Anyone who is doing long distance investing?
Member since 2020 · 295 posts · 56 votes
Is there anyone who is doing long distance investing? investing out of there country or state? Cause I want to know what measures do I have to take before investing in another country or state.
@Jasraj Singh - I recommend the book on "Long Distance Investing" by David Greene.
@Jasraj Singh Your best bet is to talk to someone fully qualified in the mortgage industry like @Andrew Postell
thanks a lot! I'll talk to him for sure!
@Jasraj Singh - Having a plan on what do you want to invest in is critical. I am in South Florida and therefore the market is very different from a Texas market. I would say set your goals first in what do you want to invest in:
- STR, Buy and Hold, Flip, LTR, Multi-family properties, Section 8. etc.
- then, have a local Realtor or Sales Broker who knows how to navigate this market
- Savvy relator can put you in touch with Lenders if you don't have one already
- let the fun begins
I am an investor my self and my wife is a sales broker here in South Florida in case you need any help.
Sure! Thanks a lot brother!
I'll really look into that!
For the love of God, call every property manager in the city and talk to them in depth. Dont be afraid to sound dumb and be annoying. Ask them how they maintain properties, what do they do if rent is late, what if a tenant needs eviction?
Im new to investing, began investing out of state in the U.S. Had an amazing realtor, went with her agencies property manager and she was hot trash. It was a nightmare to me and now were slowly ironing out the kinks.
In my opinion, expect hiccups and expect to make adjustments. Its tough to manage from a distance in all honesty, I opted for a property manager but sometimes even they need to be managed.
Okay! I just don't just want to invest I'll live there in a rented property till I get the green card and then I'll start investing, I know it's a long way to go but I want to do it anyway lets see what happens.
thanks for your advice!
@Jasraj Singh I self manage 26 doors all of which are nowhere near where I “live” I’m not even sure where I live lol. Nothing to it. I also have a day job.
that's great! what kind of properties do you own?
I recently opened an LLC in Ohio Cleveland, plan to buy and rent out a property and live in Dubai. I would say and from what I hear, you need to find a GOOD property manager which will make all the difference.
Is there anyone who is doing long distance investing? investing out of there country or state? Cause I want to know what measures do I have to take before investing in another country or state.
Yes. If you cannot do your investing long distance, you aren't "investing", you are "working".
Don't confuse flipping and being a landlord with investing.
I am a real estate broker in Arizona but I invest in 5 other states. We currently own 24 properties across those 5 states. I also manage all of them from Arizona. It is all about your team that you put in place (boots on the ground). I learned alot in 3 years and have it very dialed in now. Nothing is perfect, the reward of higher cash flow in these markets is worth it in my opinion.
brilliant! but can you tell me how do you find out that a particular market or a place has a higher or lower cash fl
I am not one to live and die by the 1% rule as it does not work in many markets, however we were able to identify many markets that are not even considered "hot markets" to investors that had strong rental demand and we could buy properties moderately distressed, so a little rehab and rent in days for more than 1% of property value. We also then look at property taxes and job market. Many cities in the midwest have demand for nice rentals as they are not considered "sexy" by investors and they are very affordable to purchase.
Alright! great can you tell me which cities do you think in the midwest have demand for nice rentals and you think are affordable?
Thank you
@Jasraj Singh SIMPLE surround yourself with a team that is actually doing it daily... 10- 14% net caps ( more after you refi COC ) are to be had 100% hand off !! BTW, Do not over analyze like 99% do . Get the numbers and do it !! So many say I am going to sit on the sidelines and wait . Well the only ones that make money on the sidelines are coaches :)
Good Luck
Got it! but there are a lot of ways to analyze can you tell me how do you get the numbers and calculate it when buying a rental property?
If you want to invest overseas, you first need to have goals and strategies to lead you to your goals, as you would if you'd invest at home in India or any state of the US.
You asked how you find out in which countries to invest. This will first depend on your objectives and strategies. Then, you have to select places that are investor friendly, that have a legal system you can rely on, that allows you to own properties freehold (if that's what you want) and that will give you a satisfactory return. You need to take into account the economics and the politics of the place as well.
Yes it's not easy and it takes time and this is why not many people are knowledgeable about it. However, that's normal when you think about it. If it was easy, everybody would be doing it and the opportunity to make great returns might not exist or it might be much less profitable.
Great! thanks a lot! I know I want to start with multi-family rental properties and I've done some research about affordable cities to invest in which I've read articles about michigan, Indianapolis, Kansas and Texas and I'm a little confused about each but I just can't figure out what to look for in a market before investing there like how do you find out what's the rental income there or how much cash flow can i have monthly
@Jasraj Singh
I'm doing two BRRRR deals in kansas Topeka. Great cash flow market but you need to have the very best team and the only way to assemble a team for a newbie is to read David Greene book. Also ask question on the forums here, read old forum posts. Do a ton of research in the market you are pursuing and narrow down a niche property you want to invest in. For example I look for large 2bed 1bath homes through a wholesaler or a savy investor minded real estate agent. These two sources become a deal system where they are sending you deals. I have my core four send me deals. I am upfront about a bonus I will pay out for a slam dunk deal. 500 dollar signing bonus for closing on a great BRRRR deal. You will be surprised that your core four will start working even harder when they know there's a bonus involved. All there best contacts and connections start becoming yours because they know if you succeed that means more business for each any every member of the core 4. Agent, PM, lender, contractor.
