All Forum Posts by: Tychua G.

@Tychua G. I'm in the middle of reading Long-Distance Real Estate Investing written by BP's own David Greene. It's full of lots of fantastic, practical advice for getting started out of state. Best of luck to you!

@Tychua G. I suggest you learn to syndicate bigger deals (80 units +) so you can hire professional property managers, who will know local contractors and other vendors. Find a real estate attorney licensed in the state where the property is located and they will connect you with Title and escrow companies, when needed (seller often chooses these services). Your Syndication Attorney is separate from your real estate attorney and can be located anywhere as they operate under federal law, but you want one who focuses on this practice area to properly structure your company and help you comply with securities laws. There are lots of good books on Amazon, podcasts, and real estate trainers who can help you get started.

When I started investing out of state, I opted to use assignments.  With a property hundreds or even thousands of miles away, buy and hold and all the associated management issues was beyond my comfort zone. Still, I saw the value in virtual investing and with some research and talking to another investor who was already successful doing this, I followed his path.  Lease option assignments allowed me to invest in properties without risk and with minimal cash out-of-pocket.  Years later, with more cash and experience I can utilize other strategies, but for getting started that was my entry point to investing at a distance.

Hi

I can totally relate to the situation you are facing. For me, I am in WA (king county) . The real estate market has been on fire and its impossible to have +ve cash flow given the prices and rents. So last year I researched and locked in on DFW area for future investments. Here are some do’s and don’t’s from my experience.

Do’s

• Get referrals for Property Agents , brokers and real estate firms you want to work with. In all appreciating markets there will always be people who want to make quick money instead of putting in the hard work needed in this business.
• Interview lots of Property Management companies, even after due diligence be ready to change PM’s when you are not getting the kind of attention and information.
• If you have found these 2 then you are on solid ground, most PM will take care of handling the contractors. Good ones don’t need too much supervision, but in my experience you will have to show PM’s that they need to earn your trust. Early on I found double charges, numbers not adding up all the time, but once you build the repo your PM should adapt to providing the level of details you want in their reports.

Don’t

• I did a blind leap of faith based on redfin, some county data research. Insist on better ground report and ensure neighborhoods, schools , crime and drugs data. In my search it will be tempting to see similar property coming in 20K cheaper, don’t fall for that. There always are reasons for discounts and sometimes the reasons will be out of your control. For example if you found about the crime in area after a property is under contract.
• Be careful and don’t have all the dependency on the agent or broker you select- I mean don’t always use the property inspector and lender who are friends with the agent. Get to know these people from other networks or acquaintances. You want to ensure that across your team your interests are looked after. Sometimes if you see that you have most skin in the game BUT are always getting paid last then challenge that status quo and change it.

OOS seems scary and it is because you have lesser control and there are more variables. But with the right team, you get cushioned from day-to-day hassles of being a landlord as well. There surely will time when that 6-8 % management fees seems like the best money you spent.