Long Distance investing. Recommendations for assembling a team.

Long Distance investing. Recommendations for assembling a team.

Architect · Brooklyn, NY · Member since 2020 · 25 posts · 26 votes

Hey BP community, I've been looking more and more into out of state / long-distance investing for my first property and wanted to get a sense of how others have handled starting out in this same direction. I have a pretty good sense of my criteria (price, deal size, and geography) - I'm looking at SFH and smaller MFH (2-4 units) in the Columbus, OH market. My next step is to assemble a team that can help me make the right decisions and be my boots on the ground, but that's where I'm getting a bit overwhelmed...

I know I can search and network through BP, even get some recommendations from other members here, and research to death on Google to find a seemingly endless amount of lenders, property managers, agents, lawyers, etc., so I'm curious how others made a decision on who to go with and why? What criteria do you look for in each of these "team members"? What are key questions to ask? Is there such a thing as "finding the right ones"?

I guess I'm struggling a bit with the paradox of choice / choice overload, which is leading to a bit of paralysis. Hoping to get a bit of guidance so I can get my team organized and set myself up for making my first purchase.

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    Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    6y
    Originally posted by @Lee Ripma:

    @Junix Alcayaga

    You don’t need a team until you are in escrow. The only team member you need until then is a realtor.

     While this is true this advice can get you into trouble. Your Realtor will not be the one managing the property. There are a bunch of properties I have been wrong on. One of the property managers I refer out a lot, @Donny Thompson, has way more experience than I do in managing properties all around Columbus. I have 24 units that I have been managing for 3 years. He 50x that amount of units he has been managing for 30 years.


    I advise my clients to develop the team of 4 as soon as possible so they can move with more confidence. When analyzing a deal a buyer should reach out to all 4 of their team members for advice.

    I even have clients that will walk the property with their contractor before making an offer. When they go to make the offer they will put 0 contingencies in the contract which allows them to with bids at lower prices.

    See this reply in the discussion

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    • Investor · TX · Member since 2020 · 56 posts · 54 votes
      6y

      I am REALLY long distance, although an experienced investor, and so I knew what I would need.  I started by using realtor.com to identify some properties of interest, and then contacted the LISTING AGENT.  It took a couple of tries, but finally got one who is an investor herself, does property management, and was willing to be my boots on the ground for some of the distance challenges (like having to do EVERYTHING online, including closing).  She is also well-connected in the community, has been able to hook me up with other professionals I needed, such as a great handyman.  The whole thing was smooth and we closed in 10 days from offer to keys ... from Germany.  She was also able to rent the house out for me for a flat fee to a great tenant, for more than I thought it was worth.  I would say, start with a realtor, but not any realtor.  Do your due diligence and make sure they truly are the right one! 

    • Real Estate Broker · Kansas City Metro · Member since 2015 · 2k+ posts · 1k+ votes
      6y
      Originally posted by @Yolanda Brown:

      I invest out of the state I live in. I looked for a PM and the PM recommended contractors. You could also ask the realtor. Bam, you got an OOS team.

      That is exactly right. Don't need to make it harder than it is but do spend tons of time researching. 

    • Rental Property Investor · Twin Cities, MN · Member since 2019 · 122 posts · 150 votes
      6y

      @Junix Alcayaga

      A local broker, and a leap of faith.

      Spend six months building a relationship and only buy when you feel comfortable.

    • Architect · Brooklyn, NY · Member since 2020 · 25 posts · 26 votes
      6y

      That's awesome @Debbie J. Skora! I have a friend who has a similar story with how they stumbled upon a listing agent that doubled as a property manager and had an established team already. Definitely sounds like it would make things run smoothly :) Very cool to hear about your out of country experience!

    • Architect · Brooklyn, NY · Member since 2020 · 25 posts · 26 votes
      6y

      @Alex Olson, simple is good! Will try not to over analyze too much.

    • Inspector · Fort Lauderdale · Member since 2019 · 223 posts · 51 votes
      6y

      Junix you can find highly trained and well qualified inspector from a national credited association tike InteNACHI

      https://www.nachi.org/certified-inspectors

    • Architect · Brooklyn, NY · Member since 2020 · 25 posts · 26 votes
      6y

      Thank you @Account Closed. I understand the "just do it" attitude (heck, we all know it through Nike!) and agree that at some point you just have to jump in and go for it, but I really appreciate your advice of buying on my own terms when I'm comfortable and ready!

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