Logistics of investing from Afar

[Phillip Vaughan]

I have a logistical question for those who are brave enough to invest out of your state. Assuming you have your team in place, real estate agent, contractors, management company; how do you handle the rehab? when you buy the property do you have the real estate agent hand the keys to the PM and the PM lets the contractors in the door? who gives the final approval for the rehab? and if you physically fly out to the location, at what point do you fly out - to look at homes? final inspection of rehab work?

As someone from California I have been trying to play this idea out in my head and get down to the logistic details on how this would play out.

[Chris Grenzig]

Phillip Vaughan we have property manager oversee all rehab on properties when it's out of state. On sites that need less lifting like just some interior renovations, than it's less important to go out and see it as frequent. On the flip side we've also bought some more run down stuff that needs a lot of work and we'll go out somewhere along the rehabbing process of it as well once it's done. Also have our property manager do tours of the properties and take videos on the more run down stuff so we can get an idea of how it's going.

I would also suggest, once in a while, visiting any property you own with little to no notice so you can see how it actually is on a day to day and not after a PM has cleaned it up knowing you'll be there.

There's no right answer of when you should or shouldn't, it'll all depend on what will make you comfortable and what you can afford.