Out of State Investing

[Mark Rauch]

If one were to invest out of state, what would be the proper way to oversee improvements and management. In other words what should your infrastructure look like and how can you protect against property managers, contractors, handymen and tenants from taking advantage of the fact that you are not local? Have heard horror stories but it seems that the deals to look at currently are not in Los Angeles where I live. Looking to purchase a multi family in the 2.5 million zone. Worried a management company and unscrupulous people will kill my cash flow. Would a triple net property be better? Thanks, Mark

[Jeff Wallenius]

@Mark Rauch the simplest answer is to find a great team. The follow up question is how do you find those teams and verify they are the real deal? I'm going to try and keep this short. There are many turnkey operators across the nation that are successful in the single family markets and do a nice job. What you need to find his a high volume, real estate expert that has all the systems in place to do not only residential, but multifamily and commercial as well. Proven track record operators. We just put under contract 8 duplexes in Indianapolis and a cash flowing horse property in Oklahoma. I can do these projects because I have a track record with my teams in those areas, verified their work from the beginning and structured mutually beneficial deals so they have upside in everything we do. I'm happy to pass on my contacts, or discuss further if you like. There's plenty to cover on this topic and a few pitfalls to be aware of.