Specialist · Houston, TX · Member since 2014 · 11 posts · 5 votes
For people who successfully invest outside their market:
What is your process when investing outside your market? I'm guessing staying within my state is best, but do you have someone go look at the deal for you? Or do you just pull comps and ask for photos?
What other questions do I need to know the answer to before I consider investing outside my area?
...make sure I'm preapproved for financing in a place that services that particular market, connect with a turn-key rehab crew, inspectors, title companies that service the area, etc. What else?
My financial situation is that I have excellent credit, but not much cash; and I have a partner who has plenty of cash for a loan/to show assets, but not enough to pay for a deal with cash.
Investor · Scottsdale, AZ · Member since 2017 · 260 posts · 78 votes
9y
ALISON - Yes - all the things you mention you need to do. As for financing, I am a Hard Money Lender (HML) and I would recommend you and your partner TRY to get conventional bank pre-approvals etc, but in the long run, you will find that you come across a DEAL and if you don't jump on it, it will be gone, whether in or outside TX.
It does not hurt to use a HML to get a deal done and then try to get conventional financing to refi out of your HML if the debt service is cutting too deeply into your ROI. The best thing about HM Lenders is that a HM Lender will not do the deal with you unless it is solid - they give you the best 2nd opinion you can ever get whereas a bank (and their employees) just follow scripts. I reside in AZ and I invest in AZ as well as MO (currently), but am open to ANY location/property which makes sense.