Out-of-state flipping- how do you go about it and is it even possible?
Member since 2021 · 6 posts · 5 votes
Out-of-state flipping- how do you go about it and is it even possible?
Most Popular Reply
Michael SmytheBusiness Member
Real Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votesYou'll need to spend a LOT of time in your remote market to find and train a great team - until you can trust them.
It's just how it works, unless you want to learn by getting burned.
Logical Property Management4.9457 Reviews
25 Replies
- 2yAndy SabischPro MemberInvestor · Jackson, MS · Member since 2021 · 660 posts · 561 votesYou can make money doing long distance flips but it is not as easy as the posts you see online would lead you to believe.
Personally, I would try to make it out to the area you are looking at investing in. Take a week and have an agenda laid out . . .see the areas to focus on and those to avoid. Plan to meet with some GCs and feel them out to see if there is a fit.
You have done the upfront work and found wholesalers in the area, do the same for tradespeople. Reach out and let them know what you are looking at doing - you will find some that love flippers for the steady work and others hate them - make sure you find the right one.
See if you can connect with some local REIGs and see what they are finding in terms or areas, market trends and most importantly, who they use for the trades.
Best of luck - 2yRemington LymanBusiness MemberReal Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
Quote from @Caleb Benedict:
Hello BP! I am interested in fix and flipping properties in the midwest- Cleveland, Saint Louis, Columbus and Indianapolis. I've been researching markets for months, and I have created this pipeline of great wholesalers from these areas. I just came across a deal today which looks absolutely incredible. However, the problem is that I live in NYC. I want to know from those of you who are flipping out of state in the cities I mentioned (or just out of state in general). How did you assemble a team? How do you know who to trust (which is probably my biggest fear)? Is it even worth it, or even possible, to flip properties when you live a thousand miles away? I know that the general wisdom is that you should always flip near you, but if the numbers are really good and you have some wiggle room, would you do it out-of-state?
Any and all help is appreciated and I am also open to any and all advice and partnerships. Thanks again BP!Caleb
I recommend you read this article on OOS investing. It explains the importance of creating your core four. You will need to get a local, rockstar Realtor, contractor, lender, and property manager.
https://www.biggerpockets.com/blog/core-four-real-estate-tea...
I invest locally in Columbus, Ohio - Investor · FL · Member since 2023 · 9 posts · 6 votes2y
Quote from @Caleb Benedict:
Hello BP! I am interested in fix and flipping properties in the midwest- Cleveland, Saint Louis, Columbus and Indianapolis. I've been researching markets for months, and I have created this pipeline of great wholesalers from these areas. I just came across a deal today which looks absolutely incredible. However, the problem is that I live in NYC. I want to know from those of you who are flipping out of state in the cities I mentioned (or just out of state in general). How did you assemble a team? How do you know who to trust (which is probably my biggest fear)? Is it even worth it, or even possible, to flip properties when you live a thousand miles away? I know that the general wisdom is that you should always flip near you, but if the numbers are really good and you have some wiggle room, would you do it out-of-state?
Any and all help is appreciated and I am also open to any and all advice and partnerships. Thanks again BP!Caleb
This is a great strategy that has worked for a lot of people I know, The reason is that it forces you to delegate that responsibility to another entity or contractor. The best way to approach it is by creating relationships with contractors from now on. If you can find a reliable one, he would probably know all the different types of handyman or contractors in the area. One thing, a good contractor is usually always busy so the sooner you start developing those relationships the better. I will allow you to have a test on labor/material costs. Also, make sure your numbers are accurate with the time of the year and this market.
Hope this helps.
John Garcia.
- 2yBill J FayPro MemberLender · San Diego · Member since 2023 · 216 posts · 209 votes
Absolutely possible, but riskier and more difficult. There are just some things that you won't catch without physically stepping into the project. Like @Remington Lyman suggests, building out your team will be the most important step. Most lenders will want to see experience before they lend on long distance flips as well.
