All Forum Posts by: Steve Olson

@Account Closed, there are some good points on this thread. Agents will look out for you more than a wholesaler will, but cap rates are compressed right now, big time. And that's usually what agents have access to...the "overpriced" stuff on the MLS. Not always true, but most of the time it is. So if you want any value you need to go off market, and that means swimming in the wholesaler shark tank. In my market we've been able to offer investors value by doing pre-construction triplexes and fourplexes. By the investor taking on that pre-construction risk they get rewarded with a much better cap rate. But if a performing property from day one is your main priority, I'd get ready for lower caps. If you can find something with some "hair" on it through a wholesaler, make some updates to it, lease it up at top efficiency, you could still do well. Good luck man!

Hi @Par Attaran!  Welcome to real estate investing!  Are you sure you want to do this?! LOL.  Real estate has been good to me over the years and if you get feedback here on BP and stick to it, it'll be good to you too.  As to where you start from here, it all depends on where you want to go.  I think if you want cashflow then you can do a lot better than California, and it's not just about rents/vs prices.  It's about landlord friendliness and the crazy cycles.  But there are some very compelling reasons to invest in California as well.  House hacking can be good but you'll need to do that local.  To get cashflow in CA though that's probably the way you're going to have to do it.  Or if you want to flip or source your own rentals, you can start a campaign to find motivated sellers.  But that's a WHOLE BIG THING and if you are working full time and making money, in my opinion you should do that and put surplus earnings into passive real estate.  Turnkey can be good IF you understand what it really is and what it really isn't.  That conversation is a WHOLE BIG THING too.  If you clarify your objectives and want to chat sometime I'm happy to try and help point you in the right direct.  Good luck! 

Hi @Seetha G, good questions.  I used to live there and have done a lot of turnkey deals in Indy.  46226 can be TOUGH.  There's a lot going around in Indy about how you should focus "outside" the 465 freeway.  But there are some exceptions to that based on what your goals are.  For example, IF you're going to buy in C neighborhoods in Indy, my opinion is that they should be in the Speedway/Eagledale area, which is inside the circle.  But a lot of the stuff in the 46226 zip code are in the 38th and Post area, which is OUTSIDE the circle, but it's worse than Speedway in my opinion. Happy to chat through the various neighborhoods with you anytime. 

Agreed.  50k house not in an B area.  You probably need to get more in the 80k range and up for B neighborhoods, no matter where you are in the popular "turnkey" areas. 

Hi @Jeff Caravalho, awesome question and many investors don't think about this.  I've referred a lot of investors to attorneys on this topic, and they all come back telling me exactly what @C. Timothy Murphy said.  He nailed it. 

Hi @Account Closed, in my experience, capitalization rates aren't a good measurement on single family rentals.  I much prefer to go with the "cash on cash return."  To hit those caps though you'll need to 1) source your own deals in the midwest/south or even parts of the east coast 2) buy turnkey rentals in the midwest and the south.  

Hi @Warwick Ferguson welcome to the States! I help investors acquire rentals in quite a few different markets. Financing will be the biggest obstacle for you, but if your family is willing to JV and has a credit here that would be the "lowest hanging fruit" for financing. If not, I'm happy to discuss other options that I've helped foreign investors find.

Nice to meet you @Daniel Kielbowicz! What market(s) do you specialize in?

I second that on Mountain America.  

Hi @Jason Wilde I'd be happy to chat with you about this anytime.  I live in Lehi too and half my business is helping investors acquire properties in the midwest.  Indianapolis is my favorite.  In fact, I used to live there a few years back and was able to acquire a lot of great market knowledge and connections.  Contact me if you'd like to meet up and discuss.