All Forum Posts by: Benjamin Riehle

Great to see you on BP Brother!

Hello @James Y., would love to get you connected with my team leader in KCMO. Send me a PM with your email and phone number and I will make sure to connect you guys!

Best,

Hey @Arthur Soto you should connect with my brother David. We have an axpansion team in KCMO and they are acquiring a lot of investment properties near downtown KCMO. If you shoot me a pm with your phone number I am happy to connect you guys. 

Hey @Lisa, 
Shoot me a private message with your phone number and we can set up a time for a call to discuss. 

@Ryan Moore absolutely man! If you ever need anything please do not hesitate to reach out. The Tucson market has taken off over the last 12 months but there are still properties available with great upside potential. 

@Alex Verdugo would love to set up a time to learn about your real estate goals and see if my team can help you accomplish them!

Best,

If you look how many wealthy investors started, you will find they started with a single home. That is why I take great pride when a member of my team acquires their first property. I have seen firsthand how real estate investing results in building wealth. In an attempt to encourage and support other first time investors out there I have outlined a few of my team members that are currently under contract or recently purchased their first investment property within the last year. 

The first team members under contract on his first investment property is Scott (you can read about his success here: https://www.biggerpockets.com/forums/21/topics/479285-purposeful-action-leads-to-massive-results-agent-success-story) He is under contract to purchase a duplex, which will allow him to live for free. He is an investment specialist on my team in Tucson and has been a rock star from the start. He reached out to me on BP a year and a half ago. He was looking to learn about a career in real estate and joined my team as an intern. I am very proud of his achievements and can’t wait to see him continue on his journey of wealth building and living a life by design.

Here is his deal breakdown:
Purchase Price: $255,000
Down Payment 5%: $12,750
Mortgage Payment: $1,731
Rent: $1350 & $1200 (Scott will be occupying the $1,200 unit)
Payment Out of Pocket: $381
                                                                                

The head of our marketing department is also under contract on his first property. He has been a part of our team for over two years, and for the last year has been on a mission to grow wealth through real estate. David is the type of person that will set goals and take massive action to achieve them. He will be purchasing a triplex, allowing him to live for free in one unit while renting out the other two to cover his mortgage.

Here is his deal breakdown:
Purchase Price: $230,000
Down Payment 5%: $11,500
Mortgage Payment: $1,608
Rent: $1000, $800, $600 (Will be occupying the $600 unit)
Cash Flow: $192

Richard, our transaction coordinator, and my brother, Nick, our director of operations, partnered up and purchased a five-bedroom, three bath house in Tucson 7 months ago. Currently, they are living in the house, with three other roommates that cover the majority of the mortgage.  Starting in August the home will be rented for $1,700 per month, which is 500 dollars over the mortgage. They are going to purchase their second investment property in January 2019.

Here is their deal breakdown:
Purchase Price: $189,000
Down Payment (3% conventional): $5,760
Value Add: ~$5000 (Installation of A/C, plumbing updates, and miscellaneous items)
Rent form September 2017-July 2018: $11,400 (Owner Occupied & rented other rooms)
Rent from August 2018 to July 2018: $18,000

Brian Glasser, the Team Leader in Kansas City, has hit the ground running with building his real estate investment portfolio. His first property was a SFH in the heart of Kansas City. He quickly moved to acquire a second SFH which he operates as an Air BnB. He also is a part owner of a duplex that is under remodel. Brian will be purchasing his fourth home at the end of July. This is a two bedroom house that is being fully renovated. Once complete he will move into this home and already has the second room rented. His roommate will cover a majority of his mortgage, allowing Brian to continue to save towards purchasing his next property. He joined the company this past January and has taken massive action in building his real estate team and real estate portfolio. He is quickly becoming a top agent in Kansas City, and I am very excited to have him as a part of my team.

Here is his deal breakdown: (airBnB)
Purchase Price: $106,500
Down Payment: $5,323
Mortgage Payment: $671
Average Monthly Income: $2,200
Cash Flow After Mortgage: $1,529

This post only shared a few of the team members who have taken the necessary steps to achieve financial freedom. Using my own journey, I have been able to pull the curtain back on real estate investing showing my friends, family and team members how, with massive action, it is possible to gain wealth through real estate.  As I continue to achieve my goals, I want to continue to show as many people as possible what can be achieved through real estate investing.

