OOS or Local?

[Tyler Lingle]

I'm the listing agent on now 3 current failed OOS investments. In each scenario there were patterns I noticed: 

- The investor bit off a large rehab with almost no experience managing rehabs before in their real estate career (sounds smart to do the first one miles away right?)

- The investor managed it themselves from OOS. 

- The investor took their Realtor, Lender, Property Manager at face value, and were clearly taken advantage of. 

Personally, I would NEVER invest out of state without AMPLE experience investing close to home. The reality is, absolutely nobody will care for your property as much as you will. Having eyes on it (accountability) is huge. Additionally, I think it's always wise to cast your net wise and talk to a few realtors, property managers, etc at the beginning, and earnestly seek feedback, rather than going with the voices that confirm everything you already think. Always ask, "What could I be missing here?"

I'm curious, when do you think (if ever) it's smart to invest Out-of-State? 

[Vadim F.]

Quote from @Tyler Lingle:

I'm the listing agent on now 3 current failed OOS investments. In each scenario there were patterns I noticed: 

- The investor bit off a large rehab with almost no experience managing rehabs before in their real estate career (sounds smart to do the first one miles away right?)

- The investor managed it themselves from OOS. 

- The investor took their Realtor, Lender, Property Manager at face value, and were clearly taken advantage of. 

Personally, I would NEVER invest out of state without AMPLE experience investing close to home. The reality is, absolutely nobody will care for your property as much as you will. Having eyes on it (accountability) is huge. Additionally, I think it's always wise to cast your net wise and talk to a few realtors, property managers, etc at the beginning, and earnestly seek feedback, rather than going with the voices that confirm everything you already think. Always ask, "What could I be missing here?"

I'm curious, when do you think (if ever) it's smart to invest Out-of-State? 

Pretty certain those investors saw some viral videos and thought it was easy. If you don't have a solid team in place, you will get burned.