Investing Out of State

9 Replies

I'm new to BP and new to investing. I do have a mortgage background and currently do hold my MLO license in CA. I live in Santa Barbara, CA and for someone that does not have a lot of capital, Santa Barbara can be a difficult place to invest especially for someone that is just trying to get started, or so I've been told. I've heard that investing in other counties or out of state might be a better strategy, but then again, that leaves many unknowns as well.

What advice would you give someone starting out in an inflated market?

@Gonzalo Gonzalez Questions for you...

- Your goals? 1 property? 10? Long term cash flow? Cash flow & appreciation?

- Acceptable rate of return?

- Acceptable risk?

- Budget?

- Are you willing to build a team and travel a couple times a year to check on your investments? Or are you looking for more turnkey?

I am looking into the same thing. A little earlier today I saw a video on "virtual wholesaling" has anyone done this?

@Sam Jones I'm new to RE investing so at this point I'm looking to break into the market with my first property. I'm sure once I get that first deal under my belt, the second will be 10 times easier. I'd like to leverage someone else's money, so I'd be really interested on how to utilize private lending, if at all possible, to purchase out of state. I'm not very handy, so rehabbing out of state is not an option. I'm more interested in long term, cash-flowing investments. As far as building a team and traveling…I would definitely want to establish a team and I don't have a problem traveling two to three times a year.

@Markeilsha R. I've never heard of virtual wholesaling, but you got my interest. Do you have access to the video? Would you be willing to share?

Welcome to BP! I just drove through SB on my way back from Big Sur a few weekends ago. SB is great, I haven't hung out there in a while but I used to some!

I'm in Venice Beach and it's the same thing here. A lot of capital required and since I really only do rental properties, even a lot of capital won't help me with those out here if I want returns. I've invested out of state for the last 3 years and it's worked out fine. The biggest piece of advice is- know the team you are working with, make sure they are good, and know how to run numbers so you know what to expect on a property! Well, that's for rental properties specifically but can apply to other avenues too. If you decide to stick with SB, just know how to run numbers and unfortunately flipping is probably your best bet (unfortunate in the since that it's high capital required to do it in SoCal).

@Gonzalo Gonzalez sure! I just did a quick google search and found a couple videos on it in YouTube. I didn't pursue it more but there were a few on there.

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@Gonzalo Gonzalez

Hi Gonzalo,

The market on the West coast is very similar to what I experienced in Australia.

IMO its not a sustainable way to purchase real estate and grow a portfolio.

I probably had over $200.000 - $300,000 in opportunity cost for buying real estate predominantly focused on the increase in value.

Nowadays I will only buy cash and purely numbers based as they stand today. If the numbers suit my end strategy I will pursue the deal further.

There are many markets nationwide that offer some great figures.

Thanks for reading and have a great day.

Hi Gonzalo,

Welcome to BP, it's good to meet another central coast person.

I own a couple properties out of state and will never do that again. It's too hard to just go out and see the property if something comes up.

So with that, I've been investing in the central valley area. You can still get properties that cash flow, are less than 150k and is usually just 3 or 4 hours away by car.

Regarding virtual wholesaling, there's lots of info on BP about it. The short of it is that you find investors in a distant market, do direct mail campaign to that area and then be the middle man and connect the seller with buyer for a fee. It's simple, but not easy.

Best of luck,

Allen

@Ali Boone Thanks for the advice.

@Allen Maris The Central Valley is definitely an option. I don't go there often, but I definitely do have connections that could make visiting for business a little more palatable. Thanks for replying.

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