Out of state investing

[Robert Arroyo]

Like many others on BP I'm new to the RE world and I'm looking for guidance on how to execute a successful out of state deal on a multi-famIly unit so I can achieve positive cash flow that I can use for future investments. This would be my first property owned (personal or investment) so I do have some concerns on what to expect such as: Finding a realtor in the area of investing (east Texas for this specific example), also finding a reputable general contractor if any repairs come up, and any referrals on real estate management companies? I have an investing partner which I trust entirely, we both make a comfortable living but want more in life. We are both located in CA and are curious as to how these out of state deals are done (such as getting approved for the loan, do we need to travel out of state in order to process paperwork for the loan? how many times do we need to travel out of state before the deal is finalized?) I ran the numbers and it looks like it could be a valuable asset and potential good starting point for a first time investor. Any advice or information would be greatly appreciated thanks in advance!

[Aaron H.]

Best advice I can give is to click "Store" at the top of the page and buy David Green's new book here on BP, called "Long Distance Real Estate Investing". It's very good, and will answer all the questions you have. Absolutely worth purchasing.

If you set it up right, you don't need to travel out of state at all. You'll likely want to on your first deal just for peace of mind, but it's not a requirement for any of the steps you listed.