Investing from out of town

9 Replies

I am currently living in SF and given where the RE market is here I am looking at out-of-town and to be clearer out-of-state deals.  Given this I have been focused on more turnkey type properties but wondering if others have had positive/negative experiences in opportunities requiring more substantial initial rehabbing.  What have you done to make things go as smoothly as possible while not being local?  Or what should you have done differently in hindsight?  Thanks for taking the time to chime in.

I’ve done this lots of people have done this. I’d just search on BP

There are a lot of good turn key companies out there. Just make sure you vet them out. There’s a good turn key company reviews website you can google and check out.

You could also build a team and go that route. That takes a lot more time and effort but in the end, there’s a lot more potential for profits. Assuming you have a great team.

Good luck to you!

@Kevin Lutz

Keep people accountable via phone and email. Ask what the plan is and follow up.

They are you employees.

Only work with proven people of recommendations.

Verify all repairs via pics or even video.

Double check vendors and get 2 to three quotes on stuff larger than 500 bucks.

My first property was local in Northern CA in 2008 as the state of the housing market in 2008 made the numbers work much better than they can now. I recently reached out to family and friends that invest out of state and found a mentor that helped me with my property search out of town. I already had an idea that the market in Ohio was something that aligned with my future investment goals so I ended up closing 3 months after my initial conversations with my mentor.

Do you have any family or friends that are in real estate and investing in our if state markets?

Spending a lot of time educating yourself in BP is a great step in the right direction! Best of luck to you!

Originally posted by @Kevin Lutz :

I am currently living in SF and given where the RE market is here I am looking at out-of-town and to be clearer out-of-state deals.  Given this I have been focused on more turnkey type properties but wondering if others have had positive/negative experiences in opportunities requiring more substantial initial rehabbing.  What have you done to make things go as smoothly as possible while not being local?  Or what should you have done differently in hindsight?  Thanks for taking the time to chime in.

Investing in a Turnkey property in another state is a great way to go when you live in CA. Many investors find it difficult to rehab/flip on their own when you live that far away or have a 9-5 job! That is where a Turnkey Provider comes in. I always suggest making sure they actually own the home first, renovate it, and manage it all in-house. You do not want to get sold some home off of the MLS.

Try looking at:

What to Ask When Working With a Turnkey Provider

and

How to Find the Right Turnkey Real Estate Investment Company for You

I am in a similar situation but in reverse. I own(ed) 13 buildings / 48 units. My wife and I decided to sell and offer to continue to manage the buildings for at least a year as part of the deal. A man from NY bought two of our buildings and we're on month 4 of managing for him. I personally find that I try extra hard for this man. I want him to be successful like I have. Part of that motivation is from my desire for him to trust us enough to buy more of our buildings later, but most of it is my being flabbergasted that this man bought these buildings without even looking at them and is entrusting me with his and his family's future. It feels sacred. This might not be true with all sellers of course, but I tell you about it in case you find situations like that and are considering taking advantage of them. Feel free to PM me and I can tell you more. 

Originally posted by @Kevin Lutz :

I am currently living in SF and given where the RE market is here I am looking at out-of-town and to be clearer out-of-state deals.  Given this I have been focused on more turnkey type properties but wondering if others have had positive/negative experiences in opportunities requiring more substantial initial rehabbing.  What have you done to make things go as smoothly as possible while not being local?  Or what should you have done differently in hindsight?  Thanks for taking the time to chime in.

 I would aim for smaller rehabs at 1st. Essentially just cosmetic type stuff. Don't go nuts & try to do a gut rehab with new contractors. Try them out on some smaller projects then move on from there.

When hiring contractors DO NOT just pick the contractor because they are the cheapest. Ask yourself why are they the cheapest? There is a reason that they cannot complete with other contractors using the same pricing as them. More often then not it's because the cheapest guy is not as sophisticated, reliable, well versed &/or dependable.

@Kevin Lutz  I am currently working with a couple out of town investors. I am working on a flip right now and moving into rentals shortly. Most important is to have trust worthy boots on the ground. It is also important to education yourself on the market and understand how to analyze deals for yourself. Let me know if you'd like to hear more about it or if you have interest in the Cleveland market.

When you decide which market you wish to invest, I advise don't just jump the gun. Take a weekend trip and get on a place and go view the city. Drive the streets and become familiar with the area. Google earth can only show you so much. You need to g out and get a feel for it yourself. You'll find out quickly the feel of the city and if it's for you. 

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