If your local market becomes unfavorable to invest in, it is important to have the skills required to analyze deals that are further afield. With a background in tech and a mind for analysis, Tim Vest has developed a few solid techniques for assessing new markets, and he joins us on the show today to help us learn more about them. We start off hearing about Tim’s journey in real estate and the different markets he is currently invested in. He talks about the effects that COVID is having on real estate, causing investors to pull out of the northeast and bring their money into his local markets in Charlotte and South Carolina.
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Since prices are becoming so high in his backyard thanks to these movements, Tim has had to look elsewhere, and we take a deep dive with him into how he assesses new deals and markets to invest in. On the subject of markets, Tim highlights techniques involving watching the movements of Millennials and their baby boomer parents, keeping an eye on big companies opening new warehouses, and more. When it comes to individual deals, Tim shares the different pieces of his conservative underwriting strategy and how it pertains to rent raises, cap rates, and cost-cutting. Later in the episode, we talk to Tim about some of his personal habits for success, hearing him weigh in on the power of networking, having a willingness to learn, and practicing strict daily routines. For all this and more from today’s great guest, be sure to tune in!
Key Points From This Episode:
- Introducing Tim, his company, and the many markets they are invested in.
- The effects of COVID on real estate in the Charlotte and South Carolina areas.
- Why Tim is looking outside of his hometown for deals due to prices skyrocketing.
- Tim’s method of analyzing new markets to see if they are worth investing in.
- The typical deal Tim looks for; 8% to 12% conservative cash on cash return and more.
- Tim’s underwriting strategy involving metrics for raising rent, cap rates, and expense cutting.
- More on Tim’s market analysis: His data sources and how he tracks job openings.
- Using household median income and household median price to assess a market.
- Why networking is a challenging aspect of syndication for Tim and how he overcame this.
- Tim’s method of preparing for downturns by having multiple exit strategies.
- COVID and who in real estate might be negatively affected by the next few months.
- Self-discipline tips from Tim; lessons learned and the daily habits that keep him on track.
- Why Tim spends his first 30 minutes working and how he makes his daily checklists.
- How valuable networking is for improving Tim’s business and how he approaches it.
- Why the number one contributor to Tim’s success is his willingness to learn.
- The value of helping others and how Tim likes to give back.
[bctt tweet=”COVID-19 has caused the southeastern United States, especially in the Charlotte and South Carolina areas to really, really heat up. We have a lot of traditional Northeastern investors that are pulling out of the Northeast, and they’re bringing that money into the Charlotte region. — Tim Vest” username=”whitney_sewell”]
Links Mentioned in Today’s Episode:
About Tim Vest
Tim Vest is a resilient and results-driven entrepreneur with over 20 years of professional experience in real estate, retail, and technology. His real estate experience includes syndication in land development and multifamily as well as personally investing and managing single-family rentals and fix and flips. He founded two non-real estate businesses and successfully exited a retail business which he founded in 2012.
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