All Forum Posts by: Jake Goodwin

This sounds like a disaster to me. If you haven't flipped a property, knowing one contractor in the area isn't going to be the thing that pushes you over the edge. How much do you know about pricing in that area and how will you know you aren't getting taken for a ride on all the sub-contracting where the contractor can make extra money? The scarier part to me is about raising capital. You have no flipping experience, you only know one contractor in a location, you can't oversee the project (but traveling there is a huge plus) and you want to take other people's money to do it? Who is going to verify your deals in TX to make sure you don't lose your investor's money?

This would be a fair to poor idea if you were using your own money, but a risk you would be taking on your own. But to take other people's money, there are WAY more concerns based on the little plan you have in place to start right now.

Denver is a great market. You should look around there before branching out but if you do you can definitely do this and do very well. I build residential and commercial out of state. I have great teams and systems in place and have been doing it for over 20 years so I know the markets, costs, what works and what doesn’t.

@Jake Goodwin

Might be a good idea have someone you can call on to inspect the work being performed and verify loose ends you may be curious about. I currently do this out of the Portland area and it helps to keep the GCs and subs honest.

Most contractors I work with do a decent job, but even the best will cut corners if they think they could get away with it. It’s just the nature of the beast.

Investing out of state is a great opportunity to get your dollars to stretch further. Many OOS investing require a boots-on-the-ground team in order to keep their projects protected both fiscally and physically. So, if you've got that connection with a GC then you're well on your way to get started. I would ensure, however, that you have a copy of their license and insurance for safeguarding your interests. Vet some property management teams also - you may be able to find a connection to add to that team to ensure timelines are being met - even adding a REI realtor to ensure you're crunching the numbers and getting the best deals with the most accurate ARVs will be crucial too. A few more pieces before you get started - but it is feasible! Just do your research and networking to make the most educated decisions.

Best of luck to you!!


Hi Alora, thank you for your input!  I am working on putting all the pieces together to make sure I have the most comprehensive plan possible.

@Jake Goodwin - Have you flipped a house before? It sounds much easier than it is. Doing it out of state adds another element of difficulty. Unless you REALLY trust your contractor and know the area well enough, I would advise against it. 

If you are really wanting to invest in this market in Texas. I'd fly down there for 4-5 days and meet 4 or 5 agents, property managers, lenders, and contractors each. Make sure you get a feel for each one and start building your team. You'll want more than one of each of these on your team to make sure one isn't going to screw you over AND to redundancy is always nice in case something happens.