Seeking advice on how to properly vet someone you may work with

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Seeking advice on how to properly vet someone you may work with

Kendra Mattson
Investor · San Diego, CA · Member since 2015 · 67 posts · 23 votes

I live in California, and based on some of the advice I got when I introduced myself, I decided to start looking seriously into investing out of state. How would you suggest building a team at that distance? How do you vet potential local partners/agents, etc.?

I've listened to many of the podcasts, and they always say to be sure to do your 'due diligence' before working with someone, but what would that entail?

Thanks!

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Ryan Dossey
Real Estate Broker · Indianapolis, IN · Member since 2014 · 3k+ posts · 2k+ votes
11y

Exactly! You're looking for a partner not a "pitch". 

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  • Melissa W.
    Interior Decorator · Costa Mesa, CA · Member since 2015 · 76 posts · 35 votes
    11y

    Hello,

    Welcome to Biggerpockets.

    The best way to do that is to ask questions, and to do a google search on them.  Google them by company and by name.  

    I would start with finding a reputable Investment Realestate Agent in the area that you would like to invest.  Once you find one, then ask them if they work with a good title agent.  A title agent is very important in this business.  Usually a great investment realtor will have all the resources you will need to start investing in real estate.  That's how I got started, and I became good friends with mine.  

    Hope that helps you.

    Melissa

    1Reply
  • John Santero
    Investor · Chattanooga, TN · Member since 2012 · 227 posts · 114 votes
    11y

    Research the local REIA group. Connect one of their board members and see if you can get names of some people who are Pros.

    I thing a realtor who has experience with investors is a good thing to source. See if you can get some of the local RE mags and review who advertises in there.

    I would call a local title company and ask if they do double closings or lease 2 own or land trust closings- that will tell you they are knowledgeable on investor deals

    Maybe even a PM company can help too- If you are invested in Chatt Tn send me a line.

    Good Luck

    1Reply
  • Brian Gibbons
    Investor · Sherman Oaks, CA · Member since 2008 · 6k+ posts · 3k+ votes
    11y

    @Kendra Mattson

     I live in California and know some OH and IND reputable turn key suppliers.  They need private ira funding too.

    PM me.

    Brian

    1Reply
  • Kendra Mattson
    OP
    Investor · San Diego, CA · Member since 2015 · 67 posts · 23 votes
    11y

    @Melissa W. and @John Santero thanks for the advice, I wouldn't have thought to ask those questions! I should help a lot. And John, I just started considering out of state investments, so I haven't narrowed down my areas of interest yet. If I decide on Chattanooga, I'll be sure to let you know.

    0Reply
  • Jean BolgerPro Member
    Aurora, CO · Member since 2012 · 2k+ posts · 1k+ votes
    11y

    For people like property managers,real estate agents, turnkey operators  be sure to ask for references from current and past clients, especially other out of state investors. 

    1Reply
  • Kendra Mattson
    OP
    Investor · San Diego, CA · Member since 2015 · 67 posts · 23 votes
    11y

    @Jean Bolger Thanks, that's a good reminder. I think I'll make a list, contact a bunch of options, and see who can answer everything correctly and confidently refer me to their other clients.

    0Reply
  • Account Closed
    Real Estate Agent · Las Vegas, NV · Member since 2015 · 2k+ posts · 1k+ votes
    11y

    The best advise I heard besides solid references,financials, is by

    @ENGELO RUMORA Who says that you should email the party and tell them you are thinking of investing in the next year.If they stop communication then you know it could be a scam. The time frame gives both of you a chance to build a relationship of trust over time . Sorry Engelo I could not find the exact quote ( I do not personally know or recommend him)

    2Reply
  • Kendra Mattson
    OP
    Investor · San Diego, CA · Member since 2015 · 67 posts · 23 votes
    11y

    @Account Closed I heard a similar approach on one of the podcasts about finding a good person to work with long-term for multiple deals, but I never thought about it in terms of not getting scammed! Thanks for the advice

    0Reply
  • Ryan Dossey
    Real Estate Broker · Indianapolis, IN · Member since 2014 · 3k+ posts · 2k+ votes
    11y

    I would honestly look for people on here. Read through their threads. Ask for examples/references. This obviously works for more active members. If you go back and dig through my threads you can see my progression from "I dont have any money what do I do? - I closed my first deal!- I bought 2 SFR- Direct mail tips-current"

    Someone who has tons of posts it gets really easy to get a feel for them. Are they operating with integrity or walking the line? Etc.

    I personally don't love my local REI clubs so I advise against that method unless you want to be pitched things.

