Out Of State Power Team Building

[Rachel Randolph]

Hey Everyone!

My primary focus is finding and purchasing an investment property through a syndicated deal within the year.

Because I live in Brooklyn and it's extremely expensive in my immediate market, I've decided to invest out of state. I have NOT started putting a team together in these markets (Northern NJ and Atlanta, GA MSA) but before I began I'm interested in what those of you who invest out of state do to build your "boots on the ground" teams. Other then calling and interviewing, what other things can be done to create a solid and trustworthy team in my out of state markets?

Side note, I just finished listening to BP Podcast 073: Investing in Rental Properties When Your Local Area Is Too Expensive With @Mehran Kamari (Amazing Podcast and highly recommend, thanks @Joshua Dorkin )!

[Martin Scherer]

I live 1000 miles from my rentals and couldn't do it without the property managers I use.

I have owned these particular properties from 7-10 years

I have passed on some great deals in other areas simply because I couldn't find a trustworthy company.  I don't want an agent who sells me the property to manage it for me.  I want a full time manager who has years of experience and a GREAT reputation.  There are perhaps 6 professional management companies in the city I invest and I interviewed them all.  I got referrals and I asked other contractors, investors and property owners who they trust. 

Unfortunately my agent just retired so I am searching for another to take her place.  The first question I ask of an agent is "do you own rental property?"  If they don't I likely will not spend much time with them.  I do not want to train someone who really doesn't understand what I do and why I am doing it.  Find someone who is willing to present your offer even if they personally feel it is too low. Most agents shy away from an offer more than 3 % below asking.

When I sell, which is rare, I ask several agents to look at the property and give me a CMA. I ask them to then give me a price that for sure would sell in 60 days and one for if I didn't care if it sat on the market but would likely sell in 6 months. You can tell a lot about the agent from that exercise. Not the least of which is whether they are inflating the price to get a listing. I also ask questions about their comps. That tells you how much time they spent on the CMA and can they defend their adjustments to value to balance the properties. Some agents also assume you know little about what is happening in that market since you live out of town.

Attorneys? I still haven't figured that  out myself.