All Forum Posts by: Cody Evans

@Jay Hinrichs

That would be quite the fail to end up with a wholesaler like that! Lol!

I see you have a turn key investing podcast. Any recommendations on which podcast I should watch first? I haven't completely ruled out any strategy as of yet but trying to  sort through hysteria and true cautionary tales of investing in these companies OOS. 

Is there a reason why that isn't enough money to get started? I'm no worshiper but the plan I am using is written by Bigger Pocket's own Brandon Turner and he states you only need 20k for this plan while saving 10k from their own personal income each year after. I would think that would at least be enough to get me a SFR somewhere in the U.S. and I plan on saving/investing 20k each year from my own personal income rather than just the 10k the plan recommends.

 Thank you very much for your honest opinion; I watched part of the podcast you had on bigger pockets and it was informative (I believe you started at 18 selling land). 

@Matt K.

What do you consider lower class assets? 

Also, I see you live in Walnut Creek right by me; my new real estate buddy lives up there. Do you attend Meet-ups in the area?

@Corey Tobin

How did you meet these contacts from the areas you invested in? Were they just friends you knew or investors you met through BP?

@Dylan Vargas

I am interested in exploring options. I think perhaps a flip would be a way to gain capital quickly. Would you agree? Also I just had a thought; Do you think i could out in the contract with my PM company that they do a Skype walkaround the property once a month? If so how often should I do this digital tour because i dont want to disturb the tenants too much by snooping (unless theyre bad ones)

@John Miller

I have not looked into notes. I will look into those when I get home. Do you have a suggestion on a good source to learn more about these? 

@Chris Williams

Your thought process sounds strikingly similar to mine. I really like your opinion on communication and growing skills. I want to be able to hit the ground running as soon as I store enough capital for an investment. Referencing your thoughts on managing out of state being easier due to technology evolving: Is it standard to have a clause in PM contracts that include digital walkthroughs of the propertt every once in a while?

@Corey Tobin

I am very new to this. I've only heard of the Midwest and places like Cleveland, Indy, and Memphis. I don't really know what defines a good market except for (in rank order of importance)

1) Population growth

2) Job Growth

3) Rent/price or price/rent ratio

4) Property management companies to choose from(Have to be able to switch those on a dime amiright?)

I've been looking into what determines a market for the past week now. I am usually described as a very quick learner so I am not sure if I've hit the nail on the head or am leaving out variables. What is your favorite market and why? Also why did you choose to invest in California? Was that your first purchase or last? 

Sorry for the late reply all. 

@Jaudat S.

That sounds like a good tactic. To be specific: How do you define "providers"? 

You are essentially saying to ask the experienced BP members for referrals in those markets they recommend which I'll then use as the basis for my own research on those providers(contractors, agents, PMs). After a deal closes do I close my eyes and pray or send inspectors out every once in a while to check to make sure the PM company is doing their job?

@Todd Dexheimer

I will check the podcast and your blog. Thank you for those sources.

@Dan Turkel

That sounds like a plan of action to me. I won't be investing in my area so do you still think talking to wholesalers in my area and visiting the local REIA will be a good way to network?

Hi all,

I have been in a hard spot for a while now trying to determine if investing out of state in cash flowing rentals is too risky versus saving up for a home nearby me in pricey California. Some background info: I am 22 years old, bachelors in math and 50k/year job teaching. I plan to have 20k saved in 2 years and want to be able to hit the ground running by that time. My initial thoughts on out of state were that it was a great opportunity to be able to get started in real estate but I keep getting many mixed messages on how risky it is versus managing it here in Cali myself. My thoughts are what am I going to do anyway if the property is right next door to me? I don't see how management will be impacted just by distance. Also if I buy in other parts of the country I can get started earlier, fail faster and then know what I am doing by the time I would have saved up money just for once house in Cali! I already have a residence with my wife so that is a great position to start in as I don't have to pay as much for my own living expenses. 

Can the BP community weigh in on this and give some advice on the pros and cons so I can weigh this out myself?

Responses will be appreciated, especially if they are from Cali(real estate joke)

Wow! @Dan Turkel

What a striking observation; that is exactly what I intend to do put into words. I imagine that to begin finding a wholesaler(even a terrible one) I need to do a keyword search on Bigger Pockets for "Wholesaler". How would I go about beginning a relationship with this type of person or becoming this type of person myself?

Thank you, you deserve the up vote.

@Dan Turkel

What I mean by structuring my own deals is not paying a premium for Turn Keys. I will take a referral from investors in my market of interest and use that person plus other investors to help build a team(Real estate agent, contractors, property management, etc) of competent people in a market. I will then buy a deal under market value(since I didn't use Turn Key), have my property manager rehab it with reputable contractors(that's why I pay my PM in the first place right?), PM finds my tenants, and now it's smooth sailing from here on out and I repeat the process by recycling my cash flow until I'm a millionaire. I plan on using 4-plexes as my vehicle to get there. How realistic is this plan? I am sure if everyone could do what I plan on doing they would do it. I am a newbie so if you can bring reality unto me I'd appreciate that haha! 

Hi Dan,

@Dan Turkel

I know it may seem simple to you but your Comprehensive reply is very helpful. On another note you said search for local investors in my area but I am investing out of state so does this still apply? Why would I ask people in my area? Would I be better off asking people in markets I plan on investing in? I know the answer might be both but I want to know why you say ask investors in my area since I am new to this so I don't necessarily make the connections that seems obvious to you. 

Am I correct when I say: If I want to structure my own deals where I find an OOS market and start from the ground up then I should find a good contractor first.

@Vivek Khoche

You are saying OOS and TK are very dangerous and tough to swallow successfully? Why do you say that? I'm arguing that the returns you are missing out on by investing in high price areas like California where you and I both live outweigh the risks of lost returns you receive by investing in OOS TKs. Please rebuttal because I am curious.

Disclaimer: This argument I am presenting to you isn't necessarily representative of my views but I am a newbie and I learn well through argumentation; please do rebuttal against the argument I have Presented.

@Marco Santarelli

In reference to #4 of your post:

"4. There is a lot of free information online that can help you with that, and verify information on properties. Some providers will provide you additional information on their properties and the market along with each property. Just ask."

Where do I verify what information? Is there turnkey company specific information I should look at versus setting up my own deal?