All Forum Posts by: Michael Geraci

@Michael Geraci Well since I am in Birmingham AL I don't really need to go out of state ;) But many many of our clients are from elsewhere, some even from other countries, and its a strategy that can really work, as long as you do your homework. Many people who live in expensive markets don't have much of a choice, so OOS becomes a necessity. Regardless of the motivation though, OOS investing is just like investing near home, but with the added pressure of distance. This is what makes the vetting process so so crucial. If you have a property down the road from your house and your PM drops the ball, you'll probably notice pretty quickly because you can drive by. Finding a new PM is pretty simple, since you can go by their offices and meet them all face to face. OOS compounds all that effort because you can't see what's happening day to day (although most people who go the turnkey route are specifically looking to not be involved in the day to day) and replacing a member of your team from a distance is just more of a hassle. This means you need to be pretty picky when you're choosing an OOS investment, but all that legwork pays off down the road many times over.

Although, I guess I'd say that this added pressure might (should) make people work a little harder during the research and vetting phase than they would if they knew they could keep an eye on the property themselves, so in the end it might result in a better long-term arrangement because you know from the start that you need to pick the best possible people and there's much less room for error. That being said, I always do recommend that people just fly out and meet the top one or two turnkey providers (or self-assembled teams if you go the DIY route) on their list once they've narrowed it down. I consider it an investment in your investment, a couple hundred bucks and day or two of your time that can really give you a lot of information you can't always find online. Gut reactions are important, and sometimes even just asking to schedule a visit can reveal a lot about how a provider actually handles customer service.

Welcome to BP Michael and good luck investing!

@Michael Geraci Welcome to BP! As others have said, out of state (OOS) investing is a perfectly viable strategy and works well for many many people. One thing I would highlight is that, while there are definitely several more affordable cash-flow markets out there (primarily in the South and MidWest) the thing you should focus on most is the people. Since you won't be able to be truly hands-on, the trust aspect of your investment is crucial. So your due diligence should focus just as much, if not more, on finding a provider (if you go turnkey, fully passive) or team (if you pick your own agent, contractors, etc) that you really trust to work for you. The PM aspect is the most important, as you need someone who you trust to stand by your for 10+ years. ( As an FYI, if you go turnkey, they should do their PM work in-house, so there isn't some other third party you need to vet - the TK company should be responsible for every piece of the investment.)

When it comes to OOS investing, having a solid team working for you is so much more valuable than having the perfect market with the perfect fundamentals. A 'dream' property with a PM that drops the ball will quickly become a nightmare - so focus on people first, market second.

You'll find plenty of reviews and information on both markets and reliable providers here on BP, so make the most of this amazing resource!

Best of luck,

Clayton

Welcome to BP @Matthew Bonosky!  All the best in 2018!

Welcome, Michael! You’ll find Pittsburgh to be a very stable market compared to many others. There aren’t huge highs in values, but it doesn’t dip too low during downturns. If you need any assistance, feel free to contact me. I’m a local Realtor in this area and I would be happy to help you.

To your success,

Matt

@Michael Geraci prices in Pittsburgh at the moment are very reasonable and within reach for the average investor who doesnt have a huge amount of capital. As with any venture you need to build a good team and gt to know the market inside and out.  

@Michael Geraci when you have time PM me. I’ve been where you are as a fellow New Yorker. I can share a bit of my journey with you regarding investing OOS.   All the best to you on your journey!!

@Michael Geraci

Welcome to BP Michael.. Unfortunately our local Market prices are outrageous, investing Out of State is an excellent idea and you are right there are challenges but they get easier with time once you have a system in place..

BTW Engineers, we make excellent RE Investors. You will be surprise we have some skills that will make your transition into Real Estate easier.