- 2yJimmy LieuBusiness MemberReal Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votesHey Caleb, doing long distance flips can be challenging but it's definitely possible and worth it if the numbers align and you have flexibility! I have personally worked with a lot of OOS investor clients who have done successful long distance flips here in Columbus Ohio. When assembling a team, consider local real estate agents, contractors, and property managers. Building a network through industry events and online platforms can help. Establishing trust is crucial, so check references, ask for referrals, and consider visiting the area if possible. As a local investor and agent here in Columbus, let me know if you have any questions or want to connect!
Quote from @Caleb Benedict:
Hello BP! I am interested in fix and flipping properties in the midwest- Cleveland, Saint Louis, Columbus and Indianapolis. I've been researching markets for months, and I have created this pipeline of great wholesalers from these areas. I just came across a deal today which looks absolutely incredible. However, the problem is that I live in NYC. I want to know from those of you who are flipping out of state in the cities I mentioned (or just out of state in general). How did you assemble a team? How do you know who to trust (which is probably my biggest fear)? Is it even worth it, or even possible, to flip properties when you live a thousand miles away? I know that the general wisdom is that you should always flip near you, but if the numbers are really good and you have some wiggle room, would you do it out-of-state?
Any and all help is appreciated and I am also open to any and all advice and partnerships. Thanks again BP!Caleb
Jimmy Lieu, Red 1 Realty4.9124 Reviews - Member since 2021 · 6 posts · 5 votes2y
Quote from @Andy Sabisch:
You can make money doing long distance flips but it is not as easy as the posts you see online would lead you to believe.
Personally, I would try to make it out to the area you are looking at investing in. Take a week and have an agenda laid out . . .see the areas to focus on and those to avoid. Plan to meet with some GCs and feel them out to see if there is a fit.
You have done the upfront work and found wholesalers in the area, do the same for tradespeople. Reach out and let them know what you are looking at doing - you will find some that love flippers for the steady work and others hate them - make sure you find the right one.
See if you can connect with some local REIGs and see what they are finding in terms or areas, market trends and most importantly, who they use for the trades.
Best of luckHome great advice, thank you Andy! Have you tried doing it yourself before?
- 2yMichael SmytheBusiness MemberReal Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votes
You'll need to spend a LOT of time in your remote market to find and train a great team - until you can trust them.
It's just how it works, unless you want to learn by getting burned.
Logical Property Management4.9457 Reviews - Member since 2021 · 6 posts · 5 votes2y
Quote from @Remington Lyman:
Quote from @Caleb Benedict:
Hello BP! I am interested in fix and flipping properties in the midwest- Cleveland, Saint Louis, Columbus and Indianapolis. I've been researching markets for months, and I have created this pipeline of great wholesalers from these areas. I just came across a deal today which looks absolutely incredible. However, the problem is that I live in NYC. I want to know from those of you who are flipping out of state in the cities I mentioned (or just out of state in general). How did you assemble a team? How do you know who to trust (which is probably my biggest fear)? Is it even worth it, or even possible, to flip properties when you live a thousand miles away? I know that the general wisdom is that you should always flip near you, but if the numbers are really good and you have some wiggle room, would you do it out-of-state?
Any and all help is appreciated and I am also open to any and all advice and partnerships. Thanks again BP!Caleb
I recommend you read this article on OOS investing. It explains the importance of creating your core four. You will need to get a local, rockstar Realtor, contractor, lender, and property manager.
https://www.biggerpockets.com/blog/core-four-real-estate-tea...
I invest locally in Columbus, OhioThis is awesome, thank you!
