All Forum Posts by: Todd Anderson

@Sas Sel,

When I talk with the investors that I work with, who are concerned about the storms and insurance in Florida? We look at markets like North Carolina. I have worked with a number investors who are very impressed with the growth of investments around the Charlotte market.

The Charlotte market has most of the benefits of Florida, but is much more inland. The growth areas about 45 minutes outside. The city are good place to find investment properties that still hit cash flow metrics. As others on bigger pockets have said the Charlotte market is projected to be a growth market for the future.

I personally would not hesitate. I'm looking at other markets in Florida. I have found a number of great looking investments just north of you in the Ocala market.

It sounds like you've done a great job in investing so far best of luck in finding the next great investment.

@Josh Keena,

Congrats on joining the BP community. And congrats on taking your first step that's the hardest. This community will help you gain the confidence to take the next step.

When I talk to the investors that I work with I recommend that they keep their W-2 job. If it is something that they were good at and like doing. The real estate investing grow your wealth, so that when you are ready to move on from the W-2 you have the wealth to do it. This is a marathon, not a sprint. Real estate investing takes time to build wealth and to build any meaningful cash flow that will replace a W-2 job. 

It sounds like you were looking for a more turnkey approach to investing.  In your position that something I would strongly recommend. Find an agent or a team that you are comfortable working with and start growing your portfolio. If you keep working hard the way you are it won't take long before you look back and you're looking at a very nice portfolio that will create wealth for your future.

Feel free to connect if you have more detailed questions.

Best of luck in your investing journey.

@Jake Andronico,

Great point. this is an area that I have been investing in a lot lately. I have found that in many markets an investor is able to find a doable and sometimes better deal with new construction.

I found that there's a number of advantages with this type of investing. Not only are you investing into a new property that will have far less maintenance and need for immediate improvement.  But the investors that I work with find that the deals on new construction can solve for many of the problems in today's market.

Many of the builders that I work with are offering great incentives that solve the biggest problems that investors have today. This would be firstly interest rates. any of the builders that I've worked with are able to offer more of a rate by down, because the property is new construction, than you can find anywhere on the MLS. The other benefit that investors find is because of the lower cost of maintenance, and sometimes management, the properties that we find normally cash flow day one.

This is a great and growing investment class and I believe one that not everybody knows about.   thanks for bringing some for it and I hope it keeps working well in your market.

Best of luck.

@Marcus Auerbach,

While, I do agree with some of your points about OOS. I don't think that this applies to all asset classes.  In the example you give it sounds like you were looking at value ad or flip situations and I do agree that these are very tough to do from a distance. It's tough to keep good quality. It's tough to keep good timing and it's tough to keep good budget.

With the investors that I have worked with over the past few years, we have found that OOS in new construction investment properties can be a very easy and profitable way to invest. With this kind of investing, you can work with a specific or a few builders who you can easily vet.  When searching for a property manager, if you're not using a turnkey provider, you can find one that focuses more on the financials.  this is because with new construction, the cost for maintaining the property is vastly lower because all items in the property are new.

There's also the issue that we normally find better appreciation. Because these properties are normally in better areas where new construction is happening, and the best comparables are new construction, the properties appraise like new construction. This means as building costs go up the value of newer properties goes up.

There's one other thing about new construction investment properties, and also important for OOS investors.  The investors I work with find it's easier to find tenants for new properties.  They show well, and they're more desirable for tenants. This makes the job for the property manager easier and we find we can get property management at good rates.

One last benefit at the investors that I have worked with have found, with new construction to keep the builders building they often offer incentives that solve for some of the problems in the market today. We have builders that are able to offer right buy downs that make investing in this market makes sense. They are only able to do this because they are new built. You can't find rate by down to this level on the secondary market.  

All investing has a risk, and while I agree that the best way to start is to buy something in your backyard and manage it yourself to learn the lessons you need to learn. There are many investors that would like to start and because of their W-2 job, they can't or don't want to manage themselves.  this time of investor I believe OOS is a great option and a fantastic way to build wealth.

Thanks for the discussion point and any feedback.

@Eric Fernando,

I can help with some off market properties in the Charlotte area.  

@Jaden Jung,

I have another variation on the turnkey model.  Looked new construction.

New construction offers a few benefits that other turnkey providers don't. New construction you're investing into a property in a good area because it is brand new. You also get the benefit of a new property that will most likely have far less maintenance for the future. Third with newer properties, you normally get better appreciation because your comparables are other new construction.

When I talk to the investors that I work with, they can find turnkey solution to a new construction property that offers them a largely hands-off transaction, and create incentives that they can't find on the MLS. Builders are able to offer rate by downs and sometimes free property management that you just can't find on the open market.

Any of the investors that I have worked with have been so impressed with the process that they've come back for a second third or fourth property.

Best of luck on your next investment.  

@Tiffany Mittal,

Congrats on the deal this looks like a nice move of equity to get it working better for you.  I worked with a number of investors last year looking to do the same thing.  Moving from an expensive market that has grown equity, to a market that is growing in population and employment.  

It is also a good time for them to update their portfolio for age.  I have talked with may investors that are looking towards the build to rent platform to get newer properties with less maintenance to go with the new appreciation.  

Best of luck on that and the next deal.

@David Parnell,

Welcome to the BP community.  This is a great place to get questions, answered, and to learn how to take the next steps.

I would agree with others that the REIA groups are a great way to get local meet ups. I am a member of a number different REIA'S around the country, and enjoy going to meetings.

I'm not sure if this would be the right fit for you, but a number of the investors that I have worked with have looked to new construction to find duplexes. This is a strategy that's working well in the suburbs of Charlotte.  One of the positives that the investors find is that builders are able to offer very nice incentives on the new properties.  Some of these would include interest rate by downs, which is the biggest problem in our market today, and free property management.  

Connect with me if you think this would be something that would work for you.  Best of luck in your investing future.

@Michael Gregorek,

First off thanks for both your and your wifes service.  Welcome to the BP community.

I can't help at all with your RV question in NJ.  Though I think it is a creative way to save for your future.

I have worked with many investors recently who are very interested in investing in North Carolina.  It is an area that is growing and has great employment growth in good jobs. I have worked with a number of investors who have moves on properties in the Charlotte area.

If there is any way I can help let me know and best of luck. 

@Ravi Pamarthi,

Welcome to the BP community. with a question like this you will certainly get a variety of opinions.

When looking for the right market to invest. You need to keep a few things in mind. You need to look for a market that is growing in both population and employment. It is also very important to find a market that has beneficial landlord tenant laws.

There are many markets that you can find properties that cash flow, but if the market is not growing, you don't have the opportunity to get in the way of obvious appreciation. Every investment you look at should cash flow you don't want to have to feed the investment. but you also will make your most money from the investment through appreciation.

When you were looking for property for OOS investment, it needs to be in a market that has the right type of landlord tenant laws. In my experience there are many areas that are going the wrong direction with their local landlord tenant laws. Many of these are in the Midwest. It is best to look for market that allows you to manage your property the way you want to manage your property.

You would be able to find good deals in all markets on your list. investing investing out of state. You have the ability to pick the best markets in the country. Take a look around and make sure that you are investing in a place that will meet all your investing goals.

The one other thing to keep in mind when investing OOS is maintenance and management. when I talk to the investors that I work with I recommend looking towards new construction investing. with investing in new construction, you were able to get a property that will have low maintenance cost and will be easy for a for a PM to manage

Feel free to connect if I can help anymore. Best of luck.