Question for investors who buy out of state...

[Greg B.]

How do you do it???

How do you go about buying a property miles away? I feel it's extremely risky dealing with an unfamiliar territory. How do you handle contractors or property management?

I'm looking into wholesaling and we have a ton of rehabbers locally but I want to advertise in the Marketplace one day since I've learned so much from this site. I feel I should attempt to give back. I'm just curious and would like to understand the mindset of the out-of-state investor to better package my product.

Thanks

[Brandon Battle]

You lower the risk to something you can sleep at night with by establishing good relationships and building your out of state team.First,pick an area you believe is doing well selling wise and go there.Call the local real estate agents and set up interviews and ask them about their experience working with investors.Weed out the rookies and go for the ones with at least 10 years or more under their belt.They will know everything you need to know like hottest neighborhoods,best hard money lenders,and who are the most respected contractors in the area.After finding one you like,start interviewing General Contractors that know how to lead a project and have a proven track record.Ask them for references and past jobs they have done and verify they aren't lying about it.Once you have both people in place,find a property and put them to work.You can only build trust by watching them in action.After you get home,establish clear communication with both of them.Make sure the contractors have an iPad with Skype so you can watch what is happening on the job site live and verify the work is being done and the crew actually showed up to work.Make the GC prove that progress is steady and no goofing off is happening.Once trust is established,you will be able to do business with them throughout the year and everyone makes money.