Have a purposeful day,

Ben Riehle

Almost 6,500+ jobs and 8 major companies moving to or growing in Tucson

The secret is out, Tucson is growing and growing fast. Just about everywhere you look there are new developments breaking ground and new announcements of companies moving to Tucson. Recently, I wrote an article that primarily focused on the large residential developments taking place in the Old Pueblo. I posed the questions, is Phoenix’s sleepy little sister city finally waking up? It appears the answer is a resounding, YES! This article will explore some of the companies responsible for Tucson’s growth and the anticipated economic impact these companies will have on our local economy. Additionally, I will explore the effects these announcements will have on the local real estate market.

I recently sat down for lunch with Edwin Harper of RMH Investment Management, LLC. – a local Tucson investment manager. Edwin shared research his team completed on the Tucson economy. While Caterpillar, Raytheon, and Amazon have garnered much attention as they start or expand operations in Tucson, less attention has been given to companies like Vector Space Systems, Home Goods, Hexagon Mining, Comcast and Ernst & Young which collectively will bring 2,500 jobs and over $1.5 billion of economic impact to the local economy.

	Jobs Created	Economic Impact (In Millions)
Raytheon	2,000	$400
Caterpillar	600	$600
Amazon	1,500	TBD
Vector Space Systems	200	$210
Comcast	1,125	$385
Home Goods	900	$870
Hexagon Mining	120	TBD
Ernst & Young	125	TBD

Over half of the 6,500 the jobs identified in the table above will have average salaries over $70,000. Raytheon, for example, is anticipating an average salary of $110,000 for their 2,000 new positions. Vector Space Systems anticipates average $70,000 salaries for their 200 positions.

Another beneficial effect of the growth is the amount of development currently planned. Amazon is building a 2.3 million (yes, 2.3 million) square foot distribution center. Home Goods, a national home furnishing retailer, is set to build an 800,000 square foot distribution center. The required supporting businesses needed for this scale of development will likely create additional, trickledown jobs and growth in the local economy.

The last two years have been fantastic for the Tucson economy and the current economic climate shows no signs of slowing. With new announcement from major corporate players occurring almost monthly, I anticipate this growth to continue at least through 2019. With a general context and understanding of the Tucson growth and economic environment, lets shift focus from larger economic trends and analyze their likely effects on the Tucson housing market.

Tucson’s urban sprawl covers a vast 230 square miles. Until as recently as the last two years there was little demand in being centrally located, and living near Tucson’s CBD was viewed negatively. This has changed dramatically. Today, being close to the trendy nightlife and popular restaurants located in the heart of Downtown Tucson is a huge draw. As result, home prices in nearby neighborhoods have appreciated dramatically. With Hexagon, Ernst & Young, Caterpillar, and others locating their offices in downtown Tucson, it seems likely that demand for central housing will become even greater. Although it’s early, I expect housing demand near the new Amazon warehouse and Raytheon building to should similarly increase.

I have lived in Tucson for over a decade.  Over that time, I have seen the city come alive and grow faster than nearly anyone could have predicted. Downtown nightlife has greatly improved. Employment opportunities are increasing by the day. It seems the rest of the country has realized Tucson has a lot to offer. As we move into the second half of 2018 it appears the economic growth will continue to fuel the already flourishing real estate market – especially in select locations. The main question I ask is how long this growth can continue?

My opinion: there is still room for growth and real estate investors with local knowledge can capitalize on it.

Happy Investing!

Benjamin A. Riehle

https://apexaz.com/old-pueblo-finally-waking-up/

https://tucson.com/business/raytheon-on-hiring-spree-as-tucson-expansion-takes-shape/article_3fd571fd-8d2c-527c-b22c-ccfdbe1e9bee.html

https://tucson.com/business/tucson/vector-space-to-open-tucson-manufacturing-plant-bring-jobs/article_3d1bde72-b236-5e38-9c9e-24036233d55e.html

http://tiboaz.biz/2018/03/17/tucson-to-receive-a-large-amazon-distribution-center/

@Anthony Gayden Great insight and I agree with you.

When I talk about the similarities between Tucson and KC I am referring more to the opportunity from an investment standpoint in the single family and small multi-family space. Kansas City metro is over twice the size of Tucson and much more developed. However, 10 years ago I was buying houses in central Tucson for $40,000 investing $20,000 and renting for $800-$900 per month. You can no longer do this in Tucson but we are finding success in KCMO.  

Would love to hear more of your thoughts on both markets and where you are currently investing. 

Thanks for commenting!   

@Brett G. I completely agree. I think KC has the potential to become a mixture of Denver and Austin. Looking forward to seeing how the city develops.