Real Estate Broker · East TN Loudon/Lenoir City/Tellico Village · Member since 2014 · 363 posts · 222 votes
7y
Out of state investing.
When I first started it was the same as it seems to be now. Sadly.
So I blazed my own trail. LOL because in SoCal where we lived my small 40K wasnt going anyplace.
I decided to invest within driving distance of a day. 8 hrs and so bought 2 properties in St George UT. Rented them right away and made solid 15% return cash on cash. I also bought 2 Long term rentals in Huntsville,Al and have those with a PM sight unseen. I worked primarily off the numbers.
Now flash forward 5 years and Ive sold the original investments for a hefty profit and exchanged those for 6 in East Tn and 2 more in Huntsville. Im still always looking for the next deal.
My advice. Dont listen to NA sayers. Know what you want, do your research, know your numbers, make connections. Reach out dont be afraid to ask questions. For every one person who pushes you back there will be one there with a life line.
PM me anytime
Specialist · Riverside, CA · Member since 2015 · 6k+ posts · 3k+ votes
7y
@JaNae Anderson for out of state investing there is really no reason that the network has to be local unless you really need the face to face contact that it provides.
Investor · Vallejo, CA · Member since 2016 · 72 posts · 25 votes
7y
Advice on investing out of state. Speak to them about some of the challenges, success stories etc. I’m sure I can read through many post on this site but I would like to meet with some local folks who have done what I’m preparing to do. I haven’t narrowed down my market yet but I’m thinking about Alabama or Indianapolis @Matt K.
Advice on investing out of state. Speak to them about some of the challenges, success stories etc. I’m sure I can read through many post on this site but I would like to meet with some local folks who have done what I’m preparing to do. I haven’t narrowed down my market yet but I’m thinking about Alabama or Indianapolis @Matt K.
You'll find much better quality in both responses and networking if you come up with specific things you want answered and not generic stuff. What I mean by this is a challenge your facing and asking how to overcome it vs someone telling you what worked or didn't work for them. Real estate is unique in the sense that what could be valuable to me is a complete waste of time and or money for you...
In terms of markets, Indy should be easy to find people that invest in Indy but you'll find way more info on this site vs local. AL will be lot harder only because it's not as popular or discussed.
If you're just starting figure your budget and then find the "best" market for you that fits. But first thing is define what best means...
Investor · Vallejo, CA · Member since 2016 · 72 posts · 25 votes
7y
Thanks @Marisa R.. I appreciate your advice and recommendations. I’m taking things slow to make sure I learn and get things in order before I make a purchase.
Contractor · San Jose, CA · Member since 2018 · 262 posts · 407 votes
7y
@JaNae Anderson
I am a Bay Area resident who is solely an out of state investor. All of these comments are on point here. You need to narrow down your Market, build a solid team, fly down see the area, and do your due diligence.
If I can recommend something, I'd say analyze over 100 properties from all over so that you get a sense of how the numbers work in all different markets and keep educating yourself.
If you like to read, I recommend reading David's book "long distance real estate investing"
Best of luck,
Junior
@JaNae Anderson thanks for your post on this topic @JaNae Anderson as I live in Los Angeles and am looking to invest in the Houston, TX area which is where I am from.
Real Estate Broker · East TN Loudon/Lenoir City/Tellico Village · Member since 2014 · 363 posts · 222 votes
7y
Out of state investing.
When I first started it was the same as it seems to be now. Sadly.
So I blazed my own trail. LOL because in SoCal where we lived my small 40K wasnt going anyplace.
I decided to invest within driving distance of a day. 8 hrs and so bought 2 properties in St George UT. Rented them right away and made solid 15% return cash on cash. I also bought 2 Long term rentals in Huntsville,Al and have those with a PM sight unseen. I worked primarily off the numbers.
Now flash forward 5 years and Ive sold the original investments for a hefty profit and exchanged those for 6 in East Tn and 2 more in Huntsville. Im still always looking for the next deal.
My advice. Dont listen to NA sayers. Know what you want, do your research, know your numbers, make connections. Reach out dont be afraid to ask questions. For every one person who pushes you back there will be one there with a life line.
PM me anytime
Real Estate Broker · East TN Loudon/Lenoir City/Tellico Village · Member since 2014 · 363 posts · 222 votes
7y
@Emmanuel Fortune
That is what I did as one of my strategies, Also While we lived in SoCal I bought in Huntsville, AL areas I already knew. Its always easier to buy what ya know.
I am also now buying out of state not just in my market in Cincinnati, Ohio. Although I specialize in hotels and mid-size apartment buildings (50 units and up), the principles of out of state investing are the same, whether you want to do with Single family houses or apartments:
1. You got to know your market
2. You got to know the numbers
3. You got to go there - and build a team
4. You got to make a lot of offers because it's a numbers game
5. You got to be patient because you can't be in a hurry to find a good market and find a good deal in that market
Real Estate Professional · Brentwood CA / Dallas, TX · Member since 2016 · 185 posts · 146 votes
7y
@JaNae Anderson All things David Greene. Especially his episode on the BP podcast (he's now co-host) and offers tons of great tips beyond his book. He focuses on finding what he calls your core 4. Lender, realtor, contractor and property manager.
I am looking out of state for all the same reasons us Bay Area folks do, because it's crazy out here! haha
Rental Property Investor · San Diego, CA · Member since 2013 · 3k+ posts · 4k+ votes
7y
There was a dude from Australia who looked in our hot local submarket in Houston. My stuff there was too $ for him so I showed him some cheap stuff in a harder to manage submarket. But he wouldn't have been able to manage it from afar. So he asked if I'd partner with him. So I located a pile of junk with some good cash flow, we bought it together, with the idea that I'd manage it, and he'd be a quiet passive investor.
I wasn't really setup (reporting wise) to answer to a partner and wanted to manage everything using my main bank account (our software doesn't care what bank account its in, it accounts per property). Anyway, it all blew up and we went our separate ways.
But for him that very well could have been an 'out of country' property that ran great. I ended up keeping that property as cash flow for a few years. We bought it at $20k/door. I later refinanced it at $35k/door to get all my cash back and then some. A few months ago I sold it at $55k/door. The dude would have made a killing (~$1.25m) but he had to be an asshat.
okay -- I'm going off track. Point is, out of state, out of country, out of planet etc investing is no problem if you have a local trusted team in place to run things.