Long Distance Investing....Good or Problematic?

Question

I currently own one property in Georgia and plan to look for others in Ga or SC, mainly because of the price point. I also have an affinity for the area because I grew up down there and plan to return in the future.

The problem is I live in Northern Virginia and do not really have anyone to represent my interest down south. I also feel like I am not able to compete for any hot deals because I can only go down there once a month.

Considering the travel costs for scouting properties and the fact that I most likely have to hire a property manager for my rental property am I approaching this the wrong way?

If not, what is a better way to invest in a market in which you do not live?

Sidebar: I have considered finding a partner in my areas of interest, but I would need to know this person and I have the same style, vision, and work ethic.

Any suggestions?

Jeremy Dyer · Answer

@Rod Smith I am a local agent in Atlanta and I work with many investors that are out of town and even out of country.  I am their eyes and ears here in Atlanta when they cant be here physically.  I walk thru properties and take pics and videos or even video chat while walking a property they are interested in.  After purchasing the deal I always follow up and even check up on the rehab work being completed.

Jerry W. · Answer

@Rod Smith , you might also get in touch with @Jack Tucker on BP  You might need to look him up as I cannot link him.  He started a company selling turnkeys and doing management as well.  Just yesterday he posted a deal that looked very good.  If nothing else he could steer you to good areas.

Chris Clothier · Answer

Hey @Rod Smith  - I would reach out to Ken Corsini for property in the Atlanta area.  He is a high quality guy with a small, but really good company.  You can look him up online and he may be here on Biggerpockets.

Marco Santarelli · Answer

@Rod Smith: Yes, of course it can be done.  Hundreds of investors invest outside their home market to get better returns, or simply to be able to afford buying good cash-flow properties.

The key is having the right TEAM to help you source or find good investment property within your target market(s).  Your team will also include competent professional property managers as well as home inspectors, lenders, etc.

Don't feel that you need to do everything yourself, because that's really not possible or practical.  Use the resources and people here on BP as well as ask other successful investors you know who they recommend.

You may enjoy my 10 Rules of Successful Real Estate Investing.

Continues success!

Rachel Leonard · Answer

Hi @Rod Smith. If you want to find your own deals without using a turnkey company then I would recommend finding a local partner. If you visit GA regularly how about going to some local REIAs or start talking to folks on here in your target area? You could still do a lot of the work remotely in locating suitable properties.

Ali Boone · Answer

Howdy. I live in Los Angeles and bought all my properties in Atlanta a year and two ago. It's very doable, you just have to have the right teams. Buying in Atlanta is harder than a lot just because of the chaos that ensued there in the last 2-3 years with investors and hedge funds eating up so much inventory, but there are still deals there for sure.

Rod Smith · Answer

Thanks @Jerry W. , @Jeremy Dyer , & @Chris Clothier

for your responses. I will follow-up on the information provided.

Rod Smith · Answer

Thank you Rachel, Rodney, & Marco for your insightful comments! You all made very good points. Based on your input, I may be headed in the right direction.

Rodney Getsy · Answer

@Rod Smith ,

It can be done.  However, take your time and get trusted connections local to the area you want to invest in.  I can tell you from experience many things can go wrong and your not in the area to correct it fast enough.

Incompetent or shady property managers that don't account for funds properly, use friends and family to do the handy man work which over charges, the list can go on.  And your not there to check up on the work, etc.  Major repairs, your stuck with who the p.m. uses / recommends.

Lot more I can say that has  happened to me while absentee.

Definitely, find a partner that you can trust.

If I were to do it again, I wouldn't.  I'm still trying to recover by liquidating my properties....

Rod Smith · Answer

Thanks for the feedback Ali Boone.

So did you buy and hold? If so, did you just turn them over to a prop mgmnt company and wait on a check every month?

Long Distance Investing....Good or Problematic?

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