- Member since 2021 · 6 posts · 5 votes2y
Quote from @Jimmy Lieu:
Hey Caleb, doing long distance flips can be challenging but it's definitely possible and worth it if the numbers align and you have flexibility! I have personally worked with a lot of OOS investor clients who have done successful long distance flips here in Columbus Ohio. When assembling a team, consider local real estate agents, contractors, and property managers. Building a network through industry events and online platforms can help. Establishing trust is crucial, so check references, ask for referrals, and consider visiting the area if possible. As a local investor and agent here in Columbus, let me know if you have any questions or want to connect!Quote from @Caleb Benedict:
Hello BP! I am interested in fix and flipping properties in the midwest- Cleveland, Saint Louis, Columbus and Indianapolis. I've been researching markets for months, and I have created this pipeline of great wholesalers from these areas. I just came across a deal today which looks absolutely incredible. However, the problem is that I live in NYC. I want to know from those of you who are flipping out of state in the cities I mentioned (or just out of state in general). How did you assemble a team? How do you know who to trust (which is probably my biggest fear)? Is it even worth it, or even possible, to flip properties when you live a thousand miles away? I know that the general wisdom is that you should always flip near you, but if the numbers are really good and you have some wiggle room, would you do it out-of-state?
Any and all help is appreciated and I am also open to any and all advice and partnerships. Thanks again BP!Caleb
Hi Jimmy, would love to connect!
Quote from @Caleb Benedict:
Hello BP! I am interested in fix and flipping properties in the midwest- Cleveland, Saint Louis, Columbus and Indianapolis. I've been researching markets for months, and I have created this pipeline of great wholesalers from these areas. I just came across a deal today which looks absolutely incredible. However, the problem is that I live in NYC. I want to know from those of you who are flipping out of state in the cities I mentioned (or just out of state in general). How did you assemble a team? How do you know who to trust (which is probably my biggest fear)? Is it even worth it, or even possible, to flip properties when you live a thousand miles away? I know that the general wisdom is that you should always flip near you, but if the numbers are really good and you have some wiggle room, would you do it out-of-state?
Any and all help is appreciated and I am also open to any and all advice and partnerships. Thanks again BP!Caleb
It took me years to get a reliable team. I now have about 30 guys, unlimited deal flow and have done about 500 yes 500 over the last 7 8 years in the Cleveland markets, all while living out of state. I just put 7 more SF under contract last week. I will reno, and flip them this month all while living on the beach in FL.
All the best
- Member since 2021 · 6 posts · 5 votes2y
Quote from @Bob S.:
Quote from @Caleb Benedict:
Hello BP! I am interested in fix and flipping properties in the midwest- Cleveland, Saint Louis, Columbus and Indianapolis. I've been researching markets for months, and I have created this pipeline of great wholesalers from these areas. I just came across a deal today which looks absolutely incredible. However, the problem is that I live in NYC. I want to know from those of you who are flipping out of state in the cities I mentioned (or just out of state in general). How did you assemble a team? How do you know who to trust (which is probably my biggest fear)? Is it even worth it, or even possible, to flip properties when you live a thousand miles away? I know that the general wisdom is that you should always flip near you, but if the numbers are really good and you have some wiggle room, would you do it out-of-state?
Any and all help is appreciated and I am also open to any and all advice and partnerships. Thanks again BP!Caleb
It took me years to get a reliable team. I now have about 30 guys, unlimited deal flow and have done about 500 yes 500 over the last 7 8 years in the Cleveland markets, all while living out of state. I just put 7 more SF under contract last week. I will reno, and flip them this month all while living on the beach in FL.
All the best
Hi Bob that is incredible! Would it be possible for us to connect and I could grab 15 minutes of your time? I'm 23 and would love the opportunity to learn from you.
- 2yNicholas L.Pro MemberFlipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
I don't see how it's possible to do as a new investor... from Internet. As others have said, if you spend time there in person and set up a great team, maybe. But - I have a hard enough time managing my rehabs that are close to me. i don't even know how i'd do one out of state. as far as i can tell the position of "managing the rehab the way you would want if you were doing it yourself, and putting your best interests first" doesn't exist.
in my experience management involves coordinating contractors, going to the property more times than you think you will need to, going to the property to do something yourself that you paid someone to do who just didn't do that thing, even though they said they 100% would, etc.
