All Forum Posts by: Kory Denny

Oh and yes we are looking to add college living to our portfolio along with beach properties along the North Carolina coast. Some of these are in the tucked away areas. I like the idea of new construction and possibly building some duplex rentals. Renting out one half throughout the year while reserving the other half for family and friends. 

As for the military renting community at most bases id say this is more or less the theme. Enlisted soldiers (who make half what officers make) tend to rent properties no more than 15-20 mins from the base they work at. While officers that rent properties are more inclined to rent up to 30-45 mins from base. Officers however can move into the "buyer" category rather quickly if they are savvy. Enlisted soldiers tend to deploy more often and are less likely to buy. 

You need to invest 100k. Lets just say all things aside you have a measly 100k to invest in real estate right away. Without starting a business in your opinion what series of investments would generate the best return with average market risk. 

I do have a plan already but I would love to hear other intuitive answers as well. Thank you!

*disclosure - any answers below are not investment advice and should not be considered as such but mearly educated opinions by professionals. 

Market values are averages at best. My best guess would be that a standard deviation or two standard deviation would be a more accurate model to predict your risk. I have some experience with modeling markets. Anyone who banks on appreciation is asking for bankruptcy. Everything is cyclical in this world. You must consider the chances of a mean reversion during a correction. How much COULD you lose?

"Hot" markets right now are a combination of many factors. Have you considered inflation over the last several years? $100 bucks only buys $86 worth of goods. The cost to build new? Real Estate is just a safer option for many investors to park cash. 

You're not necessarily wrong just not convincing me. My point is there are not " hot" times to buy as an investor. Its a mindset that create opportunities. Even in a correction many investors were left with little cash to buy up any low hanging fruit. Although it may be easier to buy real estate you are also not investing in everything else that is a good deal. Real Estate is a play that represents a calculation of money and time in a particular area. 

Those that did have capital during any corrections took advantage certainly. They took advantage because they were not overleveraged, had capital to spend, and had many investor friends that needed to sell. 

Im a contractor... my experience in Wilmington area has been broad. I have worked with new construction, SFHs, MFPs, College living, house hacking arrangements, Airbnb ect... Im as I mentioned not a buyer so my experience stems from my own DD. 

Me personally am looking at properties surrounding colleges in this state. Wilmington is second on my list behind Raleigh. I don't know what your experience is but every area is different and has certain things to look for. I recommend trying to find a partner in the area that would do the leg work for you if you are unable. 

I didn't go to school for business but i'm sure they taught you about opportunity costs, deprecating assets and insurance. It wouldn't be wise to start an investing career with an exuberant purchase. I have a good friend who owns a lambo... actually two. He never drives them and doesn't care to. They are merely a trophy of ones financial success.  In your case I believe this would be a curse. 

Now a days lambos are the cars of the young, rich and famous. Those who care to market themselves through the perception of riches. This is esp true for those who own only a few super cars. 

A good friend told me best when we were discussing these types of cars:

I said wow look at that lambo! His response... 

"Thats nice and all but that's not even a down payment on a jet"    - 31 millionaire entrepreneur  

I think your dreams are too small sir. Plan on buying 10 lambos and you will find your answer on how to get there. Good Luck.

As am I! We have started taking trips down to the coast to check out a few properties. It is such a dynamic area with many factors. I recommend visiting the area in the fall. The weather is amazing and you can make a fun time out of your research trip. 

Many investors have scooped up the low hanging fruit but as with any market the right marketing and leverage can produce leads. Also consider the colleges in the area and perhaps the submarkets within those. Similar places a mile a part can have a drastic variance in price. With the end in mind consider the type of tenants you want and work back form there. 

I come from a family of builders and Southport is very historically rich for my family so more than likely i'll be biased towards this area and have avoided considering property there so far. Our family has built many homes down in that area to include the Southport marina itself. 

@Chris Martin buyer drool that's a great way to put it. It's tough sometimes when buyers are in multiple offer situations. It's good to know there are properties within an hour or two that could be great deals in the future. That's pretty much the part of my plan. 

DD fees seem to be to be the cost of time. It makes sense that a seller would ask for a DD fee esp in a sellers market. When the tides change in Raleigh (and they will) that will more than likely go with it. My neighbor is selling a house for 250 and the closing date was 55 days from the day they made an offer ( No DD Fee). Imagine the opportunity costs as an investor waiting for 250 and the seller backing out. A DD fee i'm sure leads to less walking buyers. 

There are general guidelines for lending requirements that the real estate agent could provide, the mortgage broker is the more likely party to help but clients should tackle credit issues in advance. They can do this themseleves if they are self directed but there are also companies that will help for a monthly fee. I'd say fees range from 40-140 a month depending on packages. I opted for a credit repair company when I was tackling a credit issue involving my deployments in the Army and late payments I incurred while in remote zones. While it didn't fix everything thing it did help a bit over 6 months while I focused on more important things in life. 

I'm new around here as well! Welcome likeminds! BP has a great funnel for information and a great community that have a wealth of information.