Epic Real Estate Investing - Finding Hot Markets Using Turnkey Services | 953

Episode Date: March 10, 2020

Mercedes, the Turnkey Girl, received numerous inquiries from the listeners asking how and where to find hot markets for real estate investing. Therefore, she decided to share her report on 10 hot markets in the country as well as to give her insights and clues on this subject. Tune in and find out more! Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terrio Media. So you want to be a real estate investor, but you don't want to do the work. If there were only a way where someone else could do it for you, now there is. Tune in here each and every Tuesday on the Epic Real Estate Investing Show for Turnkey Tuesdays with your host, Mercedes Torres. Hello and welcome, welcome to Turnkey Tuesdays brought to you by Epic Real Estate Investing. My name is Mercedes Torres and I am lucky enough to be partners in crime with Mr. Matt Terrio, the gentleman who created the epic real estate empire. This show is a real estate investing show for busy people.

Busy people just like you who understand the importance of real estate investing but just don't have the time to do it all themselves because it's a lot of work and it is surely time-consuming. So on this show, we designed it to give you tips and suggestions and clues on how to build passive income through real estate investing so you too can become a real estate investor part time. So if this is your first time here, glad you made it. Make yourself at home. And if this is not your first time here for my repeat listeners, welcome back, my friends. So if you ever wonder how.

I get topics to discuss on this platform. It's simple. I simply just listen to you. I get all of your emails, your suggestions come to me, either by leaving it with my executive assistant, Ashley, or you call the office, or you sent me an email. And lately, I've noticed that the question I've been getting more and more often, especially because many of you were seeing the shift in the market,

but you asked me, how and where do you find hot markets? So I decided to share some suggestions and clues for you on how I found our hot markets, not only for Matt and myself, but for cash flow savvy. So when you're looking for your next hot market to invest in, it's important to look for cash flow and to look for purchasing. below replacement cost. And when there's a purchase price and a rent ratio that are going to produce a return for you that we then call cash flow.

This is what it's called. It's called cash flow. And this is the money that is left over after you've paid all of the operating cost on the property. So the mortgage, the taxes, the insurance, make sure you have. in vacancy and maintenance and property management if property management is managing the property for you. This is what we call cash flow. Whatever is left over at the end of the day after you've paid all that off is called cash flow. And in fact, I tapped on this last week and it struck up

a lot of conversation on our Facebook platforms and just reaching out. to our offices. So it's obviously an interest to you on how to tap into those markets. So I'm going to dive into it a little bit more. But this way, when you focus on cash flow and replacement cost, you are getting the best of both worlds. Which is why, by the way, I think that investing for cash flow is a low risk real estate investing strategy because it's very predictable. It's easy to calculate. It's relatively easy to control and it's easy to manage. So this is why I believe people should invest in real estate for cash flow. But then also, if there's a bit of equity in the property when you purchase it, well, naturally, that's a win-win. So then you want to look for

those markets that are stable, where not necessarily stable is defined by the growth in the job market, but more so on the ratio of homeowners to renters. I'm a huge fan of purchasing real estate in rental markets where the average person could afford to pay their rent but may not necessarily be able to buy their owned property. And this is why I focus on markets that are predominantly rental markets. I try to focus on markets where I know that people can absolutely afford to pay their rent. So there's a stability of some sort in the job market, but I'm not so dependent on new jobs being created in that particular area. Remember, my friends, real estate is one of those things that everybody needs. Everybody needs a roof over their head. And if you

dive into a market that is predominantly a rental market. That is predominantly a rental market. market, there is going to be no shortage of renters. So, focus on diving into markets where the rental market is in demand and jumping into a property below replacement costs. Well, you've double dipped in your investment so you can get the best of both investing world. Cash flow and equity growth. then you can increase your passive income and ultimately your net worth simultaneously. Now, once you have identified these hot markets, the ones that meet both of these criteria, you may be asking yourself, but what about the unfamiliarity to those markets? I don't know how I'll be able to manage these from long-distance Mercedes.

I get that question all the time. And if one of those hot markets does not happen to be in your backyard or in the town that you live in, don't worry. Now, that is a justifiable fear, my friends. Trust me, I've had the same conversation with myself throughout the years before I started investing. So let's talk about that. What if? what if the hot market that is producing that amazing return for you is clear across another state,

what do you do? So let's talk about that. What it really comes down to is your investing game plan and your team. And believe it or not, you have a few options on how to deal with this. So first, you've heard this before. Invest in your back. Some people are tempted to do this because, naturally, they feel more comfortable with the area that they know best. But I strongly advise against it because the majority of us don't live in one of the hot rental markets of America. And since there's very little chance that you happen to live and one of these handful of truly hot markets, then you have to rely on an alternate source.

