Author Topic: ready to rock (again) ...  (Read 5330 times)

ptbceo

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ready to rock (again) ...
« on: November 05, 2012, 01:31:23 PM »
... and was hoping for some advice from your community. over the past eight years i have bought a town house every two years in charlotte nc. they are all managed and are paying for themselves with a little left over. i am interested in trying new areas and ask for anyone willing to give me some advice as to good markets, agents, managers etc.. thanks in advance!!!
ptb

ptbceo

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Re: ready to rock (again) ...
« Reply #1 on: November 07, 2012, 07:16:15 AM »
maybe a better place to start is where. where would you look in the United States at this time to invest in residential rental properties? thanks.

arebelspy

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Re: ready to rock (again) ...
« Reply #2 on: November 07, 2012, 07:43:37 AM »
Even that is such a vague question with a million answers. 

There's opportunities all over the place.  There's probably 5 places I could name where I wouldn't invest, and 100+ where I would.

It all comes down to the numbers, and there are lots of places seeing good numbers right now.

(Specific parts of Ohio, Nevada, Georgia, Texas, etc. etc.)

I think you're working the question the wrong way.  Start with a place you want to invest and work from there to see how the numbers work.

Just starting with "where should I" gives a million answers.
We are two former teachers who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and are now settled with three kids.
If you want to know more about us, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
We (rarely) blog at AdventuringAlong.com. Check out our Now page to see what we're up to currently.

ptbceo

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Re: ready to rock (again) ...
« Reply #3 on: November 07, 2012, 08:30:53 AM »
thanks for your reply! i would love to know the five places that you would not invest. as far as where i wan't to invest... thats why i am here. i am a blank slate. i started doing this with only what i learned in rich dad poor dad. he said assemble a team... i did that. charlotte has colleges and hospitals, thats why i started there. these places are doing what i want them to do but i am trying to learn more from you guys. kyosaki said get mentors. thats what i am trying to do. so, if you wanted to purchace a place between $70,000 and $100,000 with 20% down and wanted the rent to pay for it and possibly make money on it each month. and you wanted to do it tomarrow to stay on a long term plan... what place or places would you look first and where (with your considerable experience) do you think it would finally be. anyone? don't worry i won't hold anyone to it! just looking for suggestions and directions from more experienced people. i will even post about the transaction so others can learn from it.

arebelspy

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Re: ready to rock (again) ...
« Reply #4 on: November 07, 2012, 08:36:58 AM »
i would love to know the five places that you would not invest.

Places where the cap rate makes it not worth it, where they'd be cash flow negative if financed at a reasonable LTV and only "cash flow" if unfinanced.  Think: NYC, SF, etc.

if you wanted to purchace a place between $70,000 and $100,000 with 20% down and wanted the rent to pay for it and possibly make money on it each month. and you wanted to do it tomarrow to stay on a long term plan... what place or places would you look first

Like I said, there's probably 100 places I'd consider being able to find deals in.

Personally I'm mostly staying local (I have the benefit of living in an area that has some potential deals), though I do have some out out state investments as well.  If I were living in a place that wasn't good to invest, I'd more be looking at people to invest with, rather than places.  There's no substitute for boots on the ground, and so I'd target certain investors I know and be loaning them money.  Long distance landlording is not my cup of tea, so my buy and holds are local, my private money investments are not.  YMMV.
We are two former teachers who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and are now settled with three kids.
If you want to know more about us, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
We (rarely) blog at AdventuringAlong.com. Check out our Now page to see what we're up to currently.

ptbceo

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Re: ready to rock (again) ...
« Reply #5 on: November 07, 2012, 09:02:51 AM »
thanks, interesting. do you use management companys or do you do it yourself?


also, this is not a private conversation. anyone else can feel free to throw some information or oppinions my way!

arebelspy

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Re: ready to rock (again) ...
« Reply #6 on: November 07, 2012, 05:57:24 PM »
thanks, interesting. do you use management companys or do you do it yourself?

For my local buy and holds, I do it myself for now as a side job.  I am planning to pass it off to a management company in a few years.  Naturally no management company needed for private lending out of state.

also, this is not a private conversation. anyone else can feel free to throw some information or oppinions my way!

Like I said, I think the vagueness of your question has everyone hesitant to answer.  I'm trying my best, but it's still hard to be specific without more details.  :)
We are two former teachers who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and are now settled with three kids.
If you want to know more about us, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
We (rarely) blog at AdventuringAlong.com. Check out our Now page to see what we're up to currently.

ptbceo

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Re: ready to rock (again) ...
« Reply #7 on: November 08, 2012, 07:20:17 AM »
respectfully, i don't know how to supply any more details. i buy a townhouse every two years in charlotte nc and have them managed by a company. right now i'm ready to buy again. i could buy another one there. they are paying for themselves. i live in new york and have never seen any one of them in person, so i feel comfortable using managers and the internet. i was hoping to get some information on markets that are good to buy in right now. i thought some more experienced people might share some opinions or knowledge so i can learn. if there are details i can supply to help make this question less vague please let me know.

Jack

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Re: ready to rock (again) ...
« Reply #8 on: November 08, 2012, 07:22:55 AM »
There's opportunities all over the place.  There's probably 5 places I could name where I wouldn't invest, and 100+ where I would.

