LONG DISTANCE INVESTING - how to do it right?
Hello! I'm an out-of-state long-distance investor from Canada. I'm completely NEW to this industry. My local market is overpriced. I've chosen to invest in Texas because Census say it's the fastest growing state (https://www.census.gov/quickfacts/) and a lot of companies are moving there.
My question is, if you were me, would you:
1) fly to Texas, get to know the city, then visit again to inspect rehab work? (most involved)
2) not visit, trust the local eyes, realtors, contractors, PMs?
3) find local investors to partner with? (least involved)
I definitely suffer from analysis paralysis. I'm so scared to potentially lose my life savings. Any input would be greatly appreciated. Thank you so much!
Most Popular Reply
Hi @Carter Wong!
I believe the best option incorporates all three approaches, in the following sequence:
- Connect with knowledgeable local investors to quickly get a sense for the many sub-markets
- Build a core team of capable professionals (PM, inspectors, contractors) who are goal-aligned with you and also have no conflicts of interest among themselves
- Do a single small deal to establish a work process for the team and get a minor win.
- Make strategic visits, not to inspect rehab work but rather to strengthen your relationships with your core team.
- Do more and larger deals, adjusting the team as necessary.
This is exactly the approach I'm in Lubbock, Texas today and would love to compare notes with you.