What kinds of REI are realisitic if you are gone all the time?

Question

I am new to REI and currently have a full time job where I work offshore. I can stay gone anywhere from 3 days to 6 weeks. I know there are investors out there that have a crazy schedule as well or have numerous other obligations. What kinds of REI vehicles have you found that work the best for you?

Account Closed · Answer

Have you considered investing with a JV with someone that handles investments in real estate full time? Most of our private investors are based in Cleveland, Houston, Montana and California. They only maybe come into town 1-2 time per year and we just keep their money working for them. We have 7 active fix and flips and 4 more to start this coming month! Maybe that would be an option and welcome to bigger pockets!

Alan Brown · Answer

I'm not sure what the problem is.... Birmingham has some of the highest cap rates in the country, and no doubt you'll find a good property manager somewhere 'round there.  You probably have nice chunks of time off for due diligence, you're in a way better situation than probably most r.e. Investors.

I had a property 1200 miles away from where I lived for 12 years; would have been lucky to see it once a year.  Didn't even have a property manager, just a good handyman who kept an eye on the place!  I wouldn't recommend that to you, but you are ideally suited for buy and hold for sure!

Good luck, can't wait to hear how it goes...

Definitely do your homework on the property managers and rehabbers, and anyone else u use.  There are some real bad ones in every field, so make sure to vet them like crazyi

Travis Tomlinson · Answer

We sell properties to turn key investors from all over the world. They profit from passive income and have virtually nothing to do with their properties from acquisition to rehab to rental. The best way to invest in real estate from your perspective is a hands-off approach. Pick a market that is a good cash flowing market such as Cleveland Ohio Detroit Michigan. Find a team that you trust and good luck.

Chris Hiatt · Answer

@Nick Patterson I will have to respectfully disagree with you. I have a lot of coworkers who work the same amount or more than I do and do great in real estate. In fact the a member of the site that is a coworker is the one that referred me to this site. I want to thank everyone for the input. After A LOT of reading and studying and talking with people I am getting a much better plan together. I am putting things together to be able to begin my journey. I guess the most important thing that I have learned so far is that you have to have a solid foundation for this. I am working diligently to create that for myself. BP has been a great resource thus far.

Bill Teague · Answer

If you like real estate then you can make money in real estate.  Make sure you know your market, what market rents are, what properties sell for, and have a partner or manager whom you can trust.  Also have a method to follow up and verify what's happening.  So trust AND verify.

Nick Patterson · Answer

With your schedule, I would not recommend Real Estate.

Too stressful for new people, too much money and its not liquid.

Better off with an Index fund or a lending club platform.

Lumi Ispas · Answer

@Chris Hiatt, I will choose newer construction condo units or townhomes. In my area, a lot of out of country or out of state buyers buy in Downtown Chicago. The properties are already managed by the HOA... Great tenants, great properties and great appreciation!

And did I tell you that Chicago is no 5 in top most powerful cities in the World?

Good luck to you!

Alex Craig · Answer

BTW, terms on the short term note could be 2 to 3% loan fee, 10 to 12% interest on a 6 month note.

Alexander A. · Answer

I probably spend a few minutes per month on mine TK properties.  There is not much to it really if you have a good property manager and especially if you have good tenants.

Alex Craig · Answer

Short term Notes with interest due paid at closing.  Your involvement would be evaluating the deal, wiring the money and when time for the loan to payoff, calculating interest and sending to that info to the Title company.  This investment would require you to know someone who is very good at short term property flips like another TK company.

Or you can do longer term notes.  There are plenty of international buyers who would be willing to put down 35% to 40% down for a 20 yr amortization with 5 year balloon note.  You could set up a note service where you did not have to do anything after funding. With such a large down payment, your risk is minimal.  For example, home is sold for $100,000.  That home would typically rent for $1,095.  Investor puts down $35,000  and pays 2% loan origination. If in the very rare chance he never made a payment, you know own a property where you are all in for $65,000 and rents for $1,095.  On your end before the loan, you would want to make sure the property was inspected and appraised.  The seller could line that up for you or even the closing attorney.  Interest rate for something like that would be 7.95%.