Here's what I would do instead. You live in NYC - fine. Draw a circle around where you live going about 2 hours out. Look into all those markets. Pick one. Go there all the time. Meet agents, go to REIA meetings, talk to property managers, talk to lenders, talk to everyone. Look at 50 properties. You said you created a pipeline of wholesalers from further away - so create a pipeline that's closer. you're 2 hours from at least 5 states. - Investor · Scottsdale Austin Tuktoyaktuk · Member since 2021 · 4k+ posts · 4k+ votes2yThree things I've learned in flipping dozens of houses
Quote from @Caleb Benedict:
Hello BP! I am interested in fix and flipping properties in the midwest- Cleveland, Saint Louis, Columbus and Indianapolis. I've been researching markets for months, and I have created this pipeline of great wholesalers from these areas. I just came across a deal today which looks absolutely incredible. However, the problem is that I live in NYC. I want to know from those of you who are flipping out of state in the cities I mentioned (or just out of state in general). How did you assemble a team? How do you know who to trust (which is probably my biggest fear)? Is it even worth it, or even possible, to flip properties when you live a thousand miles away? I know that the general wisdom is that you should always flip near you, but if the numbers are really good and you have some wiggle room, would you do it out-of-state?
Any and all help is appreciated and I am also open to any and all advice and partnerships. Thanks again BP!Caleb
1. There are always unforseen circumstances that cost time & money
2. You, or someone you really, really, really, trust has to be there daily to keep things moving along, answer questions, find out why contractors didn't show, boot out squatters, meet with inspectors, and so on.
3. Taxes eat up a lot of your profit on a fix and flip.
I quit flipping because I made so much more buying off market, and reselling on lease option and I let the guy that buys from me lease option do the rehab. I get the 10% down, the cash flow, the principal paydown, the tax write offs, have no work to do and don't require a property manager.
So, if you like swinging a hammer, like I do, build a shed in the back yard but make your money buying "off market" and selling "lease option". I post about one at https://www.biggerpockets.com/forums/311/topics/1141313-subj... Quote from @Nicholas L.:
I don't see how it's possible to do as a new investor... from Internet. As others have said, if you spend time there in person and set up a great team, maybe. But - I have a hard enough time managing my rehabs that are close to me. i don't even know how i'd do one out of state. as far as i can tell the position of "managing the rehab the way you would want if you were doing it yourself, and putting your best interests first" doesn't exist.
in my experience management involves coordinating contractors, going to the property more times than you think you will need to, going to the property to do something yourself that you paid someone to do who just didn't do that thing, even though they said they 100% would, etc.
Here's what I would do instead. You live in NYC - fine. Draw a circle around where you live going about 2 hours out. Look into all those markets. Pick one. Go there all the time. Meet agents, go to REIA meetings, talk to property managers, talk to lenders, talk to everyone. Look at 50 properties. You said you created a pipeline of wholesalers from further away - so create a pipeline that's closer. you're 2 hours from at least 5 states.Its ALL about your team. I do about 150k a month in reno/ repairs all from OOS . I get my props walked in typically an hour or so.
All the best
- 2yMarc RiceBusiness MemberReal Estate Agent · Columbus Cleveland Dayton, OH · Member since 2018 · 2k+ posts · 1k+ votes
Quote from @Caleb Benedict:
Hello BP! I am interested in fix and flipping properties in the midwest- Cleveland, Saint Louis, Columbus and Indianapolis. I've been researching markets for months, and I have created this pipeline of great wholesalers from these areas. I just came across a deal today which looks absolutely incredible. However, the problem is that I live in NYC. I want to know from those of you who are flipping out of state in the cities I mentioned (or just out of state in general). How did you assemble a team? How do you know who to trust (which is probably my biggest fear)? Is it even worth it, or even possible, to flip properties when you live a thousand miles away? I know that the general wisdom is that you should always flip near you, but if the numbers are really good and you have some wiggle room, would you do it out-of-state?
Any and all help is appreciated and I am also open to any and all advice and partnerships. Thanks again BP!Caleb
Sometimes you can hire the property manager to act as a project manager for a fee. Eyes on the ground to oversee the contractor are key.
