Remote investing advice -generally or Springfield MA

12 Replies

Hey guys,

I am thinking of investing in a multifamily property 2 hours a way from me.  I am in Boston and I am looking at Springfield MA.  I am considering having a real estate agent video tape/vid chat house showing, have an inspector inspect the house (without me), I would go there for the closing of course, but maybe deal with minor upgrades like flooring or cabinet upgrades as remotely as possible and finding a property manager to take care of it.  Has anybody ever done that or have any advice, particularly on finding good property management?

Thanks!

An

An.

I invest out of state all the time and do it from thousands of miles away. It definitely can be done and there is no reason for you to ever visit these properties. Of course if you have the right team in place. 

The PM is the biggest factor of this of course and you'll have to make sure to vet these people as well as you can. Ask for referrals and check them. Meet them in person, see their office, etc. 

Antoine Martel

Originally posted by @An Duong :

Hey guys,

I am thinking of investing in a multifamily property 2 hours a way from me.  I am in Boston and I am looking at Springfield MA.  I am considering having a real estate agent video tape/vid chat house showing, have an inspector inspect the house (without me), I would go there for the closing of course, but maybe deal with minor upgrades like flooring or cabinet upgrades as remotely as possible and finding a property manager to take care of it.  Has anybody ever done that or have any advice, particularly on finding good property management?

Thanks!

An

Hi An, this is EXACTLY what I do. I have investors as far away as Washington ( I am in CT). I identify target properties that meet their goals, discuss the different properties with them and go see a few of them on their behalf. I walk through each unit with a wide angle go pro lens and point out deficiencies and benefits in each unit I go through. I then upload the video to a cloud service and send them a link to all the videos for their review. 

I encourage the buyers to come out for the inspection, but its certainly not "mandatory", per se. All depends on how comfortable the buyer is. I serve as their buyer agent through the process, and then take the units into the property management side of the brokerage (if they are interested). I work primarily with out of town investors at this point. 

If you have any questions, don't hesitate to reach out and ask!

Filipe Pereira, Real Estate Agent in MA (#9557050) and CT (#0807610)

    I always visit the property before buying it. Usually 2 or more times. Feel the neighborhood, location, tenants and judge the property condition. Get to know the area.

    You can find a PM and contractors and meet them while there I realize others might successfully buy without a visit but I always feel like the trip is worth it for the insights and clarity I gain from the visit. Especially if it’s 2 hours away it’s not such a big deal to see it prior to a significant investment. Hope this helps you.

    @An Duong 2 hours? Get in the car and go see it! How much is your time worth? 100/hr? For $500 of your time, you could save yourself tens of thousands of dollars and hours of headaches if it is a bad deal.

    @An Duong

    Springfield is not a bad drive from Boston! 

    You can absolutely do this.... I would reccomend you learn as much as you can about the area first 

    Property management will come after you have the deal under contract, so I would first focus on how you want to finance the deal and select your target market 

    @Antoine Martel What are some important must do's if not visiting the property and any suggestions for finding the right team?

    I imagine yelp and referrals from my real estate/mortgage person.

    @Richard B.   @Matt Leonard @Steve Bracero Right I will visit at least once.  I have a friend in Springfield and am looking at Trulia crime heat maps so I intend to just buy near wear he is since he says his area is nice and crime stats are low in that area.  His family is there to teach at one of the colleges so hoping to get Educator tenants.

    @Steve Bracero Financing is being worked on now. Property is in my range to buy straight cash but I will use leverage and just put down 20% maybe try to do a BRRR.

    Originally posted by @An Duong :

    @Antoine Martel What are some important must do's if not visiting the property and any suggestions for finding the right team?

    I imagine yelp and referrals from my real estate/mortgage person.

    @Richard B.   @Matt Leonard @Steve Bracero Right I will visit at least once.  I have a friend in Springfield and am looking at Trulia crime heat maps so I intend to just buy near wear he is since he says his area is nice and crime stats are low in that area.  His family is there to teach at one of the colleges so hoping to get Educator tenants.

    @Steve Bracero Financing is being worked on now. Property is in my range to buy straight cash but I will use leverage and just put down 20% maybe try to do a BRRR.

     Referrals are key. But also meeting them in person. Talking to investors who have a large amount of properties with them. I tend to stay with PM's that have <500 properties under management, they're more hands on and actually know whats going on with their properties. 

    Antoine Martel

    @An Duong , why do you need to go to the closing? Unless you want to go, you can close anywhere.  Yesterday I closed in Tennessee...while sitting in an office in Fort Collins, Colorado.  

    As far as building a team goes, great questions.  I like to start with a good old fashioned google search, you can plug in the name of the business you're looking at and see if anything negative or positive comes up, there are also scam and forum websites where you can make sure there isn't anything alarming.  

    From there, interview PM's.  Ask your most important questions. Get referrals, ask them your most important questions. Check them out on BBB.  

    You can invest anywhere from anywhere and what will set you apart is having expert boots on ground nearby your investment. I have built remote teams in different areas, feel free to reach out if you have more questions.

    I think this is a reasonable distance you could go with a PM or do it yourself. From managing about the same distance Ma to RI I would advise you do what you want to do. I would be on site for major rehab estimates,initial inspections if you can so you know what you are buying. Get a good HVAC and plow guy. and a good plumber. Not sure if your local friend will do handy work but consider that too.

    Colleen F.

      @Jennifer S.Thanks for the tips you are right I don't have to be there!!!  Good tip.  What types of questions would you ask beside references, amount of properties managed, servics and years of experience?

      @An Duong , good questions! I like to think in terms of best and worst case scenario.  Consider what you will want to know about how the PM will lower your expenses, AND what they will do to protect your investment if you have tenant issues.

      1. Does PM have a full time rehab/maintenance team or do they outsource/hire subs?

      I would want a full time team, this will lower your expenses and shorten the amount of time it takes for work to get done.

      2. Does PM have in house attorney and accountant?

      3. How does PM handle collections and do they have a collection department? 

      When I am investing out of state, I want a one stop shop.  I don't want to have to hunt down subs or find an attorney out of state in the case of eviction, etc. I know some investors prefer smaller PM companies, but I want the economies of scale in my favor because the PM will be more likely to offer different services all under the same roof and have professionals to save you money and care for all of the needs for your investment.

      Hello An, if you dont know Springfield, it doesnt make a difference if you drive here or not. You need to find someone who guides you honestly. Springfield is very diverse, i live and invest in Springfield. You said your friend lives by one of the colleges, so  youre thinking of renting to educator tenants, unless they teach at Western New England University and live on one side of the univ, then is doable, all the orher colleges are in pretty hot areas and educators usually live outside the city. Note that if it is in the area surrounding the college mentioned above one side is great, the other side not so much. I also find my fellow agents to be somewhat comfortable and being open and willing to list, but somewhat frustrating when it comes to showing low end properties, because i live and invest in this area i got my license so i dont have to deal with that, so i only use my lic for my own investments. Good luck and let me know if you have any questions.

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