investing out of state

[Rody Goodman]

I am new to bigger pockets and real estate investing on the whole. But how to I begin flipping properties in another state?

[Victor Menasce]

Real Estate investing is a business like any other business. If you wanted to start a restaurant, or a hotel, or a software company in another city where would you start?

Of course you would start with a team. Real estate is no different.

I currently have projects underway in six cities. In every case I started with a team on the ground in that location. A good deal badly managed is no deal. So it always starts with the management and the quality of the management.

Finding deals is the easy part. That comes at the end of the process. Once you have a team you will find that deals are not usually found. They are created. That means is that opportunities will present themselves that require creativity. This is not simply finding a single-family home at a 30% discount. Finding discounted properties works to a degree. But in a competitive market as more and more people enter that market, the profit margins will shrink. So creativity becomes a key differentiator.