Long Distance Investing

[Jose Martinez]

Hello fellow BP Investors! I am looking at investing out of state. I currently live in Glendora, CA. Is there any investors out there that are investing out of state that would give me some place to start? I want to know what to look for in a market to know it will be a good investment. Any help will extremely appreciated. 

[John Warren]

@Jose Martinez I have invested out of state, and the first thing I would look for is an area where you won't mind visiting often. Find a good rental market where you have family or friends, because you will be there at minimum a half dozen times per year. Also, depending on the scale of the project you may want to have someone to help you with some of the smaller property management details unless you are buying apartments, etc. 

I am a Chicago investor, but I chose the South Bend, Indiana market. I did this because I have a cousin there who I can catch up with, and because it is under a three hour drive. Once I chose the market, I focused on the broker relationships and spent a few days getting to know the market. 

After you find a property you are interested in, I think the next thing to focus on is your property management strategy. I manage my own properties in Berwyn and Lyons, but handling a property out of state is too much (even if it is only three hours). The management company will literally make or break your investment for you, so choose wisely. 

Hope that helps!