Birmingham Alabama: A Good Start for Newbies?

Question

Hello all. My husband and I have been doing a lot of research about out of state investing. We are currently in the military and stationed overseas, but would really like to start investing now. One of the areas we have been doing some research on is Alabama, specifically Birmingham. We will be in Alabama in March/April for training and would like to use that time to be boots on the ground, take a look at neighboorhoods and potentially find a great investment. Does anybody have tips on what we can do beforehand to prepare us for March/April? Would anybody suggest any other areas in Alabama? Thanks for your responses in advance!

John Wijtenburg · Answer

I don't know the market well other than my father-in-law goes frequently for visits to the Regions Bank HQ.

That said, relationships are everything in any and all real estate.

Spend some time communicating with the top deal sources - brokers, owners, and influential third-parties - in the area. Get a good sense of where the market is currently and where they see the most opportunity. You don't need boots on the ground for this, just a daily commitment to progress.

After you have some good leads, arrange in-person meetings with your top 3-5 relationships to see properties and move the relationships forward.

Leah McNell · Answer

@John Wijtenburg So true. I am reading the ABCs of Real Estate Investing and there are three or four chapters that talk in depth about how critical it is to form relationships like those your mentioned above. Now that we have narrowed down our search (for the most part), our next step will be creating those relationships that will hopefully lead us to find a great Broker/potential property manager.

@Mari Pearce Thanks for the encouragement. It is a little daunting to be overseas, but my ultimate motivation is to start now so by the time we get back to the states I can get into Real Estate full time. It excites me and will allow me to be my own boss.

Also, thanks for the advice. We were actually looking in those areas and really liked the Chalkville area the most. It is good to know our research has paid off! Question for you...did you purchase a house in the states while you were overseas? If so what "must dos" should we be aware of. Right now, we are thinking about finding a Broker that can help us potentially find a house that meets our criteria. From there we will most likely hire a property manager. Is this smart? Thanks!

@James Wise I saw that link in a previous post and that guide is GOLD! Thank you!!!!!

James Wise · Answer

More important than which market you choose is which neighborhood in that market you choose. As such I think you'll want to check out The Ultimate Guide to Grading Birmingham Alabama Neighborhoods.

Jack Eyer · Answer

This market is considered by all that know it as very good for Cash Flow. Flips has been good but much harder to find now- still a hot market. MILITARY locally are piling in. I am having a number attending my weekly classes from out of nowhere?  Redstone Base in Huntsville you may not know is our largest Employer in the state with 44k EE's.

Mari Pearce · Answer

Hi there @Leah McNell, I understand exactly what you and your husband are going through, when I started my REI journey my husband and I were stationed in Egypt and it was not an easy road to do on my own, but I did it. Enough about me, Birmingham is an awesome REI market.

If you are looking at areas in Birmingham to invest in the Center Point and Roebuck area great because of the current high rental demand and the Chalkville area is a haven for more family-minded tenants. Nevertheless, there are more great areas in Birmingham, but you can also look at Huntsville, as well, while you're in Alabama.

Also, @John Wijtenburg has some great pointers, building those relationships before you get back to the states will help out immensely. If you have any questions about REI while stationed abroad, I'm here to help!

Best of luck!

Birmingham Alabama: A Good Start for Newbies?

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