Investing out of home state

[Alex D.]

Hey BP!
I was just curious as to how many of you got started in regards out of state investing? How did you go about the process outside of an agent in that area? Did you make the offers through them or try to contact them with the offer directly? I imagine having them make 100 offers can get pretty hectic. It's something I'm seriously considering. I'm looking around the area constantly from craigslist, mls, news ads etc. It's actually pretty overwhelming. The issue i'm having is the areas that I have lived in or know extensively aren't areas i would invest in myself. Very high cost areas and low avg rent. Currently I'm looking around the northern virginia area as well.

[Kevin Hunter]

@Alex D., I disagree with David above a bit.  While he suggested what works for him, the key is you need to do what works for you.  If you are uncomfortable investing in Hawaii because of the prices to get started, then look elsewhere.  When doing that, things get a little bit more complicated.  You need to know the area as well as your own backyard, and you have to find people you trust.  One way to start are the forums here.  I would post a forum in the forums titled something along the lines of "Forming My Team in XXXXX(City), need help making contacts.  Make sure you have the name of the city in your post and ask for recommendations for realtors, property managers, mortgage brokers, contractors, etc....While folks are getting back to you, you need to study that area.  Learn all the neighborhoods, know the prices, understand the pros and cons (schools, crime, transiency, growth, taxes, etc...)   You are correct about an agent not wanting to make 100 offers for you.  When starting out, you need to earn their trust and faith that you will follow through.  Pick one or two or three properties that work for you and offer on those.  Once you get a deal done, your agent will know that you are for real and will entertain making more offers.  For example, I closed on a house in Shelton CT last week.  It is a four family unit in an area that I have been scouting for a long time. I don't live there though.  I found the property and contacted the listing agent and offered for him to represent both the buyer and the seller.  Now he doubles his commission and would be willing to work with both parties to get a deal done.  It benefits him.  If I went with another agent, the seller's agent may have been less willing to bring low offers(my offer was far below ask) for fear of him losing a big chunk of commission money.  Now that the deal is done, the agent is more than willing to make multiple offers on properties for me because he knows I am for real.  Keep me in the loop.  Feel free to pm me and I can assist more.  I have properties in three different states from east coast to west coast.  Good luck!