All Forum Posts by: Todd Anderson

Vamseedhar,  You have many of the same goals and strategy's that many of the investors I work with have.  They are in areas that are difficult to make investments work.  Many out of state investors can find both cashflow and appreciation with investments when they leave their market.  

As said above look for an agent or investment that offers a proven turnkey process with "boots on the ground" in the market you're looking at.  We work with a number of builders that offer off market new construction investment properties with a proses that makes investors comfortable in not being in the area of investment.  I work with many investors from the West coast and many from outside the country.  All have expresses that they are very comfortable with the process. 

We have a great builder partner in North Carolina that has inventory that cashflows day one.   

Please connect if I can be of more help.  

Good luck on your first deal.  

Welcome to BP.   I work with investors every day that are finding our off market new construction investment properties are a great way to invest.  We have a turnkey process that will not interrupt tour beach time.  I prefer to stay on the boat but totally understand the sentiment.  

We are working with builders in great markets across Florida to get deal that work and cashflow day one for our investors.  

Connect with me for more information.

Dan,  As has been said above, there is not much information to help But.....  The investors that I work with daily are very impressed going through the process of investing in New Construction.  When you get an inspection done we send it to the builder and all items are repaired without question.  Then you are able to own a property during the best years of the property life.  

Depending on your investing goals and strategy, this can be a good way for new investors to get started.  I understand the frustration with not getting deals closed.  that's one of the many reasons I advise the investors I work with towards this path.  

Best of luck in your journey.

Ignatius,  I talk with investors every day and there is one things that I know is true about all.  Each investing strategy is totally dependent on the personal goals of the individual investor.  There is no one best product.  

The advice you gave gotten from some of these heavy hitters is totally correct.  But it only works if it fits your goals.  The investors I normally move forward with are looking for the stability of LTR and the ease of a turnkey product.  When investing in New Construction, you are controlling the property for the first, BEST years of a buildings life.  Very few repairs and very little drama.  

Welcome to REI and best of luck whatever direction you go.

Edward,  Welcome to BP!  and welcome to Real Estate investing.  I moved to Florida a year ago and I love the wether and the business environment.  

I am currently consulting as a Build 2 Rent District Manager in Florida.  We currently work with several builders throughout the state and offer a turnkey solution for new construction investment opportunities.  the majority of our off market inventory is within 3 months of being completed and we provide special incentives like investor pricing, rate buy downs, and property management discounts.

Feel free to contact me directly if you want to talk about strategy or markets in Florida

Best of luck

Don,  Congrats on the decision to start your investing journey.  Being in the industry now will help greatly.

I work with out of state and out of country investors every day. We have worked with lenders that offer great DSCR rated to foreign investors on New construction investment property. We act as your 'boots on the ground" for every deal we work on. We also have preferred venders in place for lending, insurance and Property Management.

One of the markets that we have a great builder partner is in North Carolina.  I was just looking at a duplex with an investor last week in Charlotte.  

Please feel free to connect for any detailed questions.  Best of luck!!

Kathy,  I agree with others that the long term renter being fiends may be a Red Flag.  This would not scare ma away though.  In your shoes I would not be apposed to moving into the 3 bed side get it how you want over 2-3-as much as  6 months. If you need to rent out a room you can.  Then let the long term tenants know that you will be raising the rent.  If they chose to move expect a longer turnover while you live there If they turn out to want to stay with the increase that's a benefit to you.  

Best of luck, If you have done the math and it is a good deal it will work out fine.  House hacking is such a great idea for your first rental and gives you a lot of flexibility.  

Joe, I work with investors every day that take this path.  There are so many good advantages to using the build to rent model.  As mentioned one of the top is being able to get a new construction investment property and own it for the best years of the properties life.  The builders that we work with, SI being one I work with a lot, are good at what they do and produce a good product in growing areas that rent well.  

Another great advantage is the interest rate.  As mentioned this will affect cashflow.  most of the builders that we work with are able to pay more points for the investor than sellers on the secondary market.  We have been getting the investors that I work with rates in the hight 3%s.  At that rate the investments cashflow nicely.

One big concern in this model that some investors are still being talked into funding ground up construction.  I talk with investors all the time that have been waiting up to 2 years to get their property.  We have solved for this as well.  All the off market properties we offer are within 1-3 months of completion and the builder is funding the build through CO. 

Connect with me for specific questions or to get out current off market inventory.  Best of luck!

Gayle, I can't give you specific advice on time to sell, but I am working with investors every day from all across California, who are thinking about moving their investments.  As mentioned the most common path is to do another 1031.  The investors that I work with value our process because they can get a New Construction investment property that is ready on their time line.  They also value that the process is turn key from start to finish, will knowledgeable boots on the ground.  

The other advantage the California investors have is that their equity goes a long way in another area.  Best of luck, I know it is always challenging thinking about selling a profitable investment.  Feel free to contact me with questions.    

Henry,  Cangrasts on taking the first step.  That is for sure the hardest.  I applaud you for your thinking in choices you have made so far.  When I talk to the investors that I work with, considering new construction is one of the first topics.  When doing this you are then owning the home for the best and easiest years of its life.  The rate that you are at right now is, I would expect, the main factor limiting cashflow.  When consulting investors I have tried to solve for this as well in negotiating with builders to offer rates in the high 3%s.  at this rate most properties cashflow nicely.

To your question about the LLC, starting out again you are doing the right thing. The only way to purchase in a LLC is to go with a DSCR loan. This works but the rates for a new LLC are very high. With your first rental, as you learn the only benefit is for liability, but when you are getting started, there are better and cheeper ways to mitigate liability risk. As you say good insurance and adding an umbrella will solve the issue.

Best of luck with this property, If it goes well you will be ready to refinance into a better rate and your next deal when ever we see better rates come back.  let me know if I can help.