All Forum Posts by: Marco Santarelli

@Eric Krikke -- Welcome to BiggerPockets!

I love Kansas City, MO, and am an active investor there because of the fundamentals and cash flow opportunities there. In fact, my company has been actively selling properties there since 2006 because of the regular flow of opportunities we find.

So your choice of a market is good.  Make sure you stick to solid "B" or better areas. I've bought in all of them across the board, and can tell you the least brain damage is not is the C-class areas or below.

Your Team (with a capital 'T') is also critically important. Be sure to assemble that well, or ask other seasoned and successful investors for some help.  I've been burned by a number of people in the KC market, and had great success with others.  But that's true in lost any market.

Good luck, and Continued success!

Thanks for the mention @Taylor L.  :)

Continued success!

@Sarah Szuhay -- Yes, definitely stay away from "rough" ones. That would be what we call 'D' class neighborhoods, and possibly some C- areas too.

We grade neighborhoods from A+ thru D- and our clients stick mostly to B, B+, and A- areas because of the demographics and tenant class you find there. It's largely based on what you want or need as a real estate investor.

FYI -- I covered this in some detail and depth in one of my earlier episodes titled, "Choosing the Right Neighborhood" (episode PREI 007).

Hope that helps you out.

Continued success!

Thanks for mentioning my podcast @Layne T.  I appreciate it. :)

Continued success!

Hi Sarah — Welcome to BiggerPockets!

Congratulations on getting started in real estate investing. I know the learning curve can seem steep in the beginning. However, there are many good resources to draw from to educate yourself.

Having invested from out of state for over 16 years I am well familiar with the process. It’s how I built the entire company.

Sounds like you’re in a good position with cash and credit to get started. One tip I’d like to share is to be sure to avoid questionable or less-desirable neighborhoods. That’s where I cut my teeth and I can tell you it’s not where you want to start.

Please let me know if you have any questions.

Continued success!

 

@Jonathan Beaumont — congratulations Jonathan!

It’s been great working with you. We appreciate your trust.

Continued success!

@AJ Felix — Congratulations on working on your first multi family deal.

Assuming the $300 per month is a true net cash flow number, then the numbers on the surface look good. Be sure you’re penciling in vacancy and maintenance to get a true cash flow representation.

One of the biggest variables quite often overlooked by investors is the neighborhood the property lives in. You can’t change that. Be sure that meets your criteria, whatever that is.

For me, a typical deal would have to be a minimum of a B class neighborhood. But I do have a range that I work within depending on my investment goals at the time.

What is the gross rental income on that property right now?

Continued success!

@Marco Morkous  @Bri Deel

I talk about them both on my podcast. In a nutshell: 

Dave Ramsey — Consumer focused and a bit of a hypocrite. He refers to all debt as “bad” debt. The reality is there is Good debt and Bad debt. I know he owns a lot of real estate and uses mortgage to finance them (i.e. good debt).

Robert Kiyosaki — Loves good debt; as in financing to acquire assets that produce positive cash flow. That’s the philosophy I subscribe to and teach because it has been proven to work over a very long time.

Continued success!

@Tim Stuart — It has been a pleasure for my team working with you Tim. Thanks for your trust.

Continued success!

@Mark S. — you are correct, we are a nationwide turnkey promoter connected to 22 markets and dozens of local providers.

We can provide additional value over and above working with “just” a local provider because we are both market and Provider agnostic.

We do what we can to vet any and all service providers, not just property sellers. And there are issues that come up on occasion where we go to bat for our clients.

I like to see you that we provide the knowledge, resources, and properties that people need to be successful real estate investors.

Bottom line, investors get far more value and unbiased counseling over working with a single local provider.

Continued success!