All Forum Posts by: Todd Anderson

@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.

@Shaylynn O'Leary,

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.

 Tom, I wouldn't recommend doing the development or the construction yourself unless you're very experienced.  I work with investors to get deals with builders who are building investment properties between one and four units.  

I'll connect with you so you can find out more.

@Karla Garcia,

Great thought about that comparison.  I talk with a lot of flippers in this market and with the scarcity of good deals may are looking at new construction.  I would caution you on one thing.

Building ground up takes a long time in this new market.  I have worked with a number of investors that buy a piece of property, get construction financing, if they can, and don't get a product they can rent for a return for over 2 years.  It takes a long time to build right now.  because of this many lenders won't give construction financing on a deal unless you have a track record.

There is another way, I talk with investors now about new construction investing in a different way.  We can let the builder carry the construction costs and come in as an investor at completion.  If we can work out a deal with a number of builders to keep their properties moving than we can also ask this builder to give some incentives to the investor.  Many times we can get interest rate buydowns and even free property management.  

I have exchanged my portfolio to this type of investment. The biggest advantage that i have found is now I can own a property for its first, best , years of its life.

This is a great way to invest. Best of luck.

@Amber G.,

I was in this same position a few years back.  I found that if I looked at exchanging older properties to new construction investment properties, it was not only a fairly easy process but also took away many of the problems that I had with maintenance on my portfolio.  

The investors that I work with now find this to be the case, as well as they ability to have cash flow day one.  With this cash flow it allows them to have a PM team take care of the properties and have no phone calls.  When they do this in the right market they can also find a healthy appreciation on the investment. 

Let me know if i can help talk you through the process.  

best of luck

@Tom Grieshammer,

I think the biggest difference between the two strategies is the control.  With a syndication you have very little control of the investment.

There is another way to invest in turn key properties.  The investors that i work with like to look at the new construction space to find their next investment.  We normally find both equity and cash flow on day one.  We are also able to find better appreciation and better tenants than other properties because you are competing against other new homes. 

With 120k to invest you would be able to find a nice cash flowing duplex in a market that would expect great appreciation.

Best of luck.

@Rob Cassagne

Welcome to the BP community and to REI.

HELOC's right now can be challenging, just because of rates. that being said a good number of the investors that i worked with last year used this to get the down payment.

Your investing market is the most important first step.  find somewhere that is growing in population and employment, then you can get in the way of appreciation.  next you need a team,  you can either do this by referrals or find a turn key provider.  the investors that i have worked with value a pre assembled team. 

At this point you can start looking at deals.

Best of luck on your journey.

@Brian James,

I believe that your plan to get back into REI with small multi family is a good choice. Wit this type of investment you will have the option of going with Conventional financing or a DSCR. Most brokers will be able to offer both products and will be able to let you compare.

With this small muti investment, the management should be a bit easier that larger investments and you will be able to find more management companies that can help if that is the way you go.  With this type of strategy you will be able to find the best markets nationwide.  

Best of luck on your research.

@Sean Besselman,

You came to the right place to ask your questions.  There is definitely other investors in the BP community that have gone through this exact situation.

I work with many investors that need to identify where to put their 1031 proceeds.  Many of the investors that i talk with find that looking to New Construction investing can solve the problem very efficiently.  You are able to find properties off market and are turn key and ready to except your proceeds.  The investors that I have worked with, find this kind of investment to be an easy way to identify a property that will be ready for the timing involved in a 1031 exchange.

Please feel free to connect if you need more information.  Best of luck with all the moving parts.