All Forum Posts by: Greg Fitch

Yes I don’t know him personally but Brandon Hall came to mind because I have heard him on a few podcasts. Right in Raleigh.

That rate seems really high. I just financed a small multi family property at 5% through First Citizens. Title was in the name of my LLC. Definitely check out the smaller banks and local credit unions.

Sounds like an interesting opportunity. Finding a 45 unit multifamily at least around here is a rarity. Assuming financing is not an issue, you are happy with the area's projected growth in population and economy, you have run the numbers and are satisfied with projected returns, and you have a good handle on the scope of deferred maintenance (and since you are hands off, would advise against buying a property that needs a lot of work), I would be encouraged and invest the time in a thorough tour of the property. A good local property management firm will be essential for the success of your investment since you plan to be hands off. Interview property managers before making an offer or during due diligence; if you connect with a property manager that may give you confidence to move forward - and you will learn a lot about market conditions like rents, cost of renovations, etc. Look at vacancy levels and market rents of this property's competition. If you are happy with all this, I say go for it! Lots of tax advantages for you on top of everything else. But just know this won't be a truly passive investment; you'll want to stay on top of issues at the property to maximize your returns, minimize tenant drama and ensure maintenance issues are promptly addressed. If you are on BP you must like real estate on some level so you may find the variety of issues fun.

My loss Cedric but thanks for getting back in touch. Keep me on your radar for other multifamilies in the Triad.

One of the things I like about BP is they're not trying to sell you anything (except perhaps a Pro membership which I don't mind buying considering how much free content they put out) and they really try to make this site a useful educational tool for investors, free from pitches, gimmicks and gurus. They are professionalizing real estate investing. I would encourage folks to make connections with other investors here and with your local REIAs and MeetUps. You'll benefit enormously from building your own network especially of other reputable investors in your local market and avoiding the gurus. You'll save money and dignity in the process and just be patient - it won't happen overnight.

Hi Bobby -

Another NC investor here with my humble opinion - which is, why not expand your geography but not go halfway across the country? I have learned that investing in multifamily is not truly passive especially with B and C class properties,and property management firms typically aren't that proactive, so visiting your properties regularly is important to keep facilities in working order and vacancies low. I would look at markets like the Triad - you can find  some decent cap rates there and I don't know where in eastern NC you live but you should be able to drive there and back in a day if you had to. Just knowing you can pop over if necessary is empowering. Conversely, as a newbie individual out of state investor - triple strike - looking at markets like the Midwest, you won't have the reputation or credentials to get very far with brokers or sellers. You could spend a lot of time flying out to look at potential acquisitions but loose out to local buyers or deep pocketed syndicators. You're in a great starting position as a seasoned buy and hold investor with little debt but now you'll be redeploying that cash at the top of the market so encourage you to be cautious and limit your risk.

Greg

Cedric I have reached out a few times - would you mind letting me know what the status is of the Greensboro 10 unit? I remain interested.

Taj, there are so many housing options in the Triangle and while Raleigh is the biggest town, you should also explore other towns and communities too. A choice should depend too on where you and/or spouse end up working. The Triangle is a spread out area and who wants a long commute time. Warning: I-40 which is sort of the Triangle's main street is super congested during rush hour, in all directions. Avoid if you can. Not knowing exactly what sort of amenities and vibe you want, here are a few family friendly options that come to mind:

There are many new planned communities that have popped up in places near Raleigh like Apex, Fuquay-Varina and Holly Springs which offer good value but lots can be quite small, you may have to endure construction noise, trucks, etc. and residents are from all over so that community feel may not have yet materialized. Raleigh's outer beltway has reached those towns so they are booming.  Briar Creek is a master planned community that is technically in Raleigh but very close to RTP and RDU so it's convenient if spouses work in different parts of the Triangle. 

Public schools in Wake County in general are good but I believe Wake County schools operate on a year round schedule and kids can be put in schools far away from home, meaning long bus rides - but you'll want to confirm that.

There are many things to love about Durham - its downtown renaissance is remarkable, the restaurant scene is great, and if your kids get into NC Science & Math later they'll be at the best public high school in the state. Southpoint Mall in south Durham is a very good mall surrounded by fairly new rental communities. But Durham public schools are generally not so good and you may want to reference Trulia crime maps since this varies block by block. Some folks leave when their kids reach school age. And rents have gone up a lot over the past three years so Durham isn't such a relative bargain any more. 

Chapel Hill is the smallest of the three towns that form the Triangle. It has good school systems and as a college town it has a intellectual vibe, except on football and basketball home game dates! Family friendly places to rent and live include Meadowmont and Southern Village. Chapel Hill has high property taxes but that's less an issue if you are renting.

These are just some random and subjective thoughts but I hope they may be of use. Check out sites like Zillow and city-data and come down and tour to make your own determinations.

Best, Greg

Attractive townhouse apartments! Those will always be in demand. Congrats.

Hi Cedric -

I would love to see more information on the 10 unit in Greensboro if it still available.

Thanks, Greg