New to investing and looking to invest out of state.

[Carlos Ibarra]

Hello BP,

I am new to real estate investing and am currently trying to learn everything I can about rental properties. My goal is to acquire a small multi-family property next year but out of state. I currently reside in California and I have been looking into markets out of state such as Texas and Nevada. Are there any tips or things I should be cautious about when it comes to out-of-state investing?

Thank you, all feedback is greatly appreciated.

[Steve Rozenberg]

@Carlos Ibarra

I would make sure you invest time in figuring out your end goal and what you want out of the investment properties. After you create your Goals then you create the strategy of how to achieve that goal, once that is created then you look and form your team based on your goal and your strategy. 

This way you have your end result and see what area of the country matches what will get you to your goal. 

We have many investors from out of state and out of country that buy in Texas and before we help them find properties I think a strategy session is vital to make sure of success for both our clients and our team to help them achieve their goals. If it is one sided it will never work.. for either side.

Take time to figure out what your goals are and your strategy is and then pick the area that matches and then the team to help you get there.

As for PM companies like mine... I would look up NARPM and start with them..Below are some questions I would think would be a good starting point for you to see who really treats their company like a business or a hobby.

My business partner is a regional VP for NARPM and I am happy to help if you need anything please reach out

Questions to Ask prospective management companies

• What are your average days on market for vacant homes?
• What is your average rent amount for all properties managed?
• What is your average work order cost for the owner?
• What is your average make ready cost for the owner?
• Are all my invoices uploaded to my owner portal?
• How do you advertise your vacant units?
• Do I receive video of my pre and post make ready?
• Do you have a setup fee?
• Do you upcharge on maintenance?
• When do you make owner payments? How often?
• Are you a Certified Property Manager?
• Are you a member of NARPM?
• What is your Guarantee?
• Do you provide move in and move out reports
• How many pictures do you take of the property prior to tenant moves in and after the tenant moves out
• Do you get weekly reports when the property is vacant what prospective tenants are saying about your home
• Do you provide monthly newsletters to your tenants
• Do you hold investor education classes to help me become a better investor
• Do you have single point portfolio based management services?
• How many properties do the owners actually own themselves?
• What do you do to ensure that the tenant is responsible for security deposit disputes since that is the largest reason for owner lawsuits
• How familiar are you with the newly changed laws that can affect you the owner if they are not used correctly?

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