Out of State Investing

Innovative Strategies
10yFollow

Out of State Investing

Account Closed
Contractor · Los Angeles, CA · Member since 2015 · 887 posts · 323 votes

Hello BP! 

I am beginning to consider out of state investing due to the capital that I have available. Was looking for help in this area. If any of you would be kind enough to offer advice as to how you accomplish this I would greatly appreciate it. I am thinking I would need real estate agents, contractors, and/or wholesalers to partner with in order to get this done. I am also wanting to know how you screen these people and any others I may need on my team to get this done. Once again I would appreciate any help I can get. Feel free to send me a colleague request with you contact info because I am sure this would be something to discuss over the phone and/or in person and not via text or email. Once again I would greatly appreciate any help you any of you would be able to give me.

Best Regards,

Jorge 

0Reply
30 views

Most Popular Reply

Account Closed
San Jose, CA · Member since 2015 · 4k+ posts · 3k+ votes
10y

First, California is a big state.  There may be no need to look outside of CA.  And second, you need to first figure out what you want to do, specifically, before you know who can help you accomplish it.

3Reply
See this reply in the discussion

29 Replies

Jump to latestLatest
  • Account Closed
    San Jose, CA · Member since 2015 · 4k+ posts · 3k+ votes
    10y

    First, California is a big state.  There may be no need to look outside of CA.  And second, you need to first figure out what you want to do, specifically, before you know who can help you accomplish it.

    3Reply
  • Larry F.
    Wholesaler · Puyallup, WA · Member since 2015 · 171 posts · 82 votes
    10y

    Reach out Jorge have some thoughts for you .

    1Reply
  • Account Closed
    OP
    Contractor · Los Angeles, CA · Member since 2015 · 887 posts · 323 votes
    10y

    @Larry F. 

    Thank you! I sure will!

    0Reply
  • Account Closed
    OP
    Contractor · Los Angeles, CA · Member since 2015 · 887 posts · 323 votes
    10y

    @Larry F. I haven't forgotten about you. I hope your offer still stands. Thanks. 

    0Reply
  • Larry F.
    Wholesaler · Puyallup, WA · Member since 2015 · 171 posts · 82 votes
    10y

    of course Jorge. any time

    1Reply
  • Mary Singleton
    Tampa, FL · Member since 2016 · 6 posts · 6 votes
    10y

    @Account Closed  be happy to help, what you are inquiring is my specialty, feel free to reach out 

    1Reply
  • Ryan Tucker
    Arlington, TN · Member since 2012 · 36 posts · 10 votes
    10y

    @Account Closed lots of people from CA invest in the Memphis, TN market and have good luck.  Reach out, I'm glad to help!

    2Reply
  • Alexander Price
    Investor · Gilroy, CA · Member since 2016 · 255 posts · 195 votes
    10y

    @Account Closed

    I just recently invested out of state, and plan to do so again. I would heed @Account Closed's words and find out if investing out of CA is something you really want to do. If so, start researching markets that interest you, fit your criteria and that may offer other advantages to you outside of real estate returns. Decide on your target market and figure out how you get in. For instance, some markets offer turnkey options which may be something that interests you. Others may have professionals that help you facilitate a BRRRR strategy remotely. Develop your network for your market and ask loads of questions.

    Good luck and PM me if you have questions. 

    1Reply
  • Account Closed
    OP
    Contractor · Los Angeles, CA · Member since 2015 · 887 posts · 323 votes
    10y

    @Alexander Price thanks for the tips. Do you mind if I send a colleague request in order to ask you a few more questions?

    0Reply
  • Account Closed
    OP
    Contractor · Los Angeles, CA · Member since 2015 · 887 posts · 323 votes
    10y

    @Ryan Tucker please see your inbox. Thanks. 

    0Reply
  • Ryan Tucker
    Arlington, TN · Member since 2012 · 36 posts · 10 votes
    10y

    @Account Closed I just sent you a reply.  Thanks.

    0Reply
  • Kathryn Bowden
    Flipper/Rehabber · Tucson, AZ · Member since 2016 · 114 posts · 18 votes
    10y

    @Account Closed, we are right on the Oregon/California border, in Oregon.  We are working on our second flip up here, but I wanted to include the Del Norte County area as part of our potential work area.  Did I hear somewhere that it is more strict in California in terms of needing to be a licensed contractor to legally do a flip?  Any thoughts or suggestions on this?

    0Reply
  • Account Closed
    San Jose, CA · Member since 2015 · 4k+ posts · 3k+ votes
    10y
    Originally posted by @Kathryn Bowden:

    @Account Closed, we are right on the Oregon/California border, in Oregon.  We are working on our second flip up here, but I wanted to include the Del Norte County area as part of our potential work area.  Did I hear somewhere that it is more strict in California in terms of needing to be a licensed contractor to legally do a flip?  Any thoughts or suggestions on this?

     Hey Kathryn!  I'm in Crescent City :-)

    I never dealt with this in CA, but I found the website that answers your question, but it's kind of confusing lol.

    http://www.cslb.ca.gov/Consumers/Building_Official...

