Long distance Commercial MF investing and proximity to your team.

[John Pearl]

My question for everyone is in regards to building a team for Commercial MF investing out of state, with the intent to eventually get into syndication. 

For those of you with experience in this area and invest out of state, are your team members relatively close in proximity to where you live? Or are they in the general vicinity of your properties?

I understand that certain members, such as PMs and REAs, will need to be local to the properties themselves, but what about other members? IE- accountant, RE attorney, SEC attorney, lender?

Please advise! Thanks in advance for your time!

[Michael Ealy]

Originally posted by @John Pearl:

My question for everyone is in regards to building a team for Commercial MF investing out of state, with the intent to eventually get into syndication. 

For those of you with experience in this area and invest out of state, are your team members relatively close in proximity to where you live? Or are they in the general vicinity of your properties?

I understand that certain members, such as PMs and REAs, will need to be local to the properties themselves, but what about other members? IE- accountant, RE attorney, SEC attorney, lender?

Please advise! Thanks in advance for your time!

 Your PM, preferably has to be local as he/she understands the area better and the kind of tenants that your property will attract if he/she is local. Maintenance personnel obviously has to be local. Contractors have to be local. If the PM is different from the leasing agent, then the leasing agent has to be local.

Your lender does not have to be local although, I've had the most success (lowest interest rate, highest LTV) with local banks and credit unions and those typically will lend on properties which are in the same city or at least in the same state (or within drivable distance) of where they are located.

Your attorney has have a license in the state where your property is at, same thing with your insurance agent.

Accountant and other members of your team can be remote.