Flipper/Rehabber · Los Angeles, CA · Member since 2019 · 23 posts · 17 votes
Hey,
Long time follower of BP, first time posting.
I live in Southern California and am interested in investing out of state. The numbers locally just don't make much sense for what my goals are (strong cash flow top priority, appreciation second). Among the core members of the team (agent, lender, CPA, attorney, etc.), which should I reach out to first?
Also, which one(s) can work outside the state where the property is at? In other words, would a CPA or attorney be best located in said state or can they be located near me in So Cal?
@Tadeh Vartanian Don't forget about locating a great property manager for your team. They can either make or break your investment and they have a tremendous amount of knowledge about the market, inventory, rent ranges, what tenants are looking for, where the desirable neighborhoods are etc. A great investor friendly agent is very helpful with some of this too, but I've found more success working with property managers to acquire much of this information and the good ones have been very willing to scope out properties, take videos for me, and give me feedback. If you will be using that PM to manage the property, they are incentivized to find a good property that will attract solid tenants because they will be the ones managing it down the road.
Hi @Tadeh Vartanian and congratulations on your first BiggerPockets post!
I'd recommend you first identify a local acquisitions manager, typically a real estate agent, who can help you arrange to identify, screen, evaluate, and inspect properties while you are out of state. They should bring a deep understanding of the local investment real estate market and be responsive enough to pounce on great opportunities quickly.
In my experience, you will also be far better served if at least your CPA and attorney both do significant business in the same state where you are investing.
@Tadeh Vartanian Don't forget about locating a great property manager for your team. They can either make or break your investment and they have a tremendous amount of knowledge about the market, inventory, rent ranges, what tenants are looking for, where the desirable neighborhoods are etc. A great investor friendly agent is very helpful with some of this too, but I've found more success working with property managers to acquire much of this information and the good ones have been very willing to scope out properties, take videos for me, and give me feedback. If you will be using that PM to manage the property, they are incentivized to find a good property that will attract solid tenants because they will be the ones managing it down the road.
Thanks for that suggestion. A great agent, from what I’ve read as well, is very paramount to the success of out of state investors. I’ll start with that.
I’ve seen some CPA and tax attorney combo organizations, where the company does both. Seems more convenient for the investor to have all that in house.
@Tadeh Vartanian I also fully agree with @Scott Passman that the ideal arrangement is to find a great property manager who is also qualified and eager to perform the acquisitions functions I mentioned above.
Also, when you select your tax and legal pros, I strongly encourage you seek those who already have a sizable clientele of real estate investors who are doing what you plan to do. You don't want your accountant and attorney learning the real estate business on your dime!
Lastly, what markets are you considering? Depending on where you plan to invest, I might be able to make some recommendations.
Thanks Mitch! I’m looking into a few places that I’m in the process of narrowing down. Madison, WI or nearby cities is one. Another is Texas and a third possible in North Carolina.