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Posted almost 9 years ago

Investing thousands of miles away can work!

So it's been a while. But since I last posted I now have two rentals in the Midwest. Both tenanted with 2.6 and 3% cash flow. I never visited them and that could of been a disaster!

I spent a long long time researching perhaps to long!  I read everything I could and a lot of business books. This helped me realise that systems = a scaleable business.  You need to start with systems in place so that it helps down the line.  A good foundation is essential, you may build a wooden shed on a 1inch slab but the Empire States building no way!

The systems I put in place:

Find a realtor who will understand your position. Me being out of the country.  This was hard very hard.  I needed somebody who would visit a property and take extra photographs for me.  It was essential I wanted to see things such as HVAC water heater etc.  Any areas that would cause problems. A broken window etc. etc.

A general contractor - This can be hit and miss.  For me I was lucky I explained my plan to build up a portfolio in the area and that I wanted a good contractor who would price fair and in return get repeat work.  It was a matter of calling through the book and asking around.  I was lucky.

A good home inspector - the Realtor can perhaps recommend one. After I got a price from the contractor for fixing up all the items that needed doing I put the property under contract, subject to a home inspection. After the inspection came back I simply had the contractor re quote for any work.  If need be I would of renegotiated my price. On my first property this worked fine.  With my almost second property I walked away as it was not a good deal.  That lesson was priceless early on, Always get a home inspection!

Due diligence - assume nothing. I used the Internet Google the address, checked on spot crime for any crimes etc. I used zip skinny for demographics etc etc. I have a sheet I use for this which I can forward you a copy, it's basic but points you in the right direction.

Insurance - Again just from the phone book. With me being new to American investing, I was surprised they visited the property and took photographs of any potential problem areas. I asked for these as well,just to kind of give me another check on things.

Title company was through the Realtor and closing went fine.

When the property was mine the contractor set to work

Propert management company. I read everything I could on BP and looked through the Internet for verification. Trust nothing until it is proved I say. When I found the best company I did as much checking on them as I could and just went with them. It has been great.

I returned home just before Christmas after three months at sea, having done all the above from the cabin of an oil tanker.  It paid off,as the next day we had a tennant.

I realise I have had a lot of luck, or is it? Hours and hours of reading pod cast etc etc. perhaps it's not look it's about learning and putting that in to practice.

The second property came from my Realtor who had bought a package of properties.  After completing the above I bought the property with little hassle and am just about to make a couple of minor improvements.  This property came with a tennant already in place.  Your could tell by the pictures they took good care of the place and had not been late with rent so it seemed a a win.

Back on my ship now with lots of time on my hands for learning. Just watched the Thursday night pod cast, highly recommend!

We are hoping to secure a couple of multi family properties by June / July.

I will be looking into how we can raise private finance for the future and keep growing.

I think to be successfull you need time, money and knowledge. With one you can network to find the other two in other people. Eventually you will have all three!

Hope you enjoy the post, any questions please feel free to let me know.

I promise not to leave it so long next time

Nick



Comments (5)

  1. I second this. I'm closing on my 4th purchase made while overseas. I haven't been in the area since 2010 living across various parts if Asia. 

    The downside I've seen is that I probably pay a premium for most services because my standards have to be extremely high for my team and they require extreme integrity and work ethic, within isn't cheap and if I'm honest, is the wrong mindset to have if you're really looking for people who know how to cut costs. 

    I assume someday when I move back I'll be able to improve costs structure. But until then...


  2. Thanks.  Have you invested yet? This is a really great place to learn.

    Keep in touch

    Nick


  3. Great reading Nick, thanks for tips for newbies like me :-),


  4. Hi and thank you for reading the blog. 

    If I was to try and find a Realtor now I would search on BP first. It could save you loads of time if somebody is registered on the site. If not then I would look for people in my chosen area and ask on BP. I have found that most people are happy to help.

    I would then key the realtors name in google etc and the company or local company branch. It's just a matter of trawling through a few pages to see what comes up.

    I would then contact the realtor and explain your situation and what you need. Do you have any special request from them. For me photographs of areas not shown in the general photographs of the property was one thing. Do they understand they need to be your eyes? More so for me as I could not visit the property.

    Obviously don't waste people's time , but see if they will go that extra mile for you.

    Hope that helps

    Nick


  5. hi

    how do you search for realtors? any recommended source?