Norwalk, CA · Member since 2016 · 7 posts · 3 votes
Hello everyone, looking for some guidance here. I am a new investor looking to invest out of State but don't know where to begin. How do I find good deals? Partners perhaps? I do have an agent in LA but should I work with someone where I will be investing in? Any guidance is appreciated.
I would try to look into a few of the markets that other investors are posting about in the forums and see if they meet your criteria, e.g (Indiana, Arizona, Texas, etc.) and definitely look into reaching out to a realtor / property manager to see what to expect for cashflow / monthly payments and expected vacancies, repairs, etc. Definitely find someone that knows the market after you have decided on which market you are going for.
I was in your boat 5 years ago, CA is great for a lot of things, but not rental property. Checkout growing affordable markets in the Midwest and southeast. VestMap.com has a lot of good resources.
Hello everyone, looking for some guidance here. I am a new investor looking to invest out of State but don't know where to begin. How do I find good deals? Partners perhaps? I do have an agent in LA but should I work with someone where I will be investing in? Any guidance is appreciated.
Thank you!
Hi Luis!
Step 1: Connect with an exceptional seasoned investment specialized realtor in the area where you want to purchase. This is 1 of the most important steps, as an exceptional realtor will help funnel and guide everything else. They should connect you with the best lender reps, contractors, other workers down the road, run income VS expenses, and almost anything else needed within reason. On your first several+ deals, this is your main mentor- so pick a really freaking good one.
Step 2: Connect with the top recommended mortgage broker and get pre-qualified or pre-approved. This is free and this is your 2nd mentor, on the financing side. Depending on your financial situation, the goal is either cheap and less money (lower points and/or less money down) or lower monthly payments (interest rate, etc), to increase cash flow. If you need to go through a hard money lender, you should either flip 1-3 properties, or talk with your realtor about another 2-6 month exit strategy (involving refinancing and paying off the hard money ASAP).
Step 3: Chat with your realtor about properties that make sense, based on your goals/strategy, and start making offers.
Beyond that, continue to lean on your realtor, so that your property gets efficiently remodeled (if necessary), and either quickly flipped or on the rental market. If it will be a cash flow property, an investment realtor should have some great insight on boosting cash flow as much as possible. For example, I encourage my clients to lean on me as often as they like, to run STR cash flow audits. I dive in Online, as well as on-site walk throughs and provide specific suggestions for them to improve marketing, furnishings, home improvements, rental rate adjustments and anything else that would help, and what approximately the outcome should be, post-changes. Most of the time, changes are free or very economical and considerably boost their income.
Hi! I offer 15min strategy sessions to help investors zero in on where to invest based on their cash available and goals. Let me know if you want to schedule a call.
Hello everyone, looking for some guidance here. I am a new investor looking to invest out of State but don't know where to begin. How do I find good deals? Partners perhaps? I do have an agent in LA but should I work with someone where I will be investing in? Any guidance is appreciated.
Thank you!
Read "Long Distance Real Estate Investing" by David Greene. Lots of practical advice on how to find a market and build a team.
@Luis Sosa happy to help in Indiana if we can be of assistance. We invest in rural Indiana right now between Crown Point and Lafayette. Currently hold a couple apartment buildings, have done some flips and now under contract on another great deal. Happy to connect and chat about investing.
My opinion is that if this is your first investment property, do it locally so you can manage it yourself. I know the CA market is ridiculous. There is so much learning that happens with the first property. Out of state is difficult enough with experience, and without it you're at the mercy of a property manager that may or may not care about you and your investment.
@Luis Sosa I would advise finding an investor friendly realtor. You really want someone that invests in their market themselves and understands the numbers. They should be able to determine the COC, annualized return, estimated ARV of a BRRRR, accurate rent comps and more. The valuation and market value of a multi family property differs from a single family and you want someone that understands the distinctions if you go that route. If they just represent first time single family home buyers and aren't constantly finding off market properties and reviewing deals, you'll find a better investment through someone else.
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