All Forum Posts by: Todd Anderson

Micheal,

There is a couple of other things to consider.   Are you planning on managing the properties yourself?  Are you planning on doing the maintenance your self?

Many first time investors don't realize that by getting into the management they are getting another job. Many of the investors that I work with have good jobs and are looking to get into REI to grow wealth not get another job. They are happy to look further from where they live, in a better rental market, because they do not want to do the management.

If this were the case, then as others have said a hybrid of a 2-4 unit might be the best place to start.  The investors that I work with find that the financing for this size unit is that same as SF and they are able to cashflow nicely day one.  

Just another thing to think about.

Devin,

What you are working on looks very exciting to me.  I to believe that the new construction rental communities are a growing and very needed platform.  With the changes in the thinking of the new generations and the increased mobility of our society, I believe that a new rental community of single or smaller homes will become more and more popular in many areas of the country.  

I have been involved with a few of these projects in different areas of the country and each one I have worked with has been a great success.  The idea one a smaller living area and greater community amenities have been a super popular platform for people.  I will not be surprised to see more and more of projects like this get developed in the future.  

Best of luck all.  

Matt,

As others have said you need to find where you want to live,  I work with investors that find house hacking new construction properties give them great bang for the buck.  I have worked with a number that were able to get into a new construction Quad with 5% down and control 1M of property for just over 50k.  

This is a great option just look for a market that you want to be in that is growing.  

best of luck on your start in to REI

Mike ,

Congrats on getting into Real Estate Investing.  Unless you are planning on investing in your back yard and have extra time to spend, getting a good PM is very important.   If you are planning on investing out of your area a team in general is very important.  

The other option that I talk about with a lot of the investor that I work with is investing in a turnkey situation.  This will also take some research because not all are the same.  For an investor that is looking to create wealth and keep doing what they are doing this is a great strategy.  

Most of the investors I talk with are looking for an easy deal for them that can create early cashflow and long term appreciation with out taking up a page chunk of their time.  This type of investment can also offer great tax deduction, depending on your situation.

Best of luck on your first deal, feel free to connect with more questions.

I like areas of obvious growth just outside the major metro areas.  that larger areas like Tampa and Miami are difficult, because prices are so high, it is hard to find cashflow.  I have recommended areas in SW, central and NE Florida

Kody,

I work with investors all the time from California, they have found the same thing.  When I talk with them we talk about Florida and North Carolina.  They agree that these markets are worth looking at.  I moved to Florida over a year ago and have found the growth opportunities great here.  

I also am working with an investor who is about to close on a unit just outside of Charlotte. 

let me know if you would like to connect and have a chat about the areas.

Ryan,

I am not a lender but I work with a number. I have talked with a number of builders in Florida,  who like to keep some of the builds they do to get steady cashflow.

let me know if you ever want to talk about how they are doing that 

Brett,

Welcome to BP and good for you to aspire to invest in Real Estate. 

I work with investors all the time in your situation.  You have a job that keeps you busy, but you want to start creating wealth through Real Estate.  What the people that I talk to find is that they don't need to be confined to one area.  If you are looking to invest for wealth and not looking for another job don't be afraid to look at investing out of state.  

When I finally did this I found that I could invest in a market that had far better growth and for sure better landlord laws.  Many of the investors that I work with are from the West coast or the Northeast and it just doesn't make sense for them to invest around where they live.  To do this you will need to find a good team or a turnkey provider.  There is no doubt you will be able to find a deal that work in any area it is just easer in some.  

Best of luck to you and keep learning.

Richard,

I would think the hurdle of selling all 9 lots at the same time and getting through due diligence in time to satisfy the 1031 requirements, might be a big goal. I think the idea of planning on selling 1-2 lots per exchange might be easer to handle.

I work with 1031 investors all the time. Most are looking for an option to find a property quickly that they can identify and close. One way to do this is to work with builders to move their inventory of New Construction Investment property. The investors that I have worked with in the past have found units from SFR to quads that are ready to close with conventional financing.

Connect with me for any specific questions.

Best of luck.

John,

Im sorry to hear about your experience with building in Florida. This is something I hear almost daily from investors. The concept of New construction investment property was right it was just the process that caused the problem. I have worked with a number of investors this year to move their empty lots and help them get into real investments.

What I talk with the investors I work with about is letting the builder finance the build. We have an agreement with a number of builders to offer their inventory of new construction investment properties to investors when they are 1-3 months from completion. This way the builder can finance the build and keep building. The investor comes in at the end and gets the long term financing and can see a return on investment as soon as we find a tenant.

With this strategy you are able to take advantage of the cashflow, appreciation, and, mortgage pay down to create equity to do the process again. I would suggest, like others have, keep your W2 and let your real estate grow your wealth. 

Best of luck in a bad situation.