Partner Options for Out of State Investing

[John Wright]

Hi,

I'm new to the real estate market (and BiggerPockets!) and am looking to invest around Cleveland, Ohio (grew up there). I'm based in California which I've found to be too expensive for me to get involved in rentals.

I have two friends who are interested in partnering with me to provide capital for investments and share the work of finding/reviewing properties, closing deals, and working with a management company to make sure the properties are working out.

I'm wondering what the easiest way for us to partner on these deals is. I've read here that LLC can make it difficult to get conventional funding and that I'd need to pay the $800 for California LLC registration as well as an outside entity operating in Ohio which seems to complicate things. I've also read about TIC (Tenant in Common?), but it seems to be less popular and I'm not sure why.

Additionally, I was hoping to just get more information on lending to out of state investors as well as hear thoughts from people familiar with the Cleveland area for real estate. I'm looking at the BRRRR strategy for good cash flow.

Thanks!