Marc Rice | Investor Friendly Agent at Reafco Tailwind Team574 Reviews - Cincinnati, OH · Member since 2016 · 116 posts · 83 votes2y
I’d say it’s a horrible idea in practice and would advise try another strategy. Who is gonna fight with the contractor if they installed something wrong and you have to start over? Your property manager? Highly unlikely. What if your original contractor wants more money or they will just stop showing up? Do you have to capital to completely start over? I have a crew that I hire regularly that knows I come by and check daily, and they still make a ton of mistakes. I can only imagine the quality of someone was only checking in once in a while. The odds are bad, most investors only try to flip one house in their life and give up.
I won't underestimate how hard it is. I don't fix and flip, I fix and rent. I keep the property.
Let's put it this way, I've done this in several cities. In three of them, I had to post up for sometime to get people to do what was asked of them. I do not have time for that, I set up things to pay to not use my time. Heck, forget what's asked of them but legally what is binding and financially incentivized to do. I am fortunate everything's been done as of YTD, but this is a ***** make no mistake about it. I made everything a system, even down the point where my water heater was tagged.
Contractors are some of most difficult people to work with, managing your property manager is another issue, the city/county can make things awfully difficult. In one of my markets, the other individual competing against me totally re-did their houses into 1-4 MF without understanding zoning issues and now can't legally sell as is after doing all that work.
After the tail end of winter, when I take a break from this and go back in next winter. I think I'll only go buy properties that are mostly okay. I don't mind an old hvac, water heater. That stuff can be replaced in a day.
- 2yRobert EllisBusiness MemberDeveloper · Miami, FL · Member since 2014 · 3k+ posts · 1k+ votes
Quote from @Caleb Benedict:
Hello BP! I am interested in fix and flipping properties in the midwest- Cleveland, Saint Louis, Columbus and Indianapolis. I've been researching markets for months, and I have created this pipeline of great wholesalers from these areas. I just came across a deal today which looks absolutely incredible. However, the problem is that I live in NYC. I want to know from those of you who are flipping out of state in the cities I mentioned (or just out of state in general). How did you assemble a team? How do you know who to trust (which is probably my biggest fear)? Is it even worth it, or even possible, to flip properties when you live a thousand miles away? I know that the general wisdom is that you should always flip near you, but if the numbers are really good and you have some wiggle room, would you do it out-of-state?
Any and all help is appreciated and I am also open to any and all advice and partnerships. Thanks again BP!Caleb
the easy answer is build houses instead of flipping. I did a 30 min consult with a client yesterday. you control every part of the process from start to finish. where to build, floorplan, layout, finishes, design, etc. easy BRRRR strategy or flip. it's easy when you have one company handling it as well. I'd never recommend existing flips at this moment in columbus for homes built before 1940 and for ones built after you are going up against cash buyers. I made an offer for a client yesterday for 10k over list all cash close in 10 days from Israel. you can't compete with that with no experience. the lots we are purchasing have been on the market for 100 days or 60 days way less competitive. I have a 40 page packet about this process if you'd want it
Section 8 Launch52 Reviews - Contractor · Jackson, MI · Member since 2021 · 14 posts · 3 votes2y
Caleb,
Just a couple suggestions here.
- try to network with local property managers in the area. Let them know what you're doing and that you're looking to build a team. Might take a few before you find one that is a good fit, they usually have good resources and teams already.
- call local supply houses (electrical, plumbing, HVAC) and ask them if they have any locals they could recommend. I ask what companies are busy with them and paying their bills, usually gets a good conversation going.
- often the real estate agent can be the guiding hand to some local contractors.
If you're looking at the mid west let me know if you find anything interesting in Michigan. I'm in Jackson, lots of opportunities here for fix and flip as well as buy and hold. Big need for rentals.
I own 4 STR/MTRs and in the middle of a fix and flip. Lets connect!