It all comes down to the numbers, and there are lots of places seeing good numbers right now.

(Specific parts of Ohio, Nevada, Georgia, Texas, etc. etc.)

What specific part of Georgia are you referring to?

plantingourpennies

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Re: ready to rock (again) ...
« Reply #9 on: November 09, 2012, 07:26:41 AM »
I might add one additional layer of analysis-keep a look at the demographics of an area. What will happen to the number of people, and their wealth, in the near and long-term? Many things can affect this:


1. Age of current population
2. Local industry (is it based in mining and manufacturing, or IT, or petrochemical, or retail/services?)
3. Retirees (assuming the boomers retire, where will they go?)

There should be something out there that lists states and areas that are set to increase in population density in the next 10 years. Like this but on a longer timeframe:

http://en.wikipedia.org/wiki/List_of_U.S._states_by_population_growth_rate

Best,
Mr. Pop

arebelspy

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Re: ready to rock (again) ...
« Reply #10 on: November 09, 2012, 08:44:03 AM »
plantingyourpennies' advice is good.. it basically boils down to know your market.  Boots on the ground is key for this, IMO, but real estate offers much opportunity if you do your research.

What specific part of Georgia are you referring to?

I'm not invested in Georgia right now, but may soon.  I have some investor friends that own some units out there.  I believe they have mentioned to me NW of Atlanta, Cartersville, Acworth.  I'm not familiar with the area myself, so I couldn't say much more than what I've been told.  I'd be doing due diligence before I invested out there (or - more likely - would be investing with a local who knew the market).

respectfully, i don't know how to supply any more details. i buy a townhouse every two years in charlotte nc and have them managed by a company. right now i'm ready to buy again. i could buy another one there. they are paying for themselves. i live in new york and have never seen any one of them in person, so i feel comfortable using managers and the internet. i was hoping to get some information on markets that are good to buy in right now. i thought some more experienced people might share some opinions or knowledge so i can learn. if there are details i can supply to help make this question less vague please let me know.

Okay.. how did you decide on that area?  How did you find the properties?  Is it a turnkey company you used, or is it just a property management company?
We are two former teachers who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and are now settled with three kids.
If you want to know more about us, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
We (rarely) blog at AdventuringAlong.com. Check out our Now page to see what we're up to currently.

Jack

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Re: ready to rock (again) ...
« Reply #11 on: November 09, 2012, 08:57:14 AM »
What specific part of Georgia are you referring to?

I'm not invested in Georgia right now, but may soon.  I have some investor friends that own some units out there.  I believe they have mentioned to me NW of Atlanta, Cartersville, Acworth.  I'm not familiar with the area myself, so I couldn't say much more than what I've been told.  I'd be doing due diligence before I invested out there (or - more likely - would be investing with a local who knew the market).

I'd like to have a conversation with you about why you (or your friends) think that area, which is way out in the exurbs, is a good investment. In my real-estate novice opinion, the best opportunities are in the gentrifying in-town neighborhoods, especially on the east side (e.g. Old 4th Ward, Kirkwood, Grant Park, East Atlanta, etc.).

arebelspy

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Re: ready to rock (again) ...
« Reply #12 on: November 09, 2012, 06:35:01 PM »
Those absolutely might be the best places to invest in in your area.  Like I said, I'm not investing there, so I don't know the best places.  I've never heard of most any of those places (including the ones I posted).  Your boots on the ground research is 10x better than my second hand info, and was just passing it along as a place to start, as I know some investors doing well there.

Definitely go with your own research. :)
We are two former teachers who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and are now settled with three kids.
If you want to know more about us, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
We (rarely) blog at AdventuringAlong.com. Check out our Now page to see what we're up to currently.

Jack

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Re: ready to rock (again) ...
« Reply #13 on: November 12, 2012, 06:53:45 AM »
Those absolutely might be the best places to invest in in your area.  Like I said, I'm not investing there, so I don't know the best places.  I've never heard of most any of those places (including the ones I posted).  Your boots on the ground research is 10x better than my second hand info, and was just passing it along as a place to start, as I know some investors doing well there.

Definitely go with your own research. :)
My opinion is based mostly on the fact that those neighborhoods are where I would choose to live... I've never shopped around for investment real estate. I mentioned it not to tell you why I think you (or your friends) are wrong, but rather so that you could explain to me why I'm wrong.

arebelspy

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Re: ready to rock (again) ...
« Reply #14 on: November 12, 2012, 04:34:30 PM »
My opinion is based mostly on the fact that those neighborhoods are where I would choose to live... I've never shopped around for investment real estate. I mentioned it not to tell you why I think you (or your friends) are wrong, but rather so that you could explain to me why I'm wrong.

In going with investment real estate, one has to balance where they would live with where is profitable.  An overlap between these two sets would be ideal, but otherwise if the numbers make sense, it could be a good investment, even if you wouldn't live there.

(Aside from the slums, I'd avoid those, but if you wouldn't live there because it's "way out in the exurbs" and just prefer a more urban setting, then I'd think it's fine to invest in.)
We are two former teachers who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and are now settled with three kids.
If you want to know more about us, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
We (rarely) blog at AdventuringAlong.com. Check out our Now page to see what we're up to currently.