All Forum Posts by: Todd Anderson

Frank,

I talk with out of sate investors all the time looking for the same thing.  This certainly can be done.  

What most of the investors that I work with look for is a turnkey process.  It is a little problematic to build a team of people that you have never worked with before.  I suggest to investors to find a situation where all the pieces are put together for you.  From finding the investment, to lending, to insurance, and property management.  And most importantly is to work with someone who is "Boot on the Ground".  

Let me know if you would like to connect

Jared,

Is there a reason you would look to have the risk of a Flip venture.

I would suggest looking as you said above In to a Larger Long term rental of Single or multi family.  with that cind of capital it would make sense to me to look at a Build to Rent community.  You could certainly look for individual units but that would take longer. Some of the investors that I work with find,  to build an entire community if a far easer and more lucrative way.

I may know of some options that could fit what you are looking for.  

I look forward to you connecting.  

Joshua,  

It sounds like you are on a good track. What you described is House-hacking. When the investors I work with use this strategy, they normally opt for a 5% down conventional loan. I advise that they find an area where the appreciation is obvious. Then with appreciation and saved cashflow they can reappraise and get rid of the PMI. This allows for much greater cashflow and quicker time to buy the next property.

 I also work with investors that value a turnkey proses.  Most have also been impressed to see this can be done on new construction properties.  this offers less repairs and greater rental possibilities because the property is in the best condition posable.

Feel free to connect for any more information.  

Christopher. Welcome to BP. There are opportunities around but in a market like we are in now you need to make sure all the numbers work. I have been working with some investors that are very excited about the small multi fam in the Jacksonville area. With skills like yours you should get connected to a REIA in your area and find someone to work with.

Emmanuel,

I hope your property in the Cape is working well for you.  I moved to Cape Coral just over a year ago and love the area for both living and investing.  

I work with a number of investors now that are looking for the same thing. I have partnered with a number of production builders that are starting to do what you mentioned. Along with building SFR they are also building duplex, three units, and quads. One of the hotter areas that you should look at is a little further North in Ocala.

Let me know if you would like to connect and talk about more opportunities.

Best of luck.

Kyle,  As you can see in this thread it can be done and can be done in multiple different ways.  I have done it twice in two different ways.  We had a little crash in the middle so I got to start from scratch and figure out another way.

I work with other investors now who are all on the path.  It should not be a sprint, and  certainly can be done today.  The investors that I work with are people who are keeping their jobs or careers, and investing in real estate to grow generational wealth.  Most are happy with slow growth year over year in long term rentals.  I recommend a different strategy for these people.  New construction Build 2 Rent.  Then they can own a property for the best years of the properties life and appreciation is forced through the continued rising construction cost

Real Estate is a long game not get rich quick.  

Richard, welcome to BP. there are so many great resources in this community. There are great ways to learn here and great tools to use. But I agree the connections that you can make at the local REIA is also a great way to build momentum. I am a member of a few and try to make meeting as much as I can.

Best of luck

Irina,

I would agree with Benjamins thoughts. These two investments are very different. The syndication should be more passive, BUT your investment is totally under the control of the Syndicator. There are good and bad syndicators, and right now there are more in trouble than not. I spent some time in this world as a syndicator.

With a SFR you can certainly look for a turnkey provider. This will make the investment more passive, BUT you will still have total control of your investment. Many of the investors I talk with are looking for a turnkey answer that solves for most of the problems in the investment. We prenegotiate with builders to provide new construction investment properties to our investors that offer incentives like free property management, rent guarantees, and rate buy downs that can get conventional rates to 3.75%.

I have talked with investors that use personal property equity to make the downpayment on this type of investment. We advise the investors that we talk with to find an investment that will cashflow day one. This will help cover the cost of the equity pull.

let me know if I can help in any way. Please connect with me 

Best of luck.

Chris,  Welcome to BP this is a great place to learn!

Many of the investors that I work with are looking for the same thing.  They are out there.  

As others have said the house hacking idea is great, I have an investor that will be getting control of a $1m quad for just $75k. With this little amount down it will be hard for him to cash flow right away but when he is ready to fill the last unit it will be cash flowing. Be careful with FHA some loans will keep the PMI for the life of the loan. You can use a Conventional owner occupied and as soon as you bring the equity to 20% through many invested or appreciation you can reappraise and drop the PMI.

We work with Builders to offer Off market, new construction investment properties in a number of markets. we have inventory that includes SFR, Duplex, Three unit, and Quads.

Please connect if I can get you more information.  

Drake,  Welcome to the BP community.  You sound like a very smart young man with a bright future.  Thank your father for teaching you to think this way, I'm sure he would be proud.  

Going forward with a relationship with a local bank is a great idea.  I have worked with a few local banks to build my portfolio and have never regretted it.   Get some experience with this quad and you will be ready to go back for your next deal.  Then you will have a track record, and the annuity can fund the down payment for the next venture.  

Make sure in your diligence that you account for any upcoming maintenance and make sure that there is enough cashflow to cover the payment on your current equity.  

Best of luck to you.