- Real Estate Broker · Chicago, IL · Member since 2014 · 2k+ posts · 1k+ votes2y
Quote from @Caleb Benedict:
Hello BP! I am interested in fix and flipping properties in the midwest- Cleveland, Saint Louis, Columbus and Indianapolis. I've been researching markets for months, and I have created this pipeline of great wholesalers from these areas. I just came across a deal today which looks absolutely incredible. However, the problem is that I live in NYC. I want to know from those of you who are flipping out of state in the cities I mentioned (or just out of state in general). How did you assemble a team? How do you know who to trust (which is probably my biggest fear)? Is it even worth it, or even possible, to flip properties when you live a thousand miles away? I know that the general wisdom is that you should always flip near you, but if the numbers are really good and you have some wiggle room, would you do it out-of-state?
Any and all help is appreciated and I am also open to any and all advice and partnerships. Thanks again BP!Caleb
Flipping out of state means putting people and processes in place to protect your investment that may or may not do locally. Which means including those people and processes in your budget. Here are some things we do when investing Out of State.
1. When we invest out of state we do some work to find a local Joint Venture Partner in that market. A boots-on-the-ground person. Someone who would benefit from the profits associated with the deal and become your local eyes and ears. Working with a local Joint Venture Partner we would assemble a team.
2. Title Company or Real Estate attorney to escrow renovation funds- One of the challenges working with contractors and/or handymen when investing Out of State (it applies locally as well) is not just making sure that you have the construction number right. It's making sure that the contractor knows you have the funds to execute. So we escrow the construction funds at closing so the contractor can see that they are working with a credible organization. The title company may charge you to hold and distribute the funds
3. Inspectors- If you are using a hard money or private money loan the construction will most likely be in phases with money being released to a contractor after an inspector hired by the lender inspects the work. In the deals where we were using our own cash, we would find out which inspectors the HMLs use in a local market and hire the same inspectors. We budget for the inspectors.
4. Budget traveling into the market at least once per quarter
The items above are really about how to protect yourself when investing Out of State. It increases the cost of doing business, but if the deal is good enough then it should be able to still be a good deal with the additional costs. You don't want to escrow funds. You want to pay via an LLC that does not own the property but manages the property. You want to pay via credit/debit card, even with that dumb 3% fee. If they don't accept card, pass.
You want everything written contractually and signed. You don't prepay a significant amount, you offer to supply materials. If they're able to grab them cheaper, you can negotiate this but most of the time they have an adder. In the contract you add addendums that protect yourself like getting it looked at by a 3rd party inspector, contractor pulls permits(with proof).
If any agent or PM offers you a contractor, someone that they know that's "great". Make them marry the job too. Add in your expenses a fee to hire them to manage the GC, and the liability sits on them to get paid for that. If they vouch for them so much, prove it. If it is a long project like 30 days +, show up twice. If it's a 10-15 day one you don't need to.
Even people on this board and in this thread know of someone that's great at this or that for a rehab/reno, and they're absolutely full of ****. Make them marry the recommendation if you want to go their route. Otherwise, and you still should vet 3-5 people and compare.
- 2yNick GiulioniPro MemberRental Property Investor · Carmel, IN · Member since 2016 · 1k+ posts · 615 votes
Quote from @Caleb Benedict:
Hello BP! I am interested in fix and flipping properties in the midwest- Cleveland, Saint Louis, Columbus and Indianapolis. I've been researching markets for months, and I have created this pipeline of great wholesalers from these areas. I just came across a deal today which looks absolutely incredible. However, the problem is that I live in NYC. I want to know from those of you who are flipping out of state in the cities I mentioned (or just out of state in general). How did you assemble a team? How do you know who to trust (which is probably my biggest fear)? Is it even worth it, or even possible, to flip properties when you live a thousand miles away? I know that the general wisdom is that you should always flip near you, but if the numbers are really good and you have some wiggle room, would you do it out-of-state?
Any and all help is appreciated and I am also open to any and all advice and partnerships. Thanks again BP!Caleb
Hello Caleb,
Diving into out-of-state fix and flip projects, especially in dynamic markets like Cleveland, Saint Louis, Columbus, and Indianapolis, is an exciting venture, albeit with its unique challenges. Living in NYC while managing projects a thousand miles away can be daunting, but with the right strategies and team, it's definitely achievable. Let's break down how you can approach this effectively.