I recommend looking at maps of the target sub market and go INVESTIGATE like you work for the CIA. Write all the data you find, from neighbors, to schools, to rents for different type of houses. Find out what tenants are attracted to when it Comes to renting. Your property manager if he’s a good experienced one will give you a ton of info and paint a picture of life as a tenant in that market your pursuing. Trust but always verify any info you get from your core 4. I verify within the core 4 and I also call additional sources when in doubt.
Pre screen every member of your core 4.
Call 10 agents and pick one
Call 10 lenders and pick one or two
Call 10 property managers and pick one
Call 10 contractors and pick one.
You will get experience talking to people and formulating a even clearer vision of that market. You might even know that market more than where you live If you do This.
Good luck connect with me if you want mire Info on the Topeka market
Thanks a lot for this advice! I really appreciate it man! Sure.A lot of recommendations about that book it must be great but I just want to know that what kind of research do you do about that place or property in which you want to invest in?
Many of my clients are out of state investors. They research the Cleveland market, leverage my insight as a local resident and investor friendly agent, obtain third party home inspections to verify condition of the property, and choose a reputable property manager to handle things post acquisition.
thanks a lot for your advice man! i'll definitely look into that!
@Jasraj Singh I live in Hawaii and invest in Cleveland. We chose Cleveland because there are good deals and a strong rental market. Having a good team on the ground is critical.
excellent! but could you tell me how did you find out that Cleveland is a strong rental market? like by visiting there or talking to agents?
Yes, I visited before I did anything. Some don't like Cleveland for this reason or that, but at the end of the day, there are lots of renters there. Yes, we spoke with agents and property managers. All the best!
Alright! thanks man so you suggest me to visit and then think about investing there cause I'm confused how can I choose a market to invest in here?
Yeah, it's tough choosing a market. We took the ready, fire, aim approach. haha. We know we wanted to be in the Midwest market, so jumped into the deep end. Not recommended, but we felt we needed to go for it and then learn as we go. They say you pay for your education either in a classroom or on the street. We definitely got knocked around. Everyone's risk profile is different, but at the end of the day you have to decide, or you will be on the sidelines forever.
Alright! thanks man!
appreciate it!
We just started. Currently in Delaware and just about to close on our first investment in Valdosta, GA. Hoping to jump into that market a bit more. Have you started?
That's great! I haven't yet but I'm about to!
Hi Jasraj,
I live in CA and acquired two properties in different markets (PA and Detroit) last year. I echo what a lot of investors here are advising. I think the most important thing I've learned is to have the right team. I've already switched property management in one of my rentals and it's made a world of difference. Having a property manager who not only does their job well, but also is well connected with contractors, inspectors, etc. is important. This makes the world of a difference if you're not going to be hands on.
Do some deep diving in markets that you are interested in and visit at least once. When I visited my property in MI, I was shocked the world of difference one street makes. Certifications that the city or state requires are worth researching to avoid headaches. I know numbers are important, but they only tell you so much when you're out of the state/country when you're looking for deals. Know your tenant base and the demographics as well.
I would also advise finding a partner to invest with to minimize the risk when looking long distance. Best wishes on your journey.
Great advice! Thanks a lot man! but can you tell me what do you look for in a place where you want to invest in and how do you calculate the numbers cause there are a lot of ways to analyze?
I recently opened an LLC in Ohio Cleveland, plan to buy and rent out a property and live in Dubai. I would say and from what I hear, you need to find a GOOD property manager which will make all the difference.
That's great! thanks for your advice man!
I'll keep that in mind!
Is there anyone who is doing long distance investing? investing out of there country or state? Cause I want to know what measures do I have to take before investing in another country or state.
Yes. If you cannot do your investing long distance, you aren't "investing", you are "working".
Don't confuse flipping and being a landlord with investing.
Alright! thanks for your advice!
I just wanted to know what do I need to know and do before investing in another country!
Is there anyone who is doing long distance investing? investing out of there country or state? Cause I want to know what measures do I have to take before investing in another country or state.
Yes. If you cannot do your investing long distance, you aren't "investing", you are "working".
Don't confuse flipping and being a landlord with investing.
Alright! thanks for your advice!
I just wanted to know what do I need to know and do before investing in another country!
I wouldn't necessarily recommend investing IN another country, unless you know what you are doing.
Real estate investing in the US is great because of long term, low interest, FIXED financing.
Highly recommend to explore, travel, and live outside the US if you can :) Try it, and see if you like it.
