I was curious as to what people's strategies are to forming a team in an out of state market for utilizing the BRRRR strategy.
I found a couple off market deals in Columbia, SC and am trying to get my team together. I know trustworthy contractors are hard to come by even in my own market as well as property managers so starting from scratch out of state seems like a tough task.
The numbers on this deal are great I just want to make sure I have all pieces lined up to quote, see rehab through, and get a tenant in place/manage after completed.
I am thinking about vetting a reputable agent as a starting point and then using their knowledge and connections to help get strong referrals for a contractor/property manager.
I could technically source deals and write contracts myself since I have my license here in Jacksonville, however I think it’s more beneficial having someone submersed in their respective market to help guide.
Would love to hear other peoples feedback on how they transitioned to their first out of state deal?
Get a great agent to help you out in the market. Find one that knows many contacts and use them. Also try facebook town pages to find contractors! I hope this helped!
@Stephen Brown Great idea with the Facebook Group, definitely a lot of active people in the industry within those groups
@Shaun Nichols thanks for the referral man! I will definitely be reaching out 👍
@Will Gaston Thank you for the referral I will definitely reach out 👍
@William Whitley The first time I went out of state, I bought 3 duplexes and a single family home in Indianapolis. I didn't have a team and I relied on a property manager to do everything. It did not work very well with that first property manager. I also tried to do a rehab out of state that also didn't work as well because we were new and didn't know how to watch over the construction from a different state.
The second time we invested out of state (4 years later), we researched several different states and settled on North Carolina. Then we researched several areas of North Carolina and we settled on the Triad area (Greensboro and Winston-Salem). Then I reached out to a couple of realtors including @Jason Coleman to learn more about the market and which areas were better than others. We had him make some offers for us. He also gave us a list of some of the tradesmen that he uses on his properties. So we started building a team out there. Then I started connecting with some bankers to find some that would lend to out-of-state investors. It was a struggle until I got the names of some bankers from other investors. Then it was much easier. I sent out an assistant to North Carolina a few times to get to know the individuals that we were putting together to build our team. I reached out to wholesalers as well and to closing attorneys to start streamlining the acquisition of properties. I continued to reach out to other investors and continued to build a refine my go to team members there. Now I have 8 properties in North Carolina and I've created over 250k in equity using the BRRRLO Model (BRRRR + lease option) within the past year or two.