Identifying Your Best Market, Neighborhood, and Property in 8 Steps | BiggerPockets Podcast 402
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- เผยแพร่เมื่อ 29 มิ.ย. 2024
- www.biggerpockets.com/show402
When it comes to pulling the trigger on a rental property, what we have is a "paradox of choice." So. Many. Options. It's easy to suffer from Fear of Missing Out, and it's even easier to get overwhelmed by the vast array of options out there.
That's where today's show comes in: press play, and Brandon and David will guide you through an 8-step process to closing on that first (or next) rental property.
Along the way, they share the tools (BP Insights) and team members ("Core Four" and more!) they use to guide decisions about where and how to deploy their capital.
Your action steps start with clarifying your goals, then we move to comparing markets and sizing up different neighborhoods using school district ratings and crime data.
Next, we tackling finding a deal - whether you're using an agent, a wholesaler, turnkey provider, or going off-market yourself... and how to avoid getting into trouble by "trusting your gut and hoping" when you're in an unfamiliar territory.
If you invest out of state, should you fly out? What about systems and standard operating procedures once you've got a tenant in the property? We answer all those questions, and more.
Finally: We mention it a few times in this episode, and if you want to take advantage of our awesome new Pro benefit, BPInsights, use the discount code BPDATA for 20% of a Pro Annual membership.
You'll get access to exclusive BPInsights Facebook group, a bonus webinar showing you how to use this platform to identify a market, and a bunch of other great Pro benefits including unlimited calculator use. Oh, and be sure to use that discount code before it expires on October 1st, 2020!
Check the full show notes here: www.biggerpockets.com/show402
Bigger pockets podcast is more valuable than most 4yr colleges- FACTS
Facts#
Wayyyy more than 90% of degrees...
Yessuh
@@ikool4ud ..h....
.
I’m almost 50 yrs old . I am an orthodontic assistant. There aren’t many assistants my age because it takes a toll on your body. I’m starting my real estate journey this year to help support leaving my job in the next few years. Thank you gentlemen for sharing the wealth oh information that will help shape my future
Always walking away with knowledge after listening. Great job guys, I’m in the mist of dipping my $50k and starting this journey.
How's it going? I hope you're doing well! I've saved $30k and want to grind for another year or so before I tip my toes in the water.
If you need a hard money lender down the road let me know I’d love to help you out
I wish I would have listened to this 4-5 years ago. 4-5 years ago when I was just getting started, every book (usually older book) I read was ALL about cash flow. These books had examples of buying houses for 30-90k.. which absolutely doesn't exist in my market. So being me, I always follow advice to a T and start looking for houses that meet these rules. I cant find anything that meets any of these rules for over a year! I finally made a move on my first duplex that "broke even" and costed about 350k to buy. now 4 years later my loan-pay-down is worth more than the cash flow I was looking for lol. and now im cash flowing $100-$200/mo on top of that. Crazy. This podcast is very important if you are a new investor starting out.
inflation...
This is so good and deep that it requires multiple listening to comprehend fully
Grinding away listening to BP while putting LVP into rental #1. Always thinking about the next one.
👏🏾👏🏾👏🏾👏🏾
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How much did you save before you got started and what was your annual income at the time? I want to purchase my first property but I'm hesitant to pull the trigger.
the "start with the end in mind" bit is a gem. David always gives the best advice ever. Loved reading your book also !
This is by far one of the best episodes. Brandon and David are on fire. I really, really, really loved this episode. I will watch this one multiple times.
These guys have great knowledge worth 2nd watch with note taking.
Lol buying his 10 months old a property. Great property banking for college. I love this show
Stage 1 , just graduated from college & looking for an entry level job to pay down student loans. Working everyday to get closer to financial independence
How is the entry level job market in your area?
Don’t look for a entry level job look for work that’s best suits you or better work for assets
Rowland Chris she’s okay but not all debt are negative debt. Some debts is actually paying you more than it’s causing you
How much loan babe?
U need to start getting cash without a job, start trading or investing or selling on amazon or some personal job, that roll in profit. My parents taught me how to trade and that have seen me through school, even though they pay the bills, but I have made profits and have my personal savings that most people who have worked for more than 8years don’t have . So get a side hustle while you search for a job
Finally someone talks about Illinois market for once
Tons of value in this conversation - thanks guys! I specifically appreciate the info on how to study neighborhoods - this really brings clarity to the process of narrowing the search down.
