Investing in another state

[Isaiah Sullivan]

I’d appreciate any thoughts or experiences people have on investing in another state. I live and work full-time in New York. However, I’d prefer to invest in property in my hometown of Georgia. Distance is my main concern. While I visit Georgia frequently, I don’t have benefit of being able to constantly check properties in Georgia neighborhoods because I live in New York. What advice do you have for investors looking to invest in markets they don’t live in? How much harder is it?

Thank you!

[Hattie Dizmond]

@Isaiah Sullivan

It's all about having a team on the ground you can trust. The fact that you're from Georgia seems like it would make that easier. You can get a good feel for neighborhoods from a single visit. After all, you probably already know where the areas of town are you don't want to be after dark. :) Those are excluded, before you ever get started. Then, use the local MLS tools to figure out what the median price & income are in - I'm guessing this is where in Georgia we're talking about - Atlanta. Pick areas where you can find the type of property you are looking for at the price point you're going to be comfortable with, in the neighborhoods you prefer. Let's say you come out with 6 neighborhoods. Now, take those six and figure out which of those 6 have the best rental returns, highest desirability/demand (maybe an exceptional elementary school people clamor to get their kids in), and which ones really spark your interests. Identify 3 areas, max, and start doing research on those areas. Schedule a visit and spend the weekend driving those areas and touring every open house listing you can find. Write down the # of every property for rent you can find. Call every one of them and find out what the property config is, how many square feet and what the rent is.

Now you have everything you need to know to invest in any market. Are you going to work with a wholesaler? Will you use the MLS? Can you find another investor to partner with? Or, do you have someone there you trust to oversee the work & process and check on the properties who you can partner with? There are lots of ways remote investing can work. It just depends on what you're most comfortable with and what level of comfort & trust you can establish with a local "team".

[Mark Shaffar]

I second that, I've been living and working in China while owning in Minneapolis. Having a good property manager is everything. 

[Tim Hackett]

I live in Florida and invest in a 2.5 hour flight once a month to see my properties. As previously mentioned it's all about good people on the ground. I have made purchases sight unseen (except online) based off my GCs and trusted realtors review of the property. We have built a good level of trust. It was hard to start but once going I found that the hardest part is missing being involved on site. Both know what my tolerances are for purchasing investments. (How much work, areas I like to target etc.) oh and once I've made the purchase I've been on a flight most weekends to over see what's happened in the last week.

Know the area, find people you trust. It's difficult but do-able. Good luck. Last piece of advice- in order to maintain that level of trust it works both ways. If I say I will be there Saturday to pay someone, I'm there. They have to trust me as much as I trust them.

Tim

[Steven Segal]

All good comments above. It is about having the right team in that area. I live in Florida and invest a lot in Milwaukee. My biggest issue I had was with property management. My first PM was awful. My new PM is helping me find properties and then allocate part of his commish to PM - good deal for both of us. When it comes down to it, nobody cares about your money like you. This leads me to another idea: one thing I am doing is getting a partner in that area. We each bring different things to the table, and I know I have somebody who has their money on the line watching my investment. Tough, but doable. Good luck! 

Steven

[Todd Trader]

I've been in Real Estate 20 years in the Atlanta metro. I focus my efforts mostly Cobb County. If Cobb County, N. Fulton and/or parts of Cherokee or Paulding County is where you'd like to invest. Reach out to me at [email protected] 

[Jerry Padilla]

@Isaiah Sullivan 

Investing out if state is a great way to go. There are a lot of investors on here investing in Atlanta. Actually one if the P.M. I know here in NY invests in Atlanta and manages himself. Getting a good P.M. Is key 

Turnkey-reviews.com

Is a great site to search for property managers as well as here on B.P. Along with reading personal references on their page. 

[Isaiah Sullivan]

I appreciate all the thoughtful responses. It’s a lot to think about so I need to develop some actionable framework and timeline. Below is my plan of approach. This is a rough draft of me thinking on the spot. I would appreciate any additions or subtractions. The goal is to have my first investment property by 12/31/2015.

• 1.Decide on the areas in Atlanta I want to focus on. Ideally 3-4 neighborhoods. (April 1 – April 11)

• a.Narrow down neighborhoods

• b.Decide price points

• c.Decide types of properties

• d.Develop framework for narrowing town investment targets

• 2.Interview/identify realtors to partner with. (April 8 – April 17)

• a.How many would be ideal? 2-3? What’s the best way to source them? I think this step is mega crucial and could make or break the entire process.

• 3.Visit Atlanta (April 22 – May 1; will be on vacation)

• a.Drive through selected neighborhoods

• b.Participate in open houses

• c.Network with seasoned investors over coffee/lunch

• 4.Reflect on findings and decide next actionable items.

[Bhekizwe M.]

proceed with caution.Your knowledge of Georgia works to your advantage.teamwork is best.