What is your biggest concern investing out of state?

Question

We are a property management company in central Indiana and are brainstorming the biggest concerns of out of state investors. We do have owners from the west coast, but want to hear from others as well especially if the concern or issue stopped you from investing out of state.

Matthew Irish-Jones · Answer

@Cristin Rakestraw. It’s the same for every investor... TRUST!!!

Investors are spending in some cases hundreds of thousands of dollars with a person or company who many times they have never met in person.

The slightest amount of dishonesty and a PM business with outside investors is a house of cards.

We have built business systems around transparency for investors. We try to give them the tools to trust but also verify our work. We do our best to over communicate everything with owner, even light repairs.

Every employee in our company follows our internal mantra of, treat every home like you own it.

We also use an external CPA to do our monthly reconciliation and to process our owner draws. We feel it adds a layer of trust.

During the buying process we always advocate for a multi step decision making process with independent vendors, agent, PM company, home inspector, lawyer, lender, all need to sign off on a purchase.

After trust the second most important piece is execution.

What is your biggest concern investing out of state?

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