Transitioning from being a passive real estate investor to active

[Eli Miles]

I have been investing in real estate through syndicate deals for many years.  I currently live in NYC, but have invested all over the place.  I started in NJ across the river from NYC to Brooklyn and then to Florida, Colorado, Dallas and others.  Now, I would like to start taking a more active role.  My concern is that it is very hard to start.  I would like to either buy small multi family properties or fix and flip.  My concern is that prices near me are so inflated that the returns will not be good.  Im looking for an area within 2 hours that has a decent economy and the pricing is attractive enough to make good returns.  Ideas?

[John Corey]

Eli, before we get to 'how', let's focus on 'why'. If what you are doing is working, why the switch to a more active investment style? I am not saying you should avoid being an active investor. I am just trying to get to the root of why you want to change.

If we break this down into smaller steps, getting started is well within your skills set. How can I say that? Lots of others have started from zero and learned the ropes. This is not a complex business. It is a business that rewards attention to detail. While you do not know completely what to do, you have a sense of how money is made from your syndication deals.

A little knowledge can be dangerous. Figuring out the unknown unknowns and all the dumb stuff you could never predict is an issue. Start small. Start slow. Run the numbers. Partner on a hands-on project if you like. There are so many ways.

The reason for asking about the why is it will shape where you need to focus. Some started with a 'plex or small apartment building while many others will start with a house. A few people start with small commercial. How you are wired, what motivates you and why you want to switch will provide a lot of clues. 

Good luck. Remember to breath. Enjoy the journey. Read a lot on here and other places or books. Get out there and mix it up with local investors (in the target market). 

And keep posting questions.