$100k in savings, out of state new investor looking for a market to build on - Omaha?

Question

Hi there, I'm a new investor that has been a long time BP content digestor and ready to finally dive into my real estate passions part time. I'm looking at Omaha as a potential place to get things started as I've seen this city as a good place where the population is growing and price to rent ratio is favorable.

My situation: $100k cash in the bank, 760 credit and no major debts. I am fortunate to have a steady income while having lots and lots of free time to pursue real estate. I part-time live in the USA and Berlin making films and producing events.

I'm looking for a few good partners in Omaha that I could scale alongside while brrrr'ing over the course of a few years as the market continues to grow. Any agents, brokers, wholesalers, contractors, lenders, or investors I'd love to chat!

I am currently deciding between Omaha, Columbus, and St. Cloud - I'm extremely open to any advice anyone has to offer!

Sara Aviv Berger · Answer

@Lucas AndersonHi Lucas,I live in Israel and I invest in the US for the past 4 years. You don’t need any “head examining’, it is complex but it is possible!I don’t know what analysis you did before you chose the marker of Omaha but I’m assume you checked all the statistics, now you need to build yourself a team of professionals to help you start your way. Good luck!

Lucas Anderson · Answer

Thank you for chatting and thats a great question. I have zero credit card debt, only debt is an $8k covid SBA 30 year @3% and $2k student loan @ 0%. Income is steady, roughly $9k per month, netting around $6k

Lucas Anderson · Answer

@Tim Delaney Thank you for the response, that's a very great point and something that should absolutely be considered. Unfortunately, the only markets I've lived in, am familiar with, and have connections in are all too rich for my early investor journey. (NYC, DC, & Minneapolis) These markets are simply just not a great entry point in my opinion. I've been looking in and making offers in Minneapolis/St.Paul for the past 3 months, all the prices are just too inflated, the price to rent ratio is over 22. Being that I'm already out of state no matter what city I choose, I figured I might as well start somewhere that is a good entry point, has projected growth, and a healthy PtoR ratio. I'd work on building the relationships as I invest. Cashflow isn't everything for me, equity is more important but I would like a decent balance of the two.

Matt Morgan · Answer

@Lucas Anderson, congrats on getting started into the investing realm. I’m an agent/investor in the Omaha area and would love to chat with you about your goals whenever you have a chance.

Joshua Ellis · Answer

Long Distance Real Estate Investing by David Green. One of the founding members of bigger pockets wrote a whole book on this. Investing in a favorable market is a great idea. Best of luck!

Mark Wehner · Answer

@Lucas Anderson, I am a real estate agent in the Omaha metro area, I just started my real estate investment journey in 2021 in the Omaha metro area. I have been a licensed agent for 15 yrs. and a 4th generation realtor and over the last few years have gotten more into the investing side of real estate (wish I'd have done it sooner). I'm happy to chat with you about what I see in the Omaha area and share ideas.

Lucas Anderson · Answer

@Sara Aviv Berger Thank you for the motivation, I do agree that it is possible with the right knowledge and team. Plus my job is mostly remote so it's completely possible to go view a property and even be around for weeks at a time for rehab, strengthening relationships, etc.Hope Israel is going well! Happy things are working well for you.

Sara Aviv Berger · Answer

Thank you for the greetings! I hope you will do great as well :)If you have any questions on how and what, I’d love to connect and help in every way I can.

Tim Delaney · Answer

@Lucas Anderson congrats on getting started! I don’t know how you came to the conclusion of Omaha, and personally I do not invest outside my local area, but I feel like I hear often that you should pick a market that you have a competitive advantage in. If you don’t know anyone in Omaha not have spent considerable time getting to know it then is that the best market for you? Is there somewhere else that was high in your analysis that you have a competitive advantage in?Just my two cents. Best of luck and congrats on getting started.

V.G Jason · Answer

You'll be fine investing. $100k and great credit score is one thing, but do you have consistent income? And no major debts is vague. Any consumer debt, I'd eliminate before starting this.