All Forum Posts by: Todd Anderson

@Austin Wood, This is a continuing growing segment in REI. @Ryan Arth, this is exactly what a number of investors I have talked with lately have found.  The market for new developments of Build to Rent units are growing.  We have been talking with investors that are interested in taking on these types of projects at different stages of the development.  

Most of the builders that we are working with now, in this space are doing just that.  Building the project if they find an interested party to take it on fine.  If not they will bring the project to the rental market.

If done right these communities are sought after by renters as well.  It offers them a new property in an area of like minded people.  

Best of luck moving forward.  

@Kevin Stearns,

Looks like you have a lot of irons in the fire.  This looks like some exciting projects you have planned.  

I can only add some general comments to this.  I would strongly recommend the investment into Multi family units or Storage units, the other two of your thoughts although many times work out great have a lot of risk attached. 

I have done many of the projects that you are looking at but not in your area. I don't have any local expertise in the right people to help. One thing that may help you in a number of the questions, when I sold my business 3 years ago I looked at the new and growing strategy of Build to Rent communities. I think we will find that this will be a growing sector of REI. For an investment vehicle it offers one main advantage over traditional Multi Family in that you have much more flexibility in exit. You can sell the the entire development if that fits your strategy or you can break the development up and sell the parts.

As for the additional considerations.  It will be greatly beneficial to have your wife become a Real Estate Professional.  That way you can maximise the benefits of the cost segregation. I have used two online companies to do cost Seg's.  DM me if you want contacts.  I have worked a lot over the years with CCIM.  I feel it is a great organisation to learn from.  Years ago I carried a designation, it didn't do much for me at the time but, the people there are great and very knowledgeable about their subjects.  Anytime you are learning it is beneficial.

Best of luck with all your ventures.  I am in a New Construction Investment space now and would be happy to help in any way.  

@Jenna Chen,

Congrats at making your start in REI. The community at BP is a great place to start.

It looks like you are on the right track with your strategy.  i would recomend this to most new incestoes.  Do you have a W2 job in Atlanta?

Best of luck.

@Connor Bath,

Good luck, this looks like a fun project.

@Gage Olson,

Congrats on the graduation! And welcome to BP.

I think you are on the right path.  I have two daughters, one graduated and one is a Junior.  i tell them all the time to find a good W2 job you like and you plan on staying with a long time.  Live under your means and start thinking about investing in Real Estate.

In your position the thought of finding a duplex to house hack, live in one side and rent the other.  plan on moving every 1-3 years and getting a new property to house hack.  In a very short time you will be able to see a very nice prportfolio building.

Best of luck on your road ahead.

@Meghan RAo

Congrats of the success that you have had in REI so far. It is great that you are thinking of adding to your portfolio.

When you leave an open question on where is a good market to invest you will get a number of reat answers.  They will all probably work.  What you need to look for is a market that is growing in population and jobs and gas beneficial landlord laws.  In a market like this you will get in the way of obvious appreciation.

Then you can look for a deal that cash flows in your favorite market market.  I have worked may investors how like the idea of a duplex in a good growing market.  A number of those investors also like the idea of house hacking that duplex. 

Best of luck and connect if you need more help.

@Krystal Lozano,

Building a portfolio to a 6 figure is definitely a long game.  You have the time.  Use the two years to learn the area and I would suggest as soon as you can, find a duplex and start a house hack.  Try to move every year to a new small multiFamily.  Before you know it you will have a nice portfolio to continue to grow.  

Best of Luck

@Marcus Everett,

Welcome to REI and you have found the best place to learn in the BP community.

Best of luck moving forward.

@LaShon Evans,

The question about LLC is a good one and you will get may opinions on the subject. There are definitely advantages to the liability issue when using an LLC, but there are some disadvantages as well. It may be more difficult to get financing and a good rate buying through an LLC. Many of the investors i work with start buying in their own name and then move the investments to an LLc after you acquire a few. Then they will start the process over.

As for finding a market.  I have learned to be in favor of finding the best market to invest in.  In today's world there are so many tools available to help you buying OOS.  With pictures and video that can be sent on progress, many of the investors I work with never visit the property.  this type of investing does require finding a good turnkey provider that has Boots On The Ground.  The investors that I work with find this benefit one of the most important. 

The market you are looking for should be one with strong population and job growth.  It should also be somewhere with beneficial landlord tenant law.

Best of luck in your search and let me know if i can help.

@Lucas DeAndrade

With the investors I work with they are  normally acquiring and average of 4 properties.  when they find a growing market that works well for their investment there is no reason to try to look for another market.  When an investor gets over 4-5 in a market then we normally talk about diversifying into a different market.  this would normally take a few years.

Best of luck on your next search.