All Forum Posts by: Jeff He

Your local real estate investor meetups and Bigger Pockets are two great places to start. The thing about mentorships, like any relationships, is that it's a two way street. You have to provide value to them just as they provide value to you. It's good to start by thinking about what skills you're really good at and what skills you could use more help with on. In the course of your networking, look for people who have the complimentary skills gap. 

Maybe you're really good at browsing the MLS and can build spreadsheets really fast, but you're not sure how to find contractors in the area you invest in. You could partner with an out of state investor that is good at building teams, but doesn't quite understand the area as well as you do, etc.

@Guy Idan

+1 to Nick's comment. In a properly set up syndicate, the managing member (GP) should be a separate entity from the entity where the assets are held. So if the GP runs into trouble (bankruptcy, goes to jail, etc), your assets are shielded and untouchable by the aggrieved party.

Always read the operating agreement carefully or get the GP to walk you through it. If they don't have time to walk you through it, then they're probably not someone you want to invest with.

@Oscar Rodriguez

What area are you investing in? It's competitive out there. Some of my wholesalers have low inventory.

@Jeremy Scott Sherman

Welcome!

@Mike Kedziora

If it cash flows well, keep it. You could refinance the property to pull out most of the $70k and use it to buy another rental.

@Tyler Miles

In my opinion, the best thing to do is to put yourself in the shoes of a renter. Visit all the sites you would normally visit if you were looking for housing. That would give you a good sense of what the market rents are. It also gives you a floor of what anyone who wants to have a roof over their head must pay.

@Moaaz Malik

I'm from South Bay! I'm 100% in the same boat as you. Not only are the properties in the area unaffordable, I frankly think they're also a bad deal. (Open to being corrected by anyone who has found good deals consistently in the bay area).

I ended up becoming an out of state investor. I'm in two states and just got my fourth property under contract. Happy to share some insights! (Or grab a beer / coffee)

@Ramon E Alvarez

Haha, knowing banks and their abilities to build tech...it would be a century before they get anywhere close. Anyone who has used a bank's mobile app will tell you more bad things about it than good things.

@William Coet

Jobs. Jobs bring people to a location. Fast job growth means more population growth than units can be built.

Local demographics. As baby boomers elect to age in their SFHs there is less supply of SFH for the next generation. This keeps them priced out of buying and stuck renting. We're building half a million less units per year than we were in 08. After the bubble burst, the inflow of skilled laborers into the construction business also slowed. It's going to a decade before supply and demand balance out.

@AJ Anderson

I've heard good things about NC and Nashville. I've also seen a lot of people really like Indiana.

Personally, I've invested in Ohio and Maryland for the cash flow. More appreciation than I anticipated (I think it's an overall market phenomena and not a regional catalyst).

How are you currently looking for properties? I like working backwards and figuring out market rents first. I use Zillow and pretend to be a renter and figure out what's the minimum rent I have to pay to not be homeless. Then I look at housing prices to get a sense of what's the minimum amount I need to pay to obtain said rents. ~Rough ratios allow you to compare zip codes and regions fairly quickly before you get into more property specific due diligence (taxes, insurance, utilities, etc)