OOS investor looking to build a team - recommendations?

Question

Hello!

I'm a beginner investor that is going to go overseas soon. So not only will I be out of state, but also out of country. Before I leave though, I am trying to buy my first investment property. Specifically I am looking for a multifamily home <$200,000. I am currently only in contact with 1 RE agent and have been pre-approved by one local bank.

I'm trying to get recommendations on who/what BP members think are the best:

source of deals - (agents, wholesalers, etc)

banks - lowest rates

property managers

Thank you for helping this newbie out!

Ross Denman · Answer

First recommendation is to get David Greene's book - Long Distance Real Estate Investing. It really is a good resource and wealth of information.

Secondly, you are going to want to identify some target markets. After that, try to find some local Investor Groups. For instance, we have a few Facebook Groups for Investors in Indianapolis. I recommend checking out the Indianapolis Out of State Investor FB Group. Most of the local providers and investors are engaging there and there are a couple hundred out of state investors there as well. It's a great place to meet providers and investors and build your team. Even as a local provider and investor myself, I have added several new people to my personal network to assist my clients in team building. It's a great place to ask questions and learn about the local market and they admin's are very proactive in keeping the spammy BS out of the feed.

I think the most important thing to consider when investing out of state is having a great team.

Frank Wong · Answer

Hi Teho,

Probably not the answer you want to hear but don't even start.  OOS is hard enough and now you are out of the country.   OOS investing is not easy and require a lot of homework before even investing in something.

OOS investing- New investor thinks I find a realtor, they find me a property, I buy it and get a PM to manage it and I sit back and collect the check.  The reality its not like that.  Can it work like that?  It certainly can but it will require a lot of upfront work and you won't really know if the people you hired will perform until they start.

In your case, you need to have 1yr experience of doing this before you leave the country.   Just my 2 cents from someone who invests OOS.  Good luck.

Nicholas Earls · Answer

@Steven Dreyer and @Stephen Krzyzak do either of you invest in the Indianapolis area or are you saying that was your experience with OOS investing in general?  I am also looking for good team members in the Indianapolis area in preparation for moving there.

@Stephen Krzyzak are you asking the handyman to go specifically check in on the property from time to time or do you have then on a "look at it while you are there changing filters and batteries" kind of thing?   Any other recommendations for following up on your team members?

Alyssa Dyer · Answer

@Teho Kim are you shopping markets or just looking for help in TX?

Stephen Krzyzak · Answer

I agree with Frank's suggestion on this.  You really need to have the properties for a few years, to stabilize the properties and team before you can be hands off.  For me, I learn by doing, so I  went through 3 property managers and a few  handy men until I finally feel comfortable enough to take my eyes off the investments for a while.

Going through my experience of being an OOS investor, these are the things I recommend you prepare to handle when you leave the country.

1.  Make sure you have a reserve set in case you have a large maintenance issue come up or a turn that needs to be done.

2.  See if you can secure the service of a handyman that you trust.  You will need boots on the ground to keep your property managers honest.  If you do not have someone like this, you could possibly be taken advantage of, especially if the property manager knows you are out of the country.

3.Buy a good property in an upscale area.  These types of tenants typically less high maintenance than the other side of the spectrum.

Good Luck!!!

Stephen Krzyzak · Answer

@Zach Hoereth, I have worked with four different property managers in the 6 years I have been investing.  I am happy with my current property manager, however, there are some bad property managers out there.

Zach Hoereth · Answer

@Stephen Krzyzak Have you utilized the same property management company for all 6 years? I am curious about your experience.

Steven Dreyer · Answer

@Nicholas Earls no I don’t invest in Indianapolis. Just got hit with the OOS tag notification.

Feel free to ask anything, I’m here to assist.

Stephen Krzyzak · Answer

@Nicholas Earls I am a current oos investor, I have been investing in Indy for the last 6 years.

Typically I have my handy man get involved if there is a large repair item that needs to be addressed or on a turn.  The property manager will handle the small issues when the property is tenanted.

OOS investor looking to build a team - recommendations?

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