I am new to bigger pockets and real estate investing on the whole. But how to I begin flipping properties in another state?
Check out the podcasts, forum and blogs. While it hards to do it long distance flips there have been many successes here. So look around and than ask questions if you see stuff you like!
Real Estate investing is a business like any other business. If you wanted to start a restaurant, or a hotel, or a software company in another city where would you start?
Of course you would start with a team. Real estate is no different.
I currently have projects underway in six cities. In every case I started with a team on the ground in that location. A good deal badly managed is no deal. So it always starts with the management and the quality of the management.
Finding deals is the easy part. That comes at the end of the process. Once you have a team you will find that deals are not usually found. They are created. That means is that opportunities will present themselves that require creativity. This is not simply finding a single-family home at a 30% discount. Finding discounted properties works to a degree. But in a competitive market as more and more people enter that market, the profit margins will shrink. So creativity becomes a key differentiator.
When I partner with out of state investors, I challenge them to answer these 3 questions before they venture off into another state:
1. Market activity- Are you able to find inventory in your price range? Is there a high demand for retail properties? Can you get this locally?
2.Quality team members- Can you build a efficient team over X amount of time? Does a team that have these qualities already exist?
3.Travel threshold- If need be, How quickly can you respond to an issue? (over-the-phone, video chat, or face to face) How frequently do you mind visiting that State?
The last and most important thing when Investing from a distance is TIME. Take your time interviewing your team members, studying market trends, and measuring how each member follows up. Please dont rush, think about it as if you were dating each team member. You wouldnt "got to bed" with them on the first night, so dont hope into a JV/ partnership over a few conversations.
Old post, but I'm doing the out of state investing. First question, have you lived out of state and you know the area that you want to invest in? If possible network with your friends on FB, get a lay of the land you'd be surprised on the their areas local opportunities. Their your friends, they'll tell it to you straight. Good luck
When you establish you team for flipping out of state. You need to trust them with your life. You need to make sure they really know the market. I would recommend you get a real estate attorney in that state you are flipping in.
What is the procedure for searching and purchasing out of state multi-unit properties. I know how to choose a realtor, a general contractor for inspection and estimating and a management company. Do I need an out of state RE Attorney or does my local one work? What is everything else that has to be taken care of.
If you're beginning your RE investing career....my advice to investing out of state is Don't. I am not sure why so many are fascinated with investing in real assets outside their area when investing locally is already challenging enough. (BTW this is coming from an very active investor in LA where its ultra competitive yet we still have strong deals in our pipeline.) But if you must, read Delon's comment above 3x.
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