investing out of state????????

Question

I've been told that it's not a good idea to in vest in a property that is more then a hour away,  which makes since.  
How can people invest in real estate 1000's of miles away?  I know it is easy,if you put together the correct team,  but how do you know John Doe with the best investment opertunity isn't Joe Scamer? (in the camon's)  how can you tell if a company in on the up and up?  check the BBB in that area, maybe the aterny general, andything else?

Brian Schroeder · Answer

Tax lein's is one avenue I was going to look into that this year.  I did attend a tax deed sale,  but a lot of crap there.  unfortunately I got called out of town on the week of the tax lein sale.  Which was Oct 30.  so, I have another year to wait.  Any information on tax lein sales, I would like to hear as well.  I have asked my county building, and it sounds like the rules and guide line are in the lein list.  In which here in sangamon county il,  the list cost $200.00 is that average, a lot, or a little?  thanks                                                                                                                                                                                                             PS 
I am new to investing,  I have a lot of idea,  but with limited funds I'm not sure what to jump into.  I was looking a tax leins, tax deed,  and I am looking into a 4 plex.  I think I will go with the 4 plex,  I just have to figure out how I can finance it.  I don't know if I sould post this part of this message somewhere else.

Tom McGiveron · Answer

prowler,

what are you thinking of posting?  numbers on a property?

post where ever you want - the moderators will move it if they need to.  i wouldn't think posting numbers on a property in this "Starting Out" forum would be bad.   especially if you're "starting out."

Tom McGiveron · Answer

you know i keep running into this tax lien thing.

but when i start to read about them, it's like woooooowwww - alot is involved or at least it appears that way.

N/A N/A · Answer

It's a good idea to invest in your area first, the one that you know the most.  You could also get other people to do your due diligence for you, like a local realtor in the area.  If I have some money and I want to invest in a particular area or county, I would go on the tax lien route.  I invest in tax liens or tax deeds because you can't get "scammed" -- the seller is the local county government and everything is transparent/public records.  If you're gonna start that route, I suggest getting some good reading materials.  Type "tax liens" on Amazon to get some good reference books.

For local investing, you can do your usual flips, rentals, REITs, etc.

Tom McGiveron · Answer

what do you mean - know the company?  you mean the company selling the property?  or property management company?

here's what you need to buy property out of your area.

1. distressed property/seller
2. CASH/FINANCING
3. local real estate attorney who can do your closings
4. title company
5. inspector
6. contractor (if you won't be doing repairs)
7. information - from local businesses, chamber of commerce, local developer who knows the area
8. a realtor who can possibly hook u up with looking at other properties in the area
9. plane tickets to go view 30 - 50 properties over a few days.
10. CASH/FINANCING
11. realtor who will sell your investment property
12. options/flexibility to help sell the property quick.

my friend just bought a rental 8 hours away from where he lives....it's "cash flowing" for 300 a month so far (been 1 month).  i'm not so sure how much of the travel he's figuring into his "cash flow" charting - he's been up there twice already.  long distance rentals are tough.