All Forum Posts by: Grant T.

@Grant T.

I hear you on the challenges of Southern California.  I just wanted to mention this since the markets you mentioned are on the other side of the country.

@Grant T.

can you find a market you can drive to, that you can be hands-on in?  it seems like you won't be able to apply any of the experience you got from your first project if you pick a random market thousands of miles away.

just something to consider.

and if you do invest OOS don't do this.

https://www.biggerpockets.com/forums/12/topics/1111808-strug...

Let's say at this point you are more than interested. You have to walk every unit. Walk around the building 2-3 times. Walk the neighborhood-bring a dog-your own or borrow one otherwise you will be seen as creepy. Is the area being improved, or becoming a dump. Are there people out and about, or are they all hiding. If the seller has screening standards and most do, try to get a feel for how those are being applied. See the leases and rent roll, and get Estoppel certs-yes that's financial but it's worth mentioning.

Hang out in the parking lot; are there cars up on blocks. Talk to a tenant. There will be a towing company sign. Call and ask if they tow cars from the address and how often. Talk to neighbors if you can. Do social media search on the building, there will be a ton of crap, but sometimes there is a surprise. 

Especially today there are many properties that are being dumped by sellers in some areas because LL are unable to control the LL/tenant relationship due to government regulation, and you need to determine if there are non paying tenants affecting the near term financial health of the property. I did all that and more on a 12 unit we bought 7 years ago, and glad I did. All the best!

Congratulations on your first deal! 

What about your first project turned you off to the development aspect of investing and made you turn towards multifamily? 

Congrats on your project, smart play! Multi-families are a great way to generate "passive" income. I put quotations around passive, because it shouldn't be completely hands off. Which is why you want to have a good team of people around you, especially if you're looking to go out of state. Have a good knowledge of the market you want to pursue, and go after it! As someone who used to be in the construction industry, I can understand why you might not want to develop again. It is a hassle, but does have that nice possibility of return. 

Very cool to read this! Choose your market and then build your team in that market. Curious why you aren't replicating what you just did to make another large chunk of capital? 

Quote from @Grant T.:

Hey everyone, I am new to Bigger Pockets so forgive me if I am posting this in the wrong area. I am 23 years old, own an LLC with my father and brother, and live in California. We are about to close on our first investment project. We bought land on a golf course in Montana, built a house, and am in the process of selling it. The closing date is scheduled for 9/8. Don't get me wrong, it was awesome completing our first real project and we learned a lot. We are making a decent profit but we do not want to do this again. Over the time this was built, I fell in love with studying rental properties and learning all about them, it's honestly an addiction now. We have all agreed that we are going to roll all of our cash and profits into multifamily rentals, and I basically have the most influence and decision power in terms of what we buy and where. My top locations right now are Columbus, Cleveland, Tennessee (still need to do more research on Tennessee but I like it a lot so far) , and possibly Texas if I can find a deal. Lastly, assuming closing happens, which it most likely will, I will have roughly $250k for a down payment, closing, and rehab if needed. I am still very aggressively looking, studying, and learning about other markets across the country. Any advice would be greatly appreciated from those who have done this before. Thanks.

Congrats man!!! Hell yes!!!! Have you ever thought about doing a JV with other super experienced investors in the area to take on bigger projects and leverage other’s skillsets & relationships to scale up? Just a thought! :)

@Grant T.- thanks - congrats on your first deal ....regarding your next steps - I would advise that you get formally  pre approved for whatever  hypthetical  sceanrio you want to  use ...this will get you educated on present  numbers and  organized  and prepared - good luck

Quote from @Grant T.:

Hey everyone, I am new to Bigger Pockets so forgive me if I am posting this in the wrong area. I am 23 years old, own an LLC with my father and brother, and live in California. We are about to close on our first investment project. We bought land on a golf course in Montana, built a house, and am in the process of selling it. The closing date is scheduled for 9/8. Don't get me wrong, it was awesome completing our first real project and we learned a lot. We are making a decent profit but we do not want to do this again. Over the time this was built, I fell in love with studying rental properties and learning all about them, it's honestly an addiction now. We have all agreed that we are going to roll all of our cash and profits into multifamily rentals, and I basically have the most influence and decision power in terms of what we buy and where. My top locations right now are Columbus, Cleveland, Tennessee (still need to do more research on Tennessee but I like it a lot so far) , and possibly Texas if I can find a deal. Lastly, assuming closing happens, which it most likely will, I will have roughly $250k for a down payment, closing, and rehab if needed. I am still very aggressively looking, studying, and learning about other markets across the country. Any advice would be greatly appreciated from those who have done this before. Thanks.

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