    1Reply
  • Kendra Mattson
    OP
    Investor · San Diego, CA · Member since 2015 · 67 posts · 23 votes
    11y

    @Ryan Dossey Thanks for the perspective. I don't want the person I'm working with to constantly be trying to sell me something. But I think I'd need to be a Pro member to do non-local searches for people. I guess I'll just have to read up on people as I run into them in forums.

    1Reply
  • Ryan Dossey
    Real Estate Broker · Indianapolis, IN · Member since 2014 · 3k+ posts · 2k+ votes
    11y

    Exactly! You're looking for a partner not a "pitch". 

    2Reply
  • Engelo RumoraBusiness Member
    Investor · Toledo, OH · Member since 2013 · 4k+ posts · 2k+ votes
    11y
    Originally posted by @Account Closed:

    The best advise I heard besides solid references,financials, is by

    @ENGELO RUMORA Who says that you should email the party and tell them you are thinking of investing in the next year.If they stop communication then you know it could be a scam. The time frame gives both of you a chance to build a relationship of trust over time . Sorry Engelo I could not find the exact quote ( I do not personally know or recommend him)

    haha

    Thanks for the mention Steven ;)

    All of the info is in podcast 89

    Podcast Guest on Show #89
    Oz Realty4.5368 Reviews
    WebsiteView Page
    1Reply
  • Chris ClothierBusiness Member
    Rental Property Investor · memphis, TN · Member since 2009 · 2k+ posts · 3k+ votes
    11y

    Hi Kendra,

    Here is a link to an e-book about buying out of state properties.  It is all about the critical steps you need to take to decide if out of area investing is right for you, how to choose the right market, how to choose or build the right team and how to protect yourself as you go!  Let me know what you think - 

    Best of luck as you get started!  Chris

    Podcast Guest on Show #224
    REI Nation4.576 Reviews
    WebsiteView Page
    2Reply
  • Kendra Mattson
    OP
    Investor · San Diego, CA · Member since 2015 · 67 posts · 23 votes
    11y

    @Chris Clothier Oh thanks that sounds perfect! I'll give it a read :)

    0Reply
  • Jimmy MoncriefPro Member
    Chattanooga, TN · Member since 2010 · 319 posts · 100 votes
    11y

    @Kendra Mattson If you ever come to Chattanooga - let me know.

    Love San Diego - I lived their when I was in the Marine Corps.

    Prices are pretty crazy their though...

    Podcast Guest on Show #55
    0Reply
  • Kendra Mattson
    OP
    Investor · San Diego, CA · Member since 2015 · 67 posts · 23 votes
    11y

    @Jimmy Moncrief Yes, I love San Diego. The prices are the only downside! Well, that and the terrible drivers, but that's another story. . .

    0Reply
  • Ali Boone
    Real Estate Coach · Venice Beach, CA · Member since 2012 · 6k+ posts · 3k+ votes
    11y

    I think one of the biggest/best things you can do is ask for referrals from other investors. Different people buy properties out-of-state different ways, so by asking around you can find out about those various methods and also find out who people have enjoyed working with.

    A lot of finding good team members depends on how and where you want to buy out-of-state. I've only invested out-of-state (I live up in LA) and I've definitely been able to pin who I really like working with, but again it depends on what kind of structure you want to work with.

    1Reply
  • Kendra Mattson
    OP
    Investor · San Diego, CA · Member since 2015 · 67 posts · 23 votes
    11y

    @Ali BooneYeah, that's true. It's always best to have a network to ask for referrals from. That's pretty much the phase I'm in now - growing my network by meeting other investors and learning how they invest. Everyone has such a different take on it!

    0Reply
  • Bruce May
    Lender · San Diego, CA · Member since 2011 · 664 posts · 231 votes
    11y

    @Kendra Mattson when we started investing we started in Indiana, then went to Atlanta. Before we did any investing in either I got on the Internet and found people working in those areas in the fields I would need for my team (Realtor, Home Inspector, Hard Money Lender, etc.). I then started calling everyone and doing some phone interviews with them which really helped narrow the field down on whom I wanted to see when I got to those cities. So I also recommend going to the city you want to invest in to meet the people you want to put on your team. They will also be some of the best resources for contacts as well, but do the research that was suggested by others and find out all you can about each person beforehand. Best of luck to you.

    0Reply
  • Kendra Mattson
    OP
    Investor · San Diego, CA · Member since 2015 · 67 posts · 23 votes
    11y

    @Bruce MayThanks for the advice! I do think meeting my potential team before making any commitments would help ease my mind a bit.

    0Reply
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