Many aspiring investors often believe that purchasing rental properties within their own neighborhoods is the most effective strategy. However, Stephen Keighery’s journey presents a compelling case for exploring opportunities in distant markets. By successfully completing his first investment deal without even visiting the property, he not only secured a profit of $250,000 but also gained the confidence to transition from his traditional job to full-time real estate investing.
Stephen’s story serves as an inspiring example for those hesitant to step outside their comfort zones. Living in Sydney, one of the world’s least affordable cities, he recognized the need to seek better investment opportunities elsewhere. His journey took him across the globe to New Orleans, where he established his own real estate business, incorporating both wholesaling and the BRRRR method—a strategy that stands for buy, rehab, rent, refinance, and repeat.
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Understanding the data-driven approach
What sets Stephen apart from many novice investors is his keen understanding of his strengths, particularly his background in marketing and sales. By leveraging these skills, he built a robust network and developed strong relationships with potential sellers in his target market. In this podcast episode, Stephen shares valuable insights into how he utilized data analysis to identify promising markets, locate off-market properties, and successfully close deals.
Investing sight unseen
Stephen’s first investment was done entirely sight unseen. While most of his peers were skeptical of this approach, he felt confident due to the extensive research he conducted. By creating a detailed spreadsheet, he analyzed crucial data points such as median incomes, rental yields, and demographic trends in various areas. This method allowed him to pinpoint regions with high potential for growth.
Rather than relying on gut feelings, Stephen focused on hard data to guide his decisions. He scrutinized local infrastructure and amenities to ensure that the areas he considered were desirable for renters. Additionally, he engaged with local property managers to gain insights on market trends, which further informed his investment choices. By the time he was ready to make an offer, he had a comprehensive understanding of what he was investing in.
Overcoming fear and doubt
Despite his thorough preparation, Stephen admits that fear was a constant presence during his initial investment. It was a significant financial commitment, and like many first-time investors, he grappled with self-doubt. However, he recognized that true bravery lies in taking action despite fear. He embraced the possibility of making mistakes, understanding that each misstep would be a learning opportunity.
This perspective is crucial for any investor. The primary goal of a first investment is not necessarily to achieve monumental profits but to gain experience and build confidence for future endeavors. By taking the pressure off the first deal, Stephen was able to approach it with a more balanced mindset.
Data analysis and market metrics
In his quest to find viable investment opportunities, Stephen relied heavily on census data and other analytical tools available in Australia. He utilized resources like realestate.com, which provided insights into rental returns and helped narrow down his search to areas with favorable yields. By examining trends over several years, he sought not just established markets but those on the brink of growth.
Stephen’s unique approach involved seeking out regions that displayed strong fundamentals without significant price increases yet. This strategy allowed him to identify potential growth areas before they became mainstream. Once he narrowed down his options, he explored surrounding neighborhoods that showed similar promise, indicating a positive trajectory.
Building a new network
After relocating to New Orleans, the next challenge for Stephen was establishing a new network from scratch. Initially, he attended local real estate investor meetings to familiarize himself with the market and connect with fellow investors. This was essential for gathering insights and learning about the local landscape.
During this period, Stephen also ventured into wholesaling, which he discovered was a valuable method for acquiring properties. By understanding the wholesaling process, he tapped into his marketing background to create effective strategies for finding deals. This allowed him to not only invest but also to generate leads and build his real estate business in the United States.
In conclusion, Stephen Keighery’s journey demonstrates that the path to success in real estate investing does not always require proximity to the market. With careful research, data analysis, and a willingness to embrace fear, rookie investors can achieve remarkable outcomes, even from thousands of miles away. His story serves as a testament to the power of innovation and strategic thinking in the world of real estate.
