Flipping out of State/Midwest contacts?

18 Replies

Hello,

I am new to BP and real estate investing. I live in Alaska and currently buying my first four-plex to hold for passive income. I really want to start flipping houses, but it takes a lot of cash to get into homes up here not to mention the high construction costs. I am originally from the Midwest and considering investing out there, but concerned about doing a flip with all that distance. I would have to build a team I trust out there, but don't know anyone in the business in that area.

My question is has anyone had success at flipping homes from a distance.

What are your feelings regarding the markets in the downriver Michigan area, Ohio and Indiana? I am from Michigan and have family in Indiana, so I am considering focusing on those areas.

Does anyone have a referral for a realtor, investor or contractor in these areas that are willing to work with an out of state investor?

thank you, Ann Marie

I think you're on the right track Ann. There's definitely people that invest in buy and holds and flips from a distance. Build up the contacts here on BP and you'll have a team in no time... well maybe a bit of time... 

Start small and then scale up as you gain experience.

@Ann Marie Garber  welcome to the site.

Hi @Ann Marie Garber  

Welcome to BP!!

I am investing in NW Indiana (Lake County) area. I am doing mainly buy and hold investments. I live in Chicago, but hold all of my properties in NW Indiana (about 30-45 minutes drive from downtown Chicago).

As for flipping properties in this area, it has gotten a little competitive to find a good property to flip. There are still good deals for buy and hold, but the flip market has dried up somewhat. Most of the decent properties that hit the market get multiple offers and in some cases are taken by an individual who is going to do most of the work on the house himself and thus can afford to pay a little higher price.

What part of Indiana do you have family in?

If there is anything I can help you with in Indiana, please feel free to let me know.

Thanks and Best Regards,

Sharad

Thanks Sharad, Michael and James.

My family is mainly in Peru and Indianapolis.

@Shawn Holsapple  is a big wholesaler, agent/broker, and investor in the Indianapolis market (and believe he has experience with out of state investors). You might reach out to him.

This post has been removed.

Originally posted by @Ann Marie Garber :

Hello,

I am new to BP and real estate investing. I live in Alaska and currently buying my first four-plex to hold for passive income. I really want to start flipping houses, but it takes a lot of cash to get into homes up here not to mention the high construction costs. I am originally from the Midwest and considering investing out there, but concerned about doing a flip with all that distance. I would have to build a team I trust out there, but don't know anyone in the business in that area.

My question is has anyone had success at flipping homes from a distance.

What are your feelings regarding the markets in the downriver Michigan area, Ohio and Indiana? I am from Michigan and have family in Indiana, so I am considering focusing on those areas.

Does anyone have a referral for a realtor, investor or contractor in these areas that are willing to work with an out of state investor?

thank you, Ann Marie

 Hi Ann Marie,

It is possible but the main emphasis needs to be on establishing the right and trustworthy people on ground that will happily assist.

I flipped a few properties while still living in Australia but it took me many sleepless night due to the time zone difference and networking for over 18 months until I found the right people for the job.

Michigan and Ohio are 2 great markets.

Thanks for reading and have a great day.

@Ann Marie Garber  - Have you listened to J Scott's podcast about managing flips from out of state?  

http://www.biggerpockets.com/renewsblog/2014/03/27...

I am currently buying out of state and it is a challenge even doing that.  Building the right team and having somebody you can trust would be the first and hardest step IMO 

The most important thing is to have boots on the ground.  If you're wanting to invest out of state, make a relationship with someone who can at least take a look at the property for you.  Whether that's family or a business that you're working with, it is hugely beneficial to partner with someone who has local area knowledge and can lend insight to your decisions.

Ann Marie welcome to biggerpockets

build....build a team.....team ( trust is the key factor )

@Ann Marie Garber 

Congratulations on making the decision to invest out of state.  I am an active wholesaler on the ground in Indianapolis.  If you need any advice about neighborhoods, or would like to learn more.  I'm here to help!  I'm also open to driving a house for you if you find one you're interested in.  I'd be happy to take a look at it for you being that your in Alaska. Just PM me.

I recommend you work with a licensed real estate agent that understands investors in the market that you are looking at getting into.

Welcome @Ann Marie Garber !

Like all remote projects, the team on the ground is the most important element of the entire process. I struggle, at times, to keep a flip going right here were I live - let alone trying to manage it from afar.

I did, however, buy my first rental [and rehabbed it] here in Indianapolis while I still lived in Calgary, AB Canada with success - all due to the great property manager and team that I had assembled prior to the purchase.

@Cary Trusty thank you for the kind words. Yes, I specialize in out of State investors and [as mentioned above] have felt their pain first hand.

Hi @Ann Marie Garber

I've only flipped from a distance (Chicago and Orlando). There's advantages and disadvantages, but sometimes your local market kind of forces you to invest out of state - or in my case, out of country :)

As others have mentioned, forming a good team is absolutely critical. You have to make sure you can do as much due diligence as you would if you were local - you'll just have to rely on your team to be there in person.

Good luck

Larry

@Ann Marie Garber   I think those are very good places to start looking.  There is a very nice group of SE Michigan investors on here, and I work on the West side of the state (Grand Rapids/Kalamazoo).

If anything, I would check references like crazy.  For instance, I know a person that will run a whole job in Grand Rapids, and I would barely need to check on it.  BUT... I found this person through family, and then checked references before even starting to work with them.  So perhaps start with the 'family' breadcrumb, and see if you like what you find.

Otherwise, go with the people on here that can start you in the right direction.  Do your due diligence, and you should be all set.  Happy hunting!

@Ann Marie Garber hello! I would love to here how your experience with this has been. I'm in somewhat of the same boat , I'm from Ohio and want to flip there. I can go back once during the flip for about two weeks but am not sure I can do much more than that. 

@Larry Smet I would love to know more about your process of flipping from a distance. Do you visit the site at all and if so when during the project? How do you find contractors? 

Hi @Carrie Giordano

Sure, I'd be happy to - drop me a PM and I can answer any questions you may have. 

I generally don't visit any of the properties - that's what the team is for. ;)

Don't get the wrong impression - it's not that out of state investors don't stay on top of their rehabs, we just need to do it in a different way.  

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