    It looks like you can do the work yourself, if you intend to live in it for a year.

    Otherwise, you have to use at least a license tradesperson (then you're limited as to how many you can do per year).  I'm guessing you could get a license?

    Or, hire a licensed general contractor to do the work, and you're unlimited on how many.

    You might want to call them to clarify.  It wasn't clear if the owner could do the work if the owner was a licensed tradesperson?  I think so, but ?  It would be easier to get the tradesperson license, I think.

    I also looked at what's required to get a tradesperson license and it also gave me a headache lol.  I'd just call them.  Here's the contact page:

    http://www.cslb.ca.gov/About_Us/Contact_CSLB.aspx

    Good luck!  

    1Reply
  • Robert Smith
    Real Estate Consultant · Knoxville TN · Member since 2011 · 112 posts · 81 votes
    10y

    The kind of team you would want to build would mostly rely on what your end game and purchase strategy will be for the homes. If looking to buy and hold you would need many of the same members as a rehab and resale, however the mind set of those team members would need to be set up to see either way. I have done many deals in many states and have worked with others in and out of the US to purchase homes and resale or hold long term. Research the areas and call multiple agents. Get on craigslist and look up the investor deals as well as call a few investors looking to buy homes in the area. They are more then likely wholesaling homes so be cautious with the information you get unless you hear the same from 5 or 6 different people. Bird dogs are invaluable whether in your own back yard or in another state. As for screening your team, how did you do it when building your team for your local market? The hardest part is getting someone to call you back. Pitch you are looking to begin looking in the area but don't mention as an investor. If they will put the time and work into you in the beginning they should be rewarded. Look for hungry agents and members who know the market and area without voodoo math and fudged inspections. Straight up and honest is the only way to be in this business. Seeing that you are in LA, I actually have some investors from your area here with me now looking to buy and hold a few more and looking to find and close on a few here in the area before they head back home. Send me a request if you want to talk more. Good luck, this is the best place to start looking for more info.

    1Reply
  • Kathryn Bowden
    Flipper/Rehabber · Tucson, AZ · Member since 2016 · 114 posts · 18 votes
    10y

    @Account Closed, thanks so much for this information, neighbor, I have it on my list to study.  Meanwhile, we are working on our second flip up in Gold Beach, the opposite direction.  One thing is for sure, its' a beautiful drive.  :-)  

    1Reply
  • Bruce Scannell
    Rental Property Investor · Carlsbad, CA · Member since 2014 · 127 posts · 28 votes
    10y

    @Account Closed, I know your pain. Personally, I wouldn't and don't invest in California, for a lot of reasons. To invest out of state though, you definitely need a team. I invest in my home state of Michigan, but besides knowing the area somewhat, the only benefit I've received from having family there is a realtor in the family. The rest of my team has been put together out of necessity. As with most investments, you won't ever have all the answers and I think a leap of faith is needed. How bad do you want it? If you want it bad enough, and you buy it right, I'm sure you can figure it out, it might take a little longer sometimes since you're not local, but keep being persistent and don't get discouraged!

    Good luck,

    Bruce

    0Reply
  • Account Closed
    San Jose, CA · Member since 2015 · 4k+ posts · 3k+ votes
    10y
    Originally posted by @Kathryn Bowden:

    @Account Closed, thanks so much for this information, neighbor, I have it on my list to study.  Meanwhile, we are working on our second flip up in Gold Beach, the opposite direction.  One thing is for sure, its' a beautiful drive.  :-)  

     Haven't made it up to Gold Beach yet.  Crescent City has a LOT of vacant foreclosure properties you can get really cheap.  I'm not sure about their investment value.  I see more and more businesses going out of business, and some new ones, but it seems like the vacancies outweigh the new owners.

    I think here, to make a decent sale, you'd have to focus on properties that the prison employees would want, which would be SFH closer to the Fort Dick area.

    This town even keeps an open Section 8 list, and there is high turnover even in subsidized housing with Section 8 tenants - something you don't see most places, because it's so hard to get and keep Section 8 vouchers.  The town has some year-round long-term residents, but I think this town is mostly transient - in that, the majority of renters don't stay here long-term.

    And I see properties that have been vacant a long time.  And even most newly listed properties sit and sit, and are bank-owned because they were foreclosures.  I don't think this is opportunity, as much as a sign of a town that can't support home ownership.

    There will always be a population that loves it here and who will stay forever, but they aren't the majority and I don't see that changing any time soon.