Love all the information you guys are providing!!
Always great content for all levels.
I love this information!! I only have one rental but I want to grow. There is so much important information here!
Montgomery, AL has several things going on:
--it's the state capital
--it's a college town(AL State, Auburn U Montgomery, etc)
--it's an historic city
--there's an auto plant (Hyundai)
Thanks for such timely and insightful information.
Loved this, will def listen again
Awesome. Learning a lot!!!
Thank you guys, I needed this!
Brandon,I love it! Gene Rivers of Keller Williams would say congrats on the way the world war 2 generation used to pay for their kids college (buy a house shortly after they are born and let your tenants pay for it). Let's bring back this age old practice and make it popular again. Looking forward to the documented journey!
You guys are awesome! Triple thumbs up!
I am so glad for you guys thank you so much for sharing all this information. And also with the encouragement. I am just starting out and I’m looking at deals and sometimes I do not even know if it’s a good deal or not. Sometimes I feel like I’m just stumbling around. I don’t surely I know that as long as I’m moving forward I am building on muscle that will eventually become wealth thanks again
God damn, David is so freaking smart. He’s always dropping some GEMS at random moments.
This was a really great show today. Damn.
Truly enjoying your professional knowledge banter Also
Do you guys ever buy a rental fix it up to raise the rents to market value, raising the buildings total price then sell it and do a 1031 exchange with the money made to buy a larger rental property and repeat?
David has the best analogies.
I love that you pointed out that just because it meets the 1% rule doesn't mean its a good investment. I have friends that purchase strictly off the 1% rule and it kills me! Deals in my area are generally 1.4%+
Minute 5:30 so valuable. Start with the end in mind
This is the absolute best
“Target rich environment”..... yeaaa he was definitely in Law enforcement. Heard that a million times.
Took a lot of notes on this one 🔥💯
I love this show
Always happy to hear Brandon shout out Bangor Maine! In the middle of my second investment deal right in this city! Awesome show guys, as always :) #bangormaine #dadjokes
I’m a Realtor in San Antonio, TX. My clients are losing offers every weekend. We are making offers 30-40K over asking price. The price point we are in is 550K-700K. Appreciation is still moving up. Even with out the cash deals the appraisals have definitely caught up.
Good stuff.
I would advise flying in the first few deals to better understand the market place if you don’t already know it. You’ll be more comfortable trusting your team and your numbers.
Joliet,IL is complex. You’ll be doing lots of evictions on the East side.
Thank you
9:43 dat cut guys 😎
It is funny they mentioned Kansas City so many times. I work in Kansas City.
31:31 4 steps in finding deals in new markets:
1. Find agent to get you deals.
2. Find property manager to advise you on the market.
3. Find contractor to get the place ready.
4. Find a lender to get financing.
Sounds like a shampoo bottle
BRRRR🔥💪
I live in bangor, would love to hear more about it
Every episode ever on he does talk about exercising We get it you wanna be a bodybuilder
please give 8 point list then discuss each one. cuz yes I'm overwhelmed.
You are mistaken about Kansas, totally. I purchased a multifamily and 3 years later I refied it for 50% more than the purchase price. Now I did improve it some, but hardly a BRRRR.
What I would like to know about is inspectors will the bank send out their own inspectors before giving out the loan and is that sufficient?
Any solutions to fix Backyard Noise , House next to Freeway
Mound dirt 3’ or so, put up a high fence, plant a thick row of pine trees. It will lessen the noise but not eliminate it. If interior of house is loud, insulate with Rockwool insulation on exterior walls and put in triple pane windows.
Feel the fire! Let's get things going, baby!
@ 28:40 I can hear the franklin in the background
Hey Brandon!!
I live in Argentina and want to get into real estate. Here is clearly not a good place to find opportunities.
What country would you recommend I should look into? At least to kickstart my investment career.
The options I'm thinking about are Israel, Canada and Spain because I think it'd be easier to get my migration approved, and Germany or USA because I know the language and understand have a good economy. Am I off track?
Thank you so much for all your wisdom!
25:10, cue Celine Dion Titanic climax an volume max. 😭
Any solution for House backing Freeway Noise ?
