Avoid the Agony of a Loss

Jon Hull

North Peak Contributor

Only play to win….

I played sports for years. I love everything about getting out onto a field and pushing through all the pain and sweat for a victory. I will put in every bit of time and
work as long as there is a chance of coming out on top. So far, real estate investing feels a lot like my old sports days. I’ve put in the time, the research, and a ton of work. Now, it’s time for results. But, in a game where you are playing with your retirement money, you don’t want to lose.
Here is where we are: You have the knowledge and you have the capital. Now what? Why invest out of state? Why invest with North Peak instead of one of a hundred other turnkey companies that seemingly do the same thing?

You have the knowledge and you have the capital. Now what?

Let me help you with that.
Finding deals is the single hardest thing that a real estate investor does. I invest out of state because that is where the deals are. If you are like me you have searched your own area and maybe other areas around you. I live in Sacramento and I have looked just about everywhere within 200 miles! I have no doubt that there are some deals out there, but let me say; they are sparse and way outside of my budget! Even if I find one… the profit margin is going to be tight.
Markets fluctuate. There is a seesaw effect in real estate that can be seen nationwide. When markets slow down in the higher priced areas for investors, the markets in the lower priced areas pick up. Texas is a perfect example of this. During the recession when the California real estate market was falling apart, the Austin and Houston markets were exploding!
Right now, the deals are in places like Indianapolis, Chicago, Detroit, and Oklahoma City. This is where you will find homes that fit into the metrics that will create great cash flow for your future.
You can do this all on your own. You can build your own team. You can follow solid buying criteria. You can even fly out there occasionally to check up on your projects. Why use a turnkey company?
Like you, I work for a living. I have a great job that I am passionate about outside of investing. I have a wife, 3 kids, 9 chickens, and a small orchard and garden to take care of. At this point in my life, my time with my family is extremely valuable to me. I may have the knowledge to do all of this myself but I have to look at the hours I would spend vs the cost of using a turnkey company.
Let’s do the math on what it would cost in ‘time’ to build a team of your own, find the right investment property, vet the management team, and fly out to the market you have chosen at least once per project. All the while you run the risk
of missing some minor issue that ends up costing you even more money that you didn’t anticipate. Meanwhile, that turnkey company you were thinking about using has flipped three times as many properties as you have without any hiccups.
One of the best ways we can be successful is letting each other capitalize on their strengths rather than allowing each other to work in our weaknesses. This is what I am doing when I allow North Peak to find, rehab, rent, and manage the property for me.
The leadership here at North Peak has a combined 30+ years of experience in business, real estate and investing. This is where North Peak is strong. This is why I am here. I don’t want to gamble. I want to play knowing that I am going to win.

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