Building Your Team
- Leverage Your Wholesaler Network: Since you've already established connections with wholesalers, ask them for recommendations for reliable contractors, real estate agents, and property managers. Wholesalers often have extensive networks in their local markets.
- Real Estate Agent: Find an agent who is experienced in working with investors, particularly those specializing in fix and flips. They can be invaluable in providing insights into the local market, helping find deals, and assisting in the resale process.
- Local Contractors: Crucial for the success of your project. Look for contractors with a proven track record and positive reviews. If possible, visit the area to meet them in person, or arrange virtual meetings to establish a rapport.
- Property Manager: Especially if you plan to hold the property for rental post-renovation, a good property manager is key.
Establishing Trust and Communication
- Referrals and Reviews: Trust is built through referrals and proven track records. Prioritize professionals who come highly recommended by other investors.
- Regular Updates and Check-ins: Set up a system for regular communication. This could be weekly video calls, progress reports, or photo updates.
- Visit the Properties: If possible, make occasional visits to the properties. This shows your team you're actively involved and also gives you a firsthand look at the progress.
- Use Technology: Leverage technology for project management and monitoring. Tools like Zoom, Dropbox, and various project management software can be very helpful.
Assessing the Feasibility
- Numbers Don't Lie: Ensure your numbers include all costs: purchase, renovation, holding, and selling costs. Factor in a buffer for unexpected expenses, especially being remote.
- Risk Assessment: Understand the risks involved, including market fluctuations, unexpected renovation challenges, and the difficulty in managing a project remotely.
- Start Small: Consider starting with a smaller project to test the waters and understand the dynamics of long-distance flipping.
- Exit Strategies: Always have multiple exit strategies in case the flip doesn't go as planned. Can you hold and rent the property if the market turns?
Final Thoughts
- Networking: Continue to grow your network in these cities. Attend real estate investing meetups virtually or in person, join online forums, and connect with other investors.
- Education: Keep educating yourself about each market, the legalities of flipping in different states, and the latest trends in real estate investment.
Flipping properties out-of-state can be a rewarding venture if approached with diligence, thorough planning, and the right team. The key is to balance the attractive potential returns against the challenges of remote management. Your willingness to learn and adapt will be crucial to your success.
Feel free to reach out if you need more specific advice or are considering partnerships. Wishing you the best in your real estate journey!
Quote from @Caleb Benedict:
Hello BP! I am interested in fix and flipping properties in the midwest- Cleveland, Saint Louis, Columbus and Indianapolis. I've been researching markets for months, and I have created this pipeline of great wholesalers from these areas. I just came across a deal today which looks absolutely incredible. However, the problem is that I live in NYC. I want to know from those of you who are flipping out of state in the cities I mentioned (or just out of state in general). How did you assemble a team? How do you know who to trust (which is probably my biggest fear)? Is it even worth it, or even possible, to flip properties when you live a thousand miles away? I know that the general wisdom is that you should always flip near you, but if the numbers are really good and you have some wiggle room, would you do it out-of-state?
Any and all help is appreciated and I am also open to any and all advice and partnerships. Thanks again BP!Caleb
Where is this deal and what are the numbers? It's easy to flip OOS just have a team in place. I just locked up 7 more SF in Cleveland I will sell ( I may keep two of them) in a month all while living in FL. Its all about knowledge and your team.
All the best
- 2yTyler LingleBusiness MemberReal Estate Consultant · Indianapolis, IN · Member since 2021 · 440 posts · 292 votes
I would use an experience construction management team, property manager, and realtor. I'd be happy to set up a call with our team! @Nick Giulioni does awesome construction management with Off-Leash too!
Roots Realty Co. 564 Reviews - 2yNick GiulioniPro MemberRental Property Investor · Carmel, IN · Member since 2016 · 1k+ posts · 615 votes
Quote from @Tyler Lingle:
I would use an experience construction management team, property manager, and realtor. I'd be happy to set up a call with our team! @Nick Giulioni does awesome construction management with Off-Leash too!
Can't recommend Roots team highly enough! They do awesome work for their clients!
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