Anyone put David Greene's OOS Investing book to action?

Question

Like many who have read David Greene's book "Long Distance Real Estate Investing", I am interested in out of state investing for buy and hold rentals for cash flow. I live in California in the East Bay, where housing is extremely expensive, multifamilies are rare, and cash flow is tough to come by.

The point of this post is to ask if anyone else has read this book, and is in a similar situation to me? I'm ready to go into a deal right now, but nervous to venture out on my own. Is there anyone out there who could give me some advice on how they started out of state investing? Anyone who is willing to partner on a deal, or at let me observe their process for a purchase? I'd like to contribute in any way possible to make it mutually beneficial!

Eric Bilderback · Answer

Thats a great question for the forum I will enjoy following this thread. I read the book and looked into going out of state but couldn’t do it. I can find deals in my area where you can get a place to close to the 1% rule (with a ton of work and some luck) and I just can’t justify the risk and stress of going out of area.

Biggerpockets should come out with an out of country investing book!

Have you guys checked out the CAP rates in EL Salvador or Afganistan? Build your team people come on!

Biggerpockets should come out with an out of country investing book!

Have you guys checked out the CAP rates in EL Salvador or Afganistan?  Build your team people come on!

Jay Hinrichs · Answer

I just have to be a contrarian here @Caleb Heimsoth  as Caleb states I cannot think of anything risker than remote rehab for beginners.. keep in mind the author is a very experienced real estate professional and what works for him simply is not germane for beginners I know they want to sell books on this site.. but I fear there is going to be some really sad people that try to do this and simply don't know what they don't know.. all to just save 5 to 10k  extra that a flipper that does all the work and takes all the risk makes bringing you a finished product.. you can lose 10 to 20k in a heart beat doing this if not more..  Once you have a lot of experience maybe .. but boy.. no experience I don't buy it.

Its just tough I know I fund these guys and have been for 20 plus years and we still get screwed..

Caleb Heimsoth · Answer

The turnkey properties I have bought net about 10k (not including taxes), so that’s the spread of not doing it yourself.  Even if it’s 15k, that’s still not a lot of room

For error

Kyle Marek · Answer

@Caleb Heimsoth

@Jay Hinrichs

@Will Gates

@Eric Bilderback

Thanks so much for the responses! Yes the one aspect of David’s book that sheds doubt on the whole process for me is the rehab part. The long distance rehab, especially for a beginner, seems too risky.

I was definitely hoping to take more of a turnkey approach as some of you have mentioned! The turnkey approach is still possible using the same “team members” process isn’t it? Deals for buy and hold and cash flow in my backyard seem like they would be very very tough and expensive to come by....

Will Gates · Answer

As we're getting started long distance, we're approaching OOS or long distance properties from more of a turnkey perspective to get started as that might allow us to get experience with minimizing headache from rehabbing from a distance, plus that could potentially allow us to use the turnkey network (property management + their access to recommended contractors, etc.)

Alyssa Dyer · Answer

Hey Kyle! I just wanted to say great idea as far as asking to shadow a deal! Because you're 10 months out I'm curious if you've got to do so and if it was helpful?

Lior Reich · Answer

@Kyle Marek

I am not saying all Turnkey companies are bad. But I have learned that when TK companies have long distance clients  - the End Client is left with a very minimal return... dont ask me why - But I have seen it many times. Hey , My business is based on those TK companies Selling "Bad" Properties in "Bad" areas to Out of state / out of country investors..

in my eyes , for the first coiuple of properties - you should DIY

Anyone put David Greene's OOS Investing book to action?

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