Hello All within the BP community (especially upstate SC),
I am writing this lengthy post as a way to finally push over the edge in regards to a first purchase/deal, and to develop a healthy network of fellow investors in the Upstate of South Carolina. A background snapshot:
Currently I work as a VP for an International Rail Passenger Transit Manufacturing corporation full-time. The strategy here is that the income produced from such F/T employment will allow for necessary capital funding required to enter into the RE Investment market in the Upstate leveraging the risk and need for full funding allocation through alternate channels (at least to take the edge off a bit until the goal of 'growth' takes foot). Additionally, as of August 2016, a business partner and I have registered an LLC in the state of South Carolina with competence in Real Estate Investments (Residential first; growth to commercial in the future, or in parallel given the right deal is found). Equally vested by each to further decrease the total upfront capital needed to enter. Also, recently a member of the Upstate CREIA.
My personal background consists of having previously managed self-owned town-homes in Massachusetts (born and raised), however, they were not procured in an investment mindset, but rather purchase, live in, move to next location and rent. I relocated to Simpsonville, SC in 2007 for business (currently reside & LLC location), and when the RE bubble burst in 2008, I was forced to unload the properties to avoid increasing difficulties of managing properties 800 miles away (no contracted property management utilized at that time), as well as potential financial crisis as the market turned for the worse. Due to this event being experienced, I have been hesitant in my current pursuit - for which I am trying to break from given this market continues to be on the up trend.
Some channels of our team have been secured thus far: Accountant/tax adviser, Legal, banking (company set up specific - TBD for financing investments), Insurance, Appraisal, home inspection, and rehabilitation contractor for improvements that may be necessary. I have been hesitant about a Real Estate Agent, where as 1. I haven't met many specialized in investment properties (recommendations welcome), and 2. my initial mindset in strategy is if in pursuit of a deal, the costs associated with agent representation could potentially eliminate the savings on a negotiated property, unless of course the negotiation is agreed to have seller participation (not guaranteed).
Now to the point of the post - finally. The initial core interest is procuring multi-unit properties. Our company focus is to avoid 'flips' at first, where as buy and hold to develop a base for company steady income is preferred. This could change if feedback is convincing, but as we are starting new our intuition tells us to build a base first to reinvest dividends to venture further in to additional verticals. SFR's aren't the vision either, where as the intent is to use a partnered self funded capital investment strategy to assist in a larger initial investment (more units at start). Given this is a new venture, we have not come across many Tri-plex, Quad-plex, + properties available in the Upstate, but I am sure as this is our beginning, we may not be looking within the correct channels. Would anyone have credible advise on where/how best to search, specifically locally? Is this a case where a RE Agent is best to get involved with, or are there better channels to consider through off market deals, network word of mouth, FSBO, etc.? Additionally, I feel the only way I will get good market data (rent comps, etc) is through a Realtor given their direct access to the analysis systems required. Any feedback is welcome!
I can tell the BP community experience/discussions are extremely valuable (from what I see), and I am hoping there is a local (past/present) reader who can provide specific intel to this market (Upstate South Carolina) particularly concerning advice on deal searching, hints/tips, strategic think tank views either in reply, or in private message.
Thank you all for taking the time to read my Harry Potter novel of a post. Again, any and all comments are welcome. I wish all of you continued success in all of your ventures in the interim!
Kind Regards,
Keith Frazier