    0Reply
  • Kathryn Bowden
    Flipper/Rehabber · Tucson, AZ · Member since 2016 · 114 posts · 18 votes
    10y

    @Account Closed, thanks so much for that insight on Crescent City.  It always looks and feels pretty "depressed" to me when I visit.  By that I mean economically.  Even my bank down there closed.  Not necessarily a glowing recommendation as an investment area.  :-)  Some day, that area will come around, as they aren't making any more beach towns, if you know what I mean.  :-)

    0Reply
  • Account Closed
    San Jose, CA · Member since 2015 · 4k+ posts · 3k+ votes
    10y
    Originally posted by @Kathryn Bowden:

    @Account Closed, thanks so much for that insight on Crescent City.  It always looks and feels pretty "depressed" to me when I visit.  By that I mean economically.  Even my bank down there closed.  Not necessarily a glowing recommendation as an investment area.  :-)  Some day, that area will come around, as they aren't making any more beach towns, if you know what I mean.  :-)

     LOL, must have been the BofA.  I think what could save CC is retirees.  You need people with an income that is not dependent on jobs - who also are willing to live in the boonies, and in a monsoon half the year LOL.  There are enough seniors who need cheap housing out there.  But, we would also need more/better healthcare, and more/better entertainment and shopping.  

    I'm not sure how many generations it would take to make CC a real "hot" beach town.   I guess anything's possible.

    0Reply
  • Kathryn Bowden
    Flipper/Rehabber · Tucson, AZ · Member since 2016 · 114 posts · 18 votes
    10y

    Yes, sure is - BofA.  I now use my mobile app.  :-|  Well the one thing that sounds sort of exciting about CC is that they're working on that airport down there.  Where something like United would fly in and out?  If that happens, it seems like it could really open the area up.  Yes, bound to be a hot beach town some day, but perhaps not in our lifetime.  :-)

    1Reply
  • Kathryn Bowden
    Flipper/Rehabber · Tucson, AZ · Member since 2016 · 114 posts · 18 votes
    10y

    @Account Closed, meant to tag you ....

    0Reply
  • Jeff Lipple
    Wholesaler · Utica, MI · Member since 2013 · 133 posts · 36 votes
    10y

    Hi @Account Closed I'm a full time wholesaler in Michigan.  I just recently sold my duplex to an investor in Colorado and am now selling another one of my personal rentals in Kalamazoo where rent is over 2.3% of purchase price.  Hard to beat some of these Michigan properties.  If there's anything I can ever do to help, let me know!

    0Reply
  • Jennifer Slaughter
    Real Estate Agent · Fort Collins, CO · Member since 2016 · 246 posts · 142 votes
    10y
    When we were considering out of state investing we started interviewing turnkey providers and researching pros and cons of different markets. When a tk provider would present us with a property we would call the police department to ask them about the neighborhood the property was located in because it wasn't in our interest to be in a war zone or bad area. When we were ready to pull the trigger we had our attorney review all the documents and we made sure we got references from the tk provider of satisfied investors. You can also interview other realtors and property managers to make sure you're getting fair market value for property price and rent estimates. So basically be diligent about due diligence!
    1Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    10y

    @Kathryn Bowden  its the state of Oregon that requires the licensure..

    you just either be a licensed developer or a licensed GC if you are going to buy rehab and resell even one property a year.. I suggest you call up to the contractors board in Salem and learn what you need to be a licensed developer.  this is what I am... Its not widely known but if you have a problem and someone turns you in its an automatic 5k fine.. and if there is buyer litigation you really can have a problem

    the nuances are

    Developer: you need not take a test you simply have to register your name or company.. you then have to get a 50k bond.. and you MUST have insurance.. Before they will issue the Developers license.

    GC:  this you must pass a test take continuing ed and be licensed bonded and insured.

    What happens up here IN PDX is the flipper follow their competition and when they see mom and pops competing against them they file complaints... especially the foreclosure buyers..

    and then you have the HML who will turn in any private investgor they see funding deals.. as its required to be NMLS licensed to do loans on any 1 to 4 unit regardless of purpose or if its to an LLC or what have you.. I am also NMLS licensed Plus a Oregon RE broker.. LOL... all licensed up so no one can take a pot shot at me..

    Podcast Guest on Show #222
    JLH Capital Partners51 Review
    WebsiteView Page
    2Reply
  • Kathryn Bowden
    Flipper/Rehabber · Tucson, AZ · Member since 2016 · 114 posts · 18 votes
    10y

    @Jay Hinrichs, I really appreciate your second and even more thorough post about this topic. Thanks to you, I have already called the State and I personally will be working on getting our GC license (will be setting up our LLC to cover us both), while Brian continues to work on our first official flip. Now that I have thoroughly assimilated this reality (which initially bummed us out), we have decided it will behoove us on several fronts to be sure we're doing everything on the up and up. Regardless of a possible $5,000 hit, we just want to be covered and not feel like we're skulking around or have something to hide. The other plus is it will cover us if my husband wants to do an excavation job or make a cement countertop for someone (his new passion). Basically, we will have other income options should we ever need it, which is a good feeling of security. We'd also be covered with insurance and a bond. I mentioned we have a relative in Oregon who does not have their contractor's license who does flips. I spoke to him about this on a visit this weekend, and he didn't actually know this and they've done many many flips. I got the feeling he really just didn't want to know it. But I think it got him thinking. Anyway, much appreciated that you brought this to our attention. It's a hassle and an expense but we are serious about what we're doing, and will be well worth it.

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free