NYC-based newbie investing in Atlanta!

NYC-based newbie investing in Atlanta!

Investor · NYC · Member since 2019 · 12 posts · 5 votes

Hi all! Joined BP last year after stumbling across the site in my quest to become more immersed in the world of real estate investing. Began listening to the podcast, and I'm sure like you all, was instantly hooked. Have learned so much over the past few months, and as I am now truly beginning my investment journey, wanted to make use of this great resource as well!

A bit about me...

I'm NYC based with a background in fashion. However, real estate has always been part of my life. Growing up my mother was (and still is) a real estate agent, and my parents also invested in buy and hold real estate both in state and out of state. I also later became a real estate agent, dealing primarily with high end rentals in North Brooklyn. 

And on to my investing plan...

Fix and flips in in-demand Atlanta suburbs. I will be partnering with a family member who is based in Atlanta. We've decided on Atlanta because of the market growth, demand, and (relatively, especially compared to NYC) affordable prices. Our year one goal is one flip per quarter, and from there want to incorporate buy and hold into our strategy as well. 

We're exploring different methods of pooling money for group investing in order to maximize access to greater deals - this is the one area that's giving us a little trouble. We've looked into both syndication, and more traditional straightforward partnerships. We've floated the idea of an investment group to people in our network, and have received great feedback and interest. We like the simplicity of a straightforward partnership, but feel like it could lead to too many cooks in the kitchen. We like that syndication allows for one or two people to act as GPs and take ownership over projects, but have found the intricacies of it to be super complex, and are concerned that the potential investors in our network might not be comfortable with it....so basically, we're still trying to sort through all of that!

Excited to embark on this journey, and thankful for this great community! Looking forward to connecting with other investors and agents, expanding my network, and watching everyone crush their goals!

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  • Roni E.Pro Member
    Specialist · Earth 2.0 · Member since 2019 · 598 posts · 271 votes
    6y

    I would leverage your database. You are in the fashion business. I apologize as my information about that business is limited but you could start off with rent out space to models, or photoshoots. This way you can earn a commission(fyi need to be a licensed agent, so first meet that). Fashion models and photographers from what I hear do well. If you then doing a 506(c) investment and those folks are accredited investors there is some possible investors.

  • Brenden MitchumBusiness Member
    Rental Property Investor · Atlanta, GA · Member since 2019 · 1k+ posts · 872 votes
    6y

    Hey @Carla Marie, welcome to the BP community!

    It sounds like you and your family have an awesome plan in the works there. It also sounds like the reason you are having trouble with structuring the deals is a two-fold. First, as you mentioned, you lack the full understanding of syndication necessary to make yourself and those in your circle comfortable. I am no expert on syndication but there is tons of information on the topic here in the BP forums. 

    Your second issue could be that some of those in your circle do not share the same goals as you and your family. So you would definitely want to make sure everyone's goals align first. I recommend taking it slow to go fast. Don't jump into anything without fully understanding your potential partners' goals and aspirations because this will end up slowing you down during a critical point.

    By the way, where are you all looking to invest here in Atlanta? Have you come down to check out any of the submarkets you are interested in?

  • Investor · Alpharetta GA and Destin, FL · Member since 2020 · 68 posts · 55 votes
    6y

    Hi @Carla Marie, I just sent you a message. We just pivoted last year from single family flips to purely syndicating across the Southeast. I'm from Atlanta (Alpharetta to be specific) and can explain some of the details behind syndication. Let me know!

    Courtney

  • Investor · NYC · Member since 2019 · 12 posts · 5 votes
    6y
    Originally posted by @Roni E.:

    I would leverage your database. You are in the fashion business. I apologize as my information about that business is limited but you could start off with rent out space to models, or photoshoots. This way you can earn a commission(fyi need to be a licensed agent, so first meet that). Fashion models and photographers from what I hear do well. If you then doing a 506(c) investment and those folks are accredited investors there is some possible investors.

     Great advice! Was actually looking in to doing something like this separately here in NYC where my fashion network is based. 

  • Investor · NYC · Member since 2019 · 12 posts · 5 votes
    6y

    @Brenden Mitchum Still honing in on exact neighborhoods, but focusing on OTP areas. After doing some research, seems like there's a growing demand in those area, and they tend to have better school districts and lower crime rates. 

  • Brenden MitchumBusiness Member
    Rental Property Investor · Atlanta, GA · Member since 2019 · 1k+ posts · 872 votes
    6y

    @Carla Marie This is not necessarily the case for all of OTP. However, if those are two of your criteria you'll want to take a look at Gwinnett County and North Fulton. These are hot areas with great schools and low crime.

  • Ronan DonnellyPro Member
    Investor · New York City, NY · Member since 2012 · 332 posts · 385 votes
    6y

    Hi @Carla Marie, congrats on planning to take action towards your goals. In terms of structuring you can figure out how you want the partnership and then you can market it to investors that will likely go for that approach. My experience is that people investing in deals are doing so because they want to get the benefits of real estate investing without all the work and are therefore happy to be passive. Good luck!

  • Ronan DonnellyPro Member
    Investor · New York City, NY · Member since 2012 · 332 posts · 385 votes
    6y

    Hi @Carla Marie, congrats on planning to take action towards your goals. In terms of structuring you can figure out how you want the partnership and then you can market it to investors that will likely go for that approach. My experience is that people investing in deals are doing so because they want to get the benefits of real estate investing without all the work and are therefore happy to be passive. Good luck!

  • Investor · NYC · Member since 2019 · 12 posts · 5 votes
    6y

    @Brenden Mitchum Very helpful, thank you!

  • Investor · NYC · Member since 2019 · 12 posts · 5 votes
    6y

    @Ronan Donnelly That's a great way to think about it.. I think we were trying to tailor our plan to what we felt thought they would be comfortable with, but we should definitely format to meet our goals and needs, and find investors that align with that. 

  • Real Estate Agent · Columbus, OH · Member since 2018 · 1k+ posts · 1k+ votes
    6y

    Great plan @Carla Marie, best of luck! 

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