out of state investing

[Jack W. Wong]

Hey all,

I live in NYC and is a beginner REI looking to do out of state investing in SFRs in the 100-140k range. What steps do I need to take in order to get started? should i contact a agent first then lender or another person? For financing can I use a small bank lender from NYC or is it better to use a local lender in the state im investing in?

After conventional financing I'm planning to make a llc to protect my personal assets but I heard that banks wont lend to a corp. if thats true how else can i protect my personal assets?

I believe the people I need for my team are as follows:

My business team

Attorney

Accountant

My property search team

Real Estate broker

Property manager

My Offer team

Attorney

Lender/Mortgage broker

Contractor

Others:

Appraiser

Insurance agent

Property tax consultant

IS there anybody i'm missing or don't need?

[Damien C.]

@Jay Hinrichs 

This is an interesting conversation.

This statement struck me:

Sounds about right to me. The only issue I see is that the PM only "sort of" has skin in the game. Of course, if they are reputable, they want to do right by their clients and help them secure great cash flowing properties, which they can in turn manage for years to come. But regardless, the PM is not the party who is putting down 20-28k and mortgaging the property, or paying 100-140k cash (if we consider J Wong price criteria, for example). The other thing that concerns me is the potential for conflicts of interest. For example: perhaps one of their clients wants to unload a rental home; if the PM arranges the transaction, they potential profit regardless of whether it is a really a good deal for the investor. Probably a bad example, but surely something vaguely similar might occur (?). I’m just curious how one might implement some checks and balances on the management team beyond getting references and building the relationship, etc.

I think the reverse engineering, starting with the PM, is really smart. I’m just not clear how one "manages the manager" during the acquisition stage to really ensure the out of state investor (who I think is inherently vulnerable) is reasonably protected.