All Forum Posts by: Kerry Noble Jr

Take a look at this graph:

What do you see?

What RECENT "buy" opportunities do you see in the overall market?

When do you think it was more difficult to find a "deal" on real estate, in 2011 or 2019?
How about today?

It's pretty easy to see that real estate proces peaked around 2007-2008 and then crashed during the Great Recession.
Around 2011-2012 prices started to recover and got back to their pre-Crash highs around 2015-2016, but really 2018-2019 when adjusted.

So, why are newbies reading books written BEFORE 2019 and thinking that you can still successfully invest using the EXACT advice in these relatively "old" books?

Yes, some of the basic principles in ANY book can still be applied to any time.
Napoleon Hill's book, "Think and Grow Rich" written in 1937, is still a good read for it's basic ideas.
Yet, you have to adapt those ideas to the modern world!

Too many newbies seem to think they can blindly follow "old" advice in today's real estate market and be successful.
Many, basically get taken advantage of by those in the industry that have an incentive to keep newbies blind to new realties, just to keep their good times rolling.

What many newbies have figured out is that they can't make the numbers work on rental purchases in their states - like California, Arizona, New York, New Jersey, Washington, etc.

What they have NOT figured out is that if they go to cheaper markets, they aren't being shown Class A rentals to buy.
Most are being encouraged to buy Class B-minus rentals and below, but no one corrects them about their mistake of using Class A assumptions on these rentals:

When a newbie gets smacked with reality via their losses, they then can only suck it up until time improves their mistake or dump at a loss.

So, my question is, why can't we all do better and grow our industry with integrity?

 That's great! Did you read Lend to Live? Or how did you figure out the nuts and bolts of how to do private lending?

Hello! My name is Alyssa and I'm new to real estate investing. My husband and I are interested in growing our wealth to make work optional w/in 5-10 years.  We are targeting buying our first property this year, ideally a duplex/triplex/quadplex for a long term rental. I currently live in Olympia, WA (high cost of living, and not very landlord friendly state), so plan to invest out of state. At this time I'm focusing on researching markets in the midwest (Indianapolis, IN; OH) due to the lower property costs. I'm looking for something that's at least cash flow neutral and will appreciate. I'd love to connect with others who are investing in these markets, as well as agents, property managers and investor-friendly lenders. I'm happy to provide insights on western Washington, as we have lived in Seattle, Tacoma, and now Olympia. 

Looking forward to connecting!

What are good neighborhoods in Indianapolis for both cash flow and appreciation? I considering buying my first rental property there, and am an out of state investor. Targeting single family/duplex/triplex/quadplex with 3 beds and 2 baths per unit, and $300K or less. Would also love to connect with anyone who already invests there, or is in the process. 

Hey all! First time poster here so let me try and lay down the situation.

My wife and I are just beginning our real estate investing journey. We live in California so I think the opportunities are better when it's OOS. Some areas I've been looking at are Provo/Vineyard, Colorado Springs, Indianapolis and Raleigh/Durham. Current timeline to purchase is probably 6-12 months as I start narrowing down and visiting some of the places to get a better idea over the next few months. Our downpayment budget is probably $60-$100k.

Questions:

1. Does focusing on macro trends (Population growth, rental and appreciation growth, good jobs) offset the 1% rule?

2. My friend is a big investor in Provo and has connections there. Would it make sense to reduce risk and use his connections first and invest it that area? Curious what experience others have had done.

3. Should I expand my target metros? These areas are relatively easy as a direct flight from SFO and one of the BP videos mentioned how it's a good idea to be able to fly direct if you have a OOS investment. For example, Columbus or Huntsville, AL has come up a bunch of times but I’d have to transfer.

4. Do you definitely need a property manager for OOS investing, especially as a first time investor? It seems like that would eat into the returns and you can't get positive cash flow for a while

5. Is it just a bad rule of thumb for an investment if you can't get positive cash flow for the first year or two? Or is this normal?