Investing Nationwide?

Question

Hey everyone,

I know it's possible to invest across the US, and I seen it done all the time and in most cases people don't even leave there office! I have a good idea of how it's done but not sure. If anybody could give some feedback on this it would be a BIG help!

Thanks in advance

Joshua Dorkin · Answer

Th thread John is speaking about it located at:
http://forums.biggerpockets.com/viewtopic.php?t=11444

Account Closed · Answer

Ryan's advice make sense in states that use a closing attorney. Many states do but many just use escrow agents. Escrow agents do not provide advice as that would be offering legal advice. They can tell you about market practices ('we commonly see...')

Buying at a distance is a lot more about how you make decisions. Are you really becoming a partner with a local investors? Or are you buying blind? Some folks who invest in a different area from where they live are buying in communities they have studied deeply before taking action. Lots of travel and other costs to check out the area.

You also have issues with maintenance and other things that depend on local suppliers. A local property management company can be a solution. Just watch out for how they deal with the hiring of the local suppliers.

You really should consider the type of deals. If you are buying a condo in New York City where there is onsite maintenance and other staff you will have less hassle. If you are buying a single family home on 5 acres in the country then you will have a lot more maintenance and risks associated with staying on top of the property's condition.

I have property across 11 time zones. Almost all of it is in locations  that I have spent time in before buying. A fair amount is condo or similar in type (not exactly what they call it in England but close enough). Where I have single family homes I will have a concentration so that I can get some synergy in terms of management, maintenance and market intelligence.

I like investing at a distance when it comes to buying cash flow. You can pick your markets rather than searching for a strategy that matches a local market.

John Corey

PS. Ask more if you have further questions. We can let this dialog run until everyone has their questions answered.

PPS. There is another thread concerning an property management company going out of business. Many of the folks posting are some distance from their investment. I  do not have the link but I know Josh has posted in the thread so you could search his posts. I forget the city name but it is in the state of MO.

Ryan Hinricher · Answer

Ambitious 22

I can tell you a bit from the seller side of this.  We have a lot of investors that purchase homes in Memphis, Tennessee from us for cash flow.

It seems that the number one thing was having a great closing attorney that is familiar not only with investment deals but also has experience in working with investors from other areas.  I say this because in the wholesale side of the business timing seems to be everything.

With a great closing attorney, half the battle is done.   If you have bought and sold property, you can do it across the country.   If you are looking to build a buyer list, to sell properties to people, I suggest internet marketing.  Rather than just hire a firm, we poured over a ton of books and did a lot of networking with REIA's all over the US, then built a good site and spent time adding a lot of content.

If you can be a bit more specific on your question, I can digress

Thanks

Ryan - Memphis

Matt Faller · Answer

I was just about to post a thread about this, im also interested on this.
Can anyone tell me, is there any certain laws in california when it comes to wholesaling that could hold somone back?