Don’t have any Soundwall build by Highway Department yet
Don’t buy.
Anyone here have tips for someone trying to buy their first home to live in with their family? I'm in Vancouver Canada but any general tips would be appreciated.
A market with high cashflow should lead towards appreciation as home prices are bid up to the point where the cashflow is the minimum acceptable, right?
Different tenants live in different markets. Just because you find a section 8 house cash flowing 50-100% year 1, doesn’t mean it’s worth it for investors to deal with that asset class.
What about buying multi-family and having to inherit legacy tenants?
Is Illinois worth looking into as a first investment? I'm in Ca
Why don’t you do a 30 year loan and cash out refi in 15 years and/or use a HELOC as a sweep account to rapidly pay down the principal to get tax free income to pay for their college AND still cash flow?
Why are you hating so much on Cleveland 😂 I have properties there and it's great
Are military areas good to invest in multi family
Every 30 seconds there's another sales pitch for something Bigger Pockets is selling. It's like trying to drive to work but you're hitting a speed bump every twenty feet. I makes it impossible to enjoy any of these episodes... Hit us once at the beginning and then once again at the end and you'll get your sales pitch out there without bludgeoning us with it.
what about Arkansas ?
350k at 6%, and 450k at 2% are almost identical on monthly payments
Borrowers lose somewhere around 10% purchasing power for every 1% increase in interest rates.
Wow! "Have a job where you put away 5-10k a month..."
I don't even make half 5k a month at my job! How can I even hope to save up that kind of money?
Get a better paying job. Or find a way to make passive money like house hack.
@@stevenashwood1090 Very true. Buy a house. House hack it and leverage the income. Airbnb is a good start depending on the demand.
Marquist Price I was stuck in the same predicament , I was only making $30,000 a year and had to go through 6 different mortgage companies before one gave me a chance. I bought the cheapest house I could find in the most expensive county where I live and turned the whole basement into a separate unit plus rented both bedrooms upstairs and had no bills. Then that house doubled in value and sold it and made a couple hundred thousand dollars.
Hustle hard. Im at 80k a year after working for 3 years in IT. With current rentals Im at 100k. You just need to be flexible and have an urge to learn.
Save save save and get a side hustle next to your job. That’s how I do it. Takes me close to a year to save up enough for 1 house. I have 2 properties so far
@41:35 Brandon is firing off statistics for a region. What is he reading off of? BP insights?
15:00
40:00
Kansas City??? Which one??? There is a Kansas City in two different state, Missouri, KCMO and Kansas, KCK. KCMO is mostly Jackson County, MO and is larger than KCK. However, one of the richest counties in the country, Johnson County, KS is adjacent to KCK.
Does Brandon wash his beard every day? 😂
Good fundamentals here. (As a side note, here you'll see the difference between a groomed respectable beard vs. a haggardly beard. )
Ummm, I beg to differ....auto workers were making a TON of money in Detroit. Idk why he thinks otherwise🤔
How much were they making? Is 50 or 100k a TON of money? No.
Can david keep some distance from the mic 🎙
How boring, the only thing I learned is there are more people than I thought who can talk and talk and talk without saying anything, especially anything of value
Think , bigger pockets would get more subs , if your videos was under 30 mins … or under 20 mins .. peoples attention span , isn’t 1 hour or they just skip your channnel
Soy face?
Episodes 400,401 and 402 suck. I can't listen to them.
We want to hear guests talking real estate investing for motivation.
These clickbait 5 things/8 things/10 things are annoying and boring. Please stick to the model that got you here.
400 was one of the best of all time
Yeah at this point I've heard what Brandon and David have to say. I want to hear from other people.
Do a better job then Mothusi, they are spending hours planning and doing these so hopefully others can find success in real estate
No. Just no. Not all content has to be relevent to every listener. They might not have been able to schedule someone for every single episode. That's fine. If you don't like it, don't listen. You're not the sole demographic. I found it to be very informative since I haven't listened in several months and the title was relevant to my situation.
@@jonrussell739 I understand that they may not be able to get a guest every week. But 3 episodes in a row of Brandon/David giving us 7 /9/10 tips of doing A,B,C?
They're over doing it.
To me it appears like a change in business model, and I thought they'd appreciate the feedback. If I am in the minority then all is good.