Which one of the core 4 to look for first?

General Real Estate Investing
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Which one of the core 4 to look for first?

Irvin Nguyen
Beaverton, OR · Member since 2022 · 48 posts · 34 votes

Hey guys, 

Trying to get into out of state investing as the state (Oregon) I am in isnt so landlord friendly. Currently have 1 rental that used to be our primary so all I had to do was look for a property manager. When looking for out of state, would you guys rather find a good PM and go with the agents they recommend? Of course I would still do my research on the agents to make sure we are aligned and on the same page etc. Or would you rather find a good agent then try to go with his recommendations for PM? Reason why I ask this is because I was looking into some places where the agents were highly rated on zillow etc. but the PM they recommended had really bad reviews. Its a littler harder to trust when it involves out of state stuff since I wont be there to look at houses in person, relying on other people etc. I know it all comes with risk of doing out of state stuff but  I would like to cover all my bases to decrease the chances of that happening to me. I guess long story short, is there a  1 right way to go about it? Or is it all based on preference? Based on what I have seen so far its a toss up between PM first or agent first. 

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  • Anthony Catoni
    Germany · Member since 2020 · 46 posts · 21 votes
    3y

    Hey Irvin,

    I had this same issue, I was living in SC and wanting to invest in FL. I found the agent first and then had them recommend PMs. This worked well for me because my agent was an active investor in the market I was looking to buy in and knew the good from the bad PMs. I still did my due diligence with the PM he recommended, but it makes the decision easier. See if the new market has a real estate investing FB group. Sometimes those groups will be quick to post bad PMs, but not so quick to post the good ones haha I think the trick to doing it this way is to make sure your agent is investor-friendly. When I was looking for my agent, I had some that said they worked with investors before...that's not good enough for me. I would ask if the agent is an active investor in the market I'm looking to buy in. If yes, how long ago was their last purchase, what're the numbers they're seeing, what's the worst situation you've had investing in this area, etc. I've found that helps weed out the agents that are just looking for a commission versus the ones who are actually investor-friendly and know what they're doing. Hope this helps!


    Anthony

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  • Eliott Elias
    Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
    3y

    If you find one rockstar they will be able to refer you to the rest of your core 4 

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  • Allan Smith
    Contractor · Nashville, TN · Member since 2014 · 1k+ posts · 1k+ votes
    3y

    If I were starting over, I would start with lead sources first (could be agents, i use wholesalers mostly). I would get that funnel going and the pipeline trickling in.

    then while that is going I'd make sure I have my financing nailed down because it's easier to make offers if you have a strong and confident funding strategy. Plus sellers like to see any kind of documentation you can provide for funding

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  • Irvin Nguyen
    OP
    Beaverton, OR · Member since 2022 · 48 posts · 34 votes
    3y
    Quote from @Anthony Catoni:

    Hey Irvin,

    I had this same issue, I was living in SC and wanting to invest in FL. I found the agent first and then had them recommend PMs. This worked well for me because my agent was an active investor in the market I was looking to buy in and knew the good from the bad PMs. I still did my due diligence with the PM he recommended, but it makes the decision easier. See if the new market has a real estate investing FB group. Sometimes those groups will be quick to post bad PMs, but not so quick to post the good ones haha I think the trick to doing it this way is to make sure your agent is investor-friendly. When I was looking for my agent, I had some that said they worked with investors before...that's not good enough for me. I would ask if the agent is an active investor in the market I'm looking to buy in. If yes, how long ago was their last purchase, what're the numbers they're seeing, what's the worst situation you've had investing in this area, etc. I've found that helps weed out the agents that are just looking for a commission versus the ones who are actually investor-friendly and know what they're doing. Hope this helps!


    Anthony


    Awesome! Thank you for the advice!  

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  • Irvin Nguyen
    OP
    Beaverton, OR · Member since 2022 · 48 posts · 34 votes
    3y
    Quote from @Eliott Elias:

    If you find one rockstar they will be able to refer you to the rest of your core 4 


     Sweet! Back to the search board for that person! 

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  • Irvin Nguyen
    OP
    Beaverton, OR · Member since 2022 · 48 posts · 34 votes
    3y
    Quote from @Allan Smith:

    If I were starting over, I would start with lead sources first (could be agents, i use wholesalers mostly). I would get that funnel going and the pipeline trickling in.

    then while that is going I'd make sure I have my financing nailed down because it's easier to make offers if you have a strong and confident funding strategy. Plus sellers like to see any kind of documentation you can provide for funding

    Ah true. I never looked into wholesalers for leads and stuff yet. Will have to check that route also 
    0Reply
  • Henry Lazerow
    Real Estate Agent · Chicago, IL · Member since 2017 · 2k+ posts · 2k+ votes
    3y

    Agent first. If the deal is not good it won't cashflow even with the best PM. Also if you buy in class A areas you can self manage even from out of state with a lockbox/handyman, it can be a huge saving and make the numbers come out similar to lower class areas with managers.

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  • Simon Ashbaugh
    Realtor · Columbus Ohio, Cleveland Ohio · Member since 2022 · 849 posts · 830 votes
    3y

    A true rockstar realtor should be able to give you contact info of the others, id start there!

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  • Caroline Widjaja
    Rental Property Investor · Los Angeles, CA · Member since 2018 · 84 posts · 54 votes
    3y

    I live in LA but 90% of my investment properties are out of state. I always find a good agent first, then when the agent send me their PM recommendation, I always compare all of them. A very good agent will tell you the good and bad of each PM. Finding a good agent is not an easy task, it's like you're interviewing them for a job, be prepare to ask a lot of questions to them. To be successful in the real estate investment business, you're going to need a very good agent, contractor, and PM. 

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  • Caroline Widjaja
    Rental Property Investor · Los Angeles, CA · Member since 2018 · 84 posts · 54 votes
    3y
    Quote from @Irvin Nguyen:
    Quote from @Allan Smith:

    If I were starting over, I would start with lead sources first (could be agents, i use wholesalers mostly). I would get that funnel going and the pipeline trickling in.

    then while that is going I'd make sure I have my financing nailed down because it's easier to make offers if you have a strong and confident funding strategy. Plus sellers like to see any kind of documentation you can provide for funding

    Ah true. I never looked into wholesalers for leads and stuff yet. Will have to check that route also 

    If you're just starting to invest properties in other state, don't go this wholesaler route unless you really know the area, sorry if I have to tell you the truth.
    The reason I am telling you like this is because when you have enough experience, you will know which wholesaler is giving the real figures and which one are not. You will thank me one day. 

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  • Irvin Nguyen
    OP
    Beaverton, OR · Member since 2022 · 48 posts · 34 votes
    3y
    Quote from @Caroline Widjaja:
    Quote from @Irvin Nguyen:
    Quote from @Allan Smith:

    If I were starting over, I would start with lead sources first (could be agents, i use wholesalers mostly). I would get that funnel going and the pipeline trickling in.

    then while that is going I'd make sure I have my financing nailed down because it's easier to make offers if you have a strong and confident funding strategy. Plus sellers like to see any kind of documentation you can provide for funding

    Ah true. I never looked into wholesalers for leads and stuff yet. Will have to check that route also 

    If you're just starting to invest properties in other state, don't go this wholesaler route unless you really know the area, sorry if I have to tell you the truth.
    The reason I am telling you like this is because when you have enough experience, you will know which wholesaler is giving the real figures and which one are not. You will thank me one day. 


     Hey Caroline,

    No need to apologize, I appreciate all the honesty, I rather have that than be presented false info! I really want to avoid being mislead especially since still being so new into this all so I will take any advice I can to note and learn from. So thank you! 

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