Buying Out of State

[Christopher Griffin]

Hi All,

My colleagues and I are planning our first real estate endeavor on a rental property.  We are in California, so we are set on purchasing out of state.  From those of your that have invested out of state, what is the general process you go through to make a safe, sensible, and solid purchase.  What are your most efficient strategies for exploring a market once your are set on a location?  What resources do you use to help your process?  How many times do you visit an out of state city before you invest?  What should be the main things one looks for when visiting?  Do you have a general checklist to feel confident that you've performed your due diligence in an area that you are unfamiliar with?  

I think we are a bit nervous making our first purchase out of state, but we feel California isn't the the most lucrative state to invest in with our resources.  Is there any advice you can give?  Thank you!

[Jay Hinrichs]

@Christopher Griffin there are many choices out of state.. first define the asset class are you looking to put your toe in the water buying say a SFR to start.. or are you and your colleagues pooling resources so that you maybe able to buy multi family... a MHP,, or other income producing property...

Once you decide that. if its SFR you want there are literally 100 perveyors across the country providing ready to go SFRs commonly referred to as turn key.. you can check on line for reviews of companies and hone in on their inventory compare them side by side and then generally get a feel also you can talk direct with the owners and or companies. which could be a benefit as well.

Good luck.. my advice to anyone buying SFR out of state and in the cash flow Markets.

is

1.  need a great team and PM

2. do not buy the cheapest thing because the numbers look the best balance that with quality

3. if you can choose a market that you enjoy visiting that is great as well. not all markets are all that keen as destinations

Good luck