acquiring

[Lodewijk Hof]

Hello,

I'm dropping a forum question due to the following. I'm looking to expand my network in real estate, mainly the Memphis, Atlanta, Boston, New York, Chicago, Los Angeles and san Fransisco area.

Can you all provide me on information regarding the market, some insights and the student property situation?

[Joel Owens]

Hi Lodewijk,

First are you a direct cash buyer or are you part of a group or work with a group??

Second I assume you are looking for single family houses for long term rentals to hold and not rehabs or commercial properties.

If that's the case you need to be very careful investing from afar in single family houses as the dynamics are different.

Do not be sold on a property where they say it's CLOSE to this great area etc.

Instead look at population growth, quality of schools, the economic planning department, permits pulled for building, whether the state is business friendly and whether it is a pro-tenant or pro-landlord state, median income levels, job growth, and crime levels ( violent versus non-violent offenses ) etc.

Many more metrics to look at but this will get you started. One disadvantage is in hot markets with properties in demand the foreign investor can't waffle and needs to act quickly or you will get beat out by locals who already know the market. Even if a state is pro-landlord there are pockets of counties and cities that have issues. An example would be Fulton county where the city of Atlanta resides. It's pro-landlord but because of budget cut backs and the Marshalls office short staffed what is usually a 1 month process to evict can sometimes take 3 as they have thousands of writs to serve in some cases. You buy more in the burbs counties in GA the eviction process is much, much faster. So these are the types of things that make a huge impact with investing.

I only do commercial real estate but thought I would chime in with some things to consider.