And remember, my friends, your proximity of the investment property that you purchase has zero impact on whether your investment is going to be successful or not. So don't let the fact that your hot market may not be in your neck of the woods. And just because you can't drive to it, it doesn't mean that you should not consider it as a property that should be added to your portfolio. And this, my friends, is where the importance of a team comes in. Line yourself up and build your own infrastructure so that you can efficiently and effectively invest in an area that is considered a hot, market. Now, this will entail for you to build an acquisition team, which would be either a real estate agent or a bird dog, and you're going to need a rehab team. So you're going to need a

reliable contractor, perhaps a roofer, a plumber, an electrician, a team that is going to be either a one-shop stop or independent contractors that you could. trust that will get all of the rehab job done that is necessary to make a property rent ready. And then number three and most important of all, you hear me preach about this, my friends, every week is property management. You are going to have to find an amazing property management team that understands the important of real estate investing, particularly property management. Now, this is a lot of work, and it is absolutely time-consuming, but it is not impossible. Sure, it'll take you time to establish your team and to build the relationship, but it will

allow you to get the best of both worlds if you build your own market in that team. Now, when I started investing my friends, you know, it is no secret. I lived in Southern California where I was like enjoying the sunshine 365 days a year. No joke. And I didn't want to leave Southern California. So I did the next best thing. I hopped on a plane. One of my first markets was Danville, Illinois, and my second market was Memphis, Tennessee. And those were my original markets. And I went out there. And I created teams on the ground. I established connections and I made a ton of mistakes. So I know, fast forward, that this can be done. And when you do this, get the guidance of someone who already knows the market. You know, leverage that knowledge, leverage that expertise, that team, that team on the ground that has walked the streets, that knows

every corner of that market and the infrastructure of someone who is already there. Now, in my opinion, my friends, because I've been doing this for a total of about 15 years, that is a turnkey solution. And you can guess that I am a huge fan and I lean towards turnkey operations. In fact, that is all I do to continue to build my. personal portfolio is turnkey. Sure, you can do it all yourself. You can certainly go out there like I did. Go find the team. Go vet the contractor. Go interview the real estate agents, the bird dogs, the wholesalers, and create the relationship. If you have a lot of time on your

hands, this is the way to go. But if you're a busy person looking for a smart and easy way to invest and build a team that's already done for you, it's not likely going to be your best option that you can go out and do it yourself if you're short of time and if you have a full-time career. This may not appeal to you. This is why, my friends, a turnkey service is a perfect fit for many busy professionals. You get to invest in the hardest markets, you get to be vetted regardless of where they are and the benefit from that service, the presence and the infrastructure in that market will allow you to build your own personal portfolio. And at the end of the day, my friends, if you're looking to build a true

cash flowing portfolio and you want it all done for you, a turnkey, operation is absolutely the key. Just plug in and instantly take advantage of all the hard work that that turnkey does for you. Now, once you've located the markets that you are interested in, after you've done your basic due diligence, then go to that market and interview some of the turnkey operations in that market. Trust me, my friends, there is no. There is no. no shortage of turnkey operations out there, especially in the hottest markets. But you're the boss. You get to interview who's going to work for you. You're going to interview the person that's going to be your team, your eyes and ears on the ground. And then, once you find

that market and once you find that operation that you're comfortable with, then go ahead and start adding properties to your portfolio, one or two properties at a time. Don't jump in and jump in at five properties right away. No, my friends, do one or two properties at most three in one hot market and level out the field, test it out for six months to eight months, maybe even a year. And then, year two, jump into another hot market to diversify your portfolio. I am a big fan of cash flow, but I am a bigger fan of diversification, huge. Because I do not believe that any investor should put all their eggs in one basket.

So if you're just starting out and you're going to purchase four properties, start on with two in one market and quite possibly two in another market. Don't jump in and get all four at one time. Unless you're doing a 1031 exchange and you're limited with time or resources, then I would suggest to do baby steps, one or two properties at a time. Now, my team and I, we're located in 10 hot markets across the United States that meet both the importance of my investment criteria, which is cash flow and absolute replacement costs, buying below replacement cost or retail value if you are going to be doing turnkey. Now, if you'd like a copy of my finding, my friends, by the way, I'd be happy to send you my report that has our 10 hot markets.

I invite you to download the report. You can just go to cashflow savvy.com, that's savvy with 2Vs, download the report, and you will get my instant report of our 10 hottest markets in Middle America. There's no obligation you just download it. It's yours for free. but I talk about the hottest markets that we're in, why we're in those hot markets, and then I dive into criteria as to why my criteria works best in those markets. Heck, it's worked for me. It's worked for our portfolio for the last 15 years. Why wouldn't it work for you?

You know, we help hundreds of people per year purchase their first investment property, and we love to repeat our clients with second and third and four properties because we are privileged enough to continue to serve our clients over and over and over again. So, my friends, at the front of your mind for the hottest markets in recap, your criteria for cash flow should be. Number one, a hot market, which is defined by no shortage of renters, so a predominantly rental market, cash flow where the purchase price and the rent ratio are going to provide a solid return for you, buying below replacement cost.

Now, this is if you're going to do it yourself. You want to buy below replacement cost. And number five, if you're going to build your own portfolio using a turnkey operation and buying it rent-ready, make sure that you buy at market value in a hot market where you know you are going to get an appraisal to verify that you are buying at market value. I hope that was helpful for you, my friends, to help you find a hot market. And if you want, again, my report where I divulge our hot markets, feel free to go to cashflow savvy.com. That's savvy with 2Vs.

Download our report for the hottest markets, and you will see what our hot markets are all about. That's it for today, my friends. Until next week on Turnkey Tuesday, this is Mercedes-Torres, your turnkey girl. Have an epic week. Your portfolio has seen better days.

But this two shall pass. And the best for you is yet to come. Together, we'll get you there faster. We're cash flow savvy. And we'd like to share some information with you that will show you how you can take control of your financial future and accelerate its arrival.

Go to cashflow savvy.com. More building, less waiting. Cashflow savvy.com. This podcast is a part of the C-suite radio network. For more top business podcasts, visit c-sweetradio.com.