@Jasraj Singh I self manage 26 doors all of which are nowhere near where I “live” I’m not even sure where I live lol. Nothing to it. I also have a day job.
that's great! what kind of properties do you own?
Lots of kinds. Short term long term single family small multi. 4 different markets. All self managed with a day job and a family. 26 doors
Is there anyone who is doing long distance investing? investing out of there country or state? Cause I want to know what measures do I have to take before investing in another country or state.
Yes. If you cannot do your investing long distance, you aren't "investing", you are "working".
Don't confuse flipping and being a landlord with investing.
Alright! thanks for your advice!
I just wanted to know what do I need to know and do before investing in another country!
I wouldn't necessarily recommend investing IN another country, unless you know what you are doing.
Real estate investing in the US is great because of long term, low interest, FIXED financing.
Highly recommend to explore, travel, and live outside the US if you can :) Try it, and see if you like it.
Your opinion might be right! but the U.S is the best option I think especially because of 1031 exchange cause it's no where else!
thanks a lot for you advice!
appreciate it!
@Jasraj Singh I self manage 26 doors all of which are nowhere near where I “live” I’m not even sure where I live lol. Nothing to it. I also have a day job.
that's great! what kind of properties do you own?
Lots of kinds. Short term long term single family small multi. 4 different markets. All self managed with a day job and a family. 26 doors
Excellent! but seriously how can you self manage 26 doors without a manager!
Is there anyone who is doing long distance investing? investing out of there country or state? Cause I want to know what measures do I have to take before investing in another country or state.
Yes. If you cannot do your investing long distance, you aren't "investing", you are "working".
Don't confuse flipping and being a landlord with investing.
Alright! thanks for your advice!
I just wanted to know what do I need to know and do before investing in another country!
I wouldn't necessarily recommend investing IN another country, unless you know what you are doing.
Real estate investing in the US is great because of long term, low interest, FIXED financing.
Highly recommend to explore, travel, and live outside the US if you can :) Try it, and see if you like it.
Your opinion might be right! but the U.S is the best option I think especially because of 1031 exchange cause it's no where else!
thanks a lot for you advice!
appreciate it!
Totally agree. Had no idea other countries dont offer a tax deferred exchange.
I'm just about to close on a sale, doing my first 1031. Never thought I'd sell any rentals. But, times change :)
Is there anyone who is doing long distance investing? investing out of there country or state? Cause I want to know what measures do I have to take before investing in another country or state.
Yes. If you cannot do your investing long distance, you aren't "investing", you are "working".
Don't confuse flipping and being a landlord with investing.
Alright! thanks for your advice!
I just wanted to know what do I need to know and do before investing in another country!
I wouldn't necessarily recommend investing IN another country, unless you know what you are doing.
Real estate investing in the US is great because of long term, low interest, FIXED financing.
Highly recommend to explore, travel, and live outside the US if you can :) Try it, and see if you like it.
Your opinion might be right! but the U.S is the best option I think especially because of 1031 exchange cause it's no where else!
thanks a lot for you advice!
appreciate it!
Totally agree. Had no idea other countries dont offer a tax deferred exchange.
I'm just about to close on a sale, doing my first 1031. Never thought I'd sell any rentals. But, times change :)
Great! congratulations!
good luck man! see you there!
@Marco Dominguez Bingo!! This is one of the biggest truths that you have ever told as long as I have known you. You may not know but our relationship goes back as far as about 3 minutes ago when I first read your message. You can find a good PM on here through referrals, I would never go with someone that says they can help without triple vetting them.
@Jasraj Singh I agree with the recommendations for the long distance investing book by David Greene. My wife and I purchased nine units in a city 9 hours away from us. We picked our market, then I decided to establish a strong network first. I picked up the phone and called brokers, wholesalers, agents, attorneys, contractors and, most importantly, property managers. After I shifted through them and formulated my team, we proceeded cautiously. It is a trial and error but, if your numbers work in that market, you can do well. I definitely recommend chasing the numbers and not being isolated to your local competitive market. It’s definitely doable!
First going through inspections I look at the conditions of the big ticket items: roof, plumbing, heating and air, electrical, things like; and then the cosmetics. I try to determine if its a big fixer or a cosmetic fixer to be able to get it rented. This will also help you negotiate the price or offer. Consider the age of the house when looking for properties, this will tell you a lot.
As far as the numbers, I look to see if they make sense with the current rents that they bring in. Since I'm newer I like to over estimate my expenses (PM Fee, Taxes, Debt Service, Utilities, Capex, Repairs, etc.) and underestimate my income. Also consider the debt coverage ratio the cash flow provides. Each property will have different expenses depending on if your required to pay for some utilities or not. You will absolutely need reserves, don't skip this part when you're running your numbers. Check a few different sites and talk to property managers about the market rent potential and what you would need to do to get them there.
At first I just looked to see what the cash flow would be with properties, now I also look at the Cash on Cash return as well. Your parameters will vary based on what your goal is. Mine right now is just to build a portfolio and pay down the debt and get the tax benefits.