New Out of State Investor

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New Out of State Investor

Matthew Crawford
New to Real Estate · Member since 2021 · 11 posts · 6 votes

Hello everyone! I am at the beginning of my investment journey with the goal of purchasing my first three properties this year in the Charlotte, NC area! I've done my homework and am ready to take action and purchase my first BRRRR within the next 60 days. Not only am I out of state, I'm actually out of country stationed in Japan.

     My goal is multi-family, but I'm not against starting out with single family to learn and grow my funds to be in a better position to go after multi-family. Long term, I want to take the next six years to completely replace my W-2 income with real estate so I can retire from the military in 2028 and live anywhere off of the passive income. 

     I know I'm not the first to do this, but I am having some areas that I am struggling to wrap my head around. For example, if I were to buy from a wholesaler, what are some ways I can close the deal/provide downpayment/sign contracts from the other side of the globe? On the lender side, I had one tell me that I needed to go to the Embassy to sign the paperwork, I'm curious what others have done in a similar situation and what my options are or some tips and tricks people have learn along the way. Thanks!

-Matt

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  • Michael J.
    Real Estate Agent · Greenville, SC · Member since 2021 · 210 posts · 142 votes
    4y

    First, thank you for your service!  Everything is pretty much done electronically these days.  As far as where you have to go to sign paperwork, I'm not sure about that.  When working with a wholesaler, they can send you the assignment contract to sign electronically (hellosign, docusign, etc) Then you can wire your earnest money to the title company.  Then when its time to close you would wire your downpayment as well.  I'd make sure to have a home inspector or a contractor go out and inspect any properties you would potentially purchase since you are not in the country.

    0Reply
  • Lara White
    Rental Property Investor · Oklahoma City, OK · Member since 2020 · 309 posts · 184 votes
    4y

    @Matthew Crawford just like @Michael J. said - most things can be done electronically, and if you have a good team here, they can handle the inspections, etc for you! 

    But if the lender/title company needs 'inked' signatures -  You may need to go to an Embassy for signing (if lender required but seems a little extreme), but a notary should be able to witness it as well (they do all the time for out of state contracts here)- like at Pentagon Federal (or the Community Bank there on base - I'm not sure what base you are at, but that was the one on Kadena I think!).  Then you'll just 'overnight' it back to the states - (several days to a week in reality).

    So, the title company will send you electronic copies you will print out, (you will have to pre-sign a few days ahead of closing more than likely), get witnesses by a notary, 'overnight it', and when your inked signatures are back stateside, they will fund the loan.

    We were stationed in Okinawa for a couple of years - LOVED it - but it is a pain to try to do business with the time difference. I have an investor client in Okinawa right now, and it can be several days delay between questions/answers/back and forth  - which isn't idea, but still doable.  Best of luck - let me know if you have other questions I might be able to help with!

    0Reply
  • Matthew Crawford
    OP
    New to Real Estate · Member since 2021 · 11 posts · 6 votes
    4y

    @Michael J. thanks for the insight. I think the time difference is what's confusing me for whatever reason. Moving forward, I'm just going to have to get up at 2am or whenever to do the wire transfers. I do have a contractor, best friend from high school actually. I think I will need him as my "eyes" at the property and get pictures or a video of the property and his opinion/bid. Then I can run the numbers and make the decision from there. 

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  • David Bain
    Agent · Honolulu, HI · Member since 2017 · 97 posts · 48 votes
    4y
    Aloha Matthew,

    I've got a pretty solid connection in the Charlotte area for exactly this.  I'd be glad to make the connection for you! 
    0Reply
  • Colleen Goldstein
    Real Estate Broker · Matthews, NC · Member since 2017 · 135 posts · 99 votes
    4y

    @Matthew Crawford Hey Matthew, small multi-families are an ambitious goal in Charlotte as there are so few they are overvalued in terms of purchase price to the point where (IMO) you're better focusing on single family or straight to commercial. Feel free to connect, happy to be a resource and boots on the ground if needed. Thanks!

    0Reply
  • Andrew SyriosPro Member
    Moderator
    Residential Real Estate Investor · Kansas City, MO · Member since 2014 · 10k+ posts · 5k+ votes
    4y
    Welcome aboard Matt!
    Podcast Guest on Show #121
    0Reply
  • Jason SimonPro Member
    Rental Property Investor · San Francisco, CA · Member since 2020 · 18 posts · 7 votes
    4y

    Hi Matthew,

    Congratulations on starting your investment journey and thank you for your service. I faced a similar situation as I was overseas when I closed on a house. There are virtual notary's based out of VA but most title companies won't accept those. It's worth double checking with yours first. If so, problem solved. If not, you will have to go to the Embassy because a notary has to witness on US soil for reasons I never fully understood. That's what I did and it cost a few hundred dollars plus the cost to mail the documents so not ideal but not much you can do. I do wonder if because you're on a military base there might be exceptions so again, check with the title company. Best.

    0Reply
  • Doug Spence
    Investor · San Diego, CA · Member since 2016 · 1k+ posts · 975 votes
    4y

    @Matthew Crawford Welcome to BP! I'm also active duty and I invest in RE from out of state. Have you read David Greene's books yet? Long Distance real estate investing and his BRRRR book are fantastic.

    I was in your position about 18 months ago, and I learned that I needed to start my own deal funnel to source off market leads. Most of the deals I was seeing from wholesalers and on the MLS were not deals at all - I had to get straight to the sellers.

    Charlotte is a great market but is very competitive so you're going to need an edge of some kind or you'll have to pay up!

    I'm happy to chat more about my journey if you want and see if there's any way I can help you out. 

    Best of luck and keep us updated!

    0Reply
  • Wade Woo
    Real Estate Consultant · Manassas Park, VA · Member since 2019 · 74 posts · 19 votes
    4y

    Why did you pick Charlotte, NC?  Who is going to manage the properties?  Do you have boots on the ground to manage the properties?
    How much do you have to invest?  How much net cash flow per month do you need to retire?  DM me if it's too personal to post publicly. 

    0Reply
  • Justin WindhamPro Member
    Banker · Nationwide · Member since 2015 · 4k+ posts · 1k+ votes
    4y

    @Matthew Crawford

    Welcome to Bigger Pockets!

    This is a great place to learn and network.

    There are some pretty nice discounts on many products and services offered as Perks to BP members that you might want to check out: https://www.biggerpockets.com/perks/pro

    0Reply
  • Matthew Crawford
    OP
    New to Real Estate · Member since 2021 · 11 posts · 6 votes
    4y

    -Matt

    0Reply
  • Matthew Crawford
    OP
    New to Real Estate · Member since 2021 · 11 posts · 6 votes
    4y

    @Doug Spence Thanks! Yes, I have read them both and also Investing with No and Low Money Down. After reading those, watching plenty of YouTube and podcasts, I feel that I'm ready to make my first move and close on a deal. Being 14 hours ahead of my target market is one of my biggest issues right now. I'm stuck on the fact that I do not have a solid person in the area I can rely on to look at potential properties and work with to close the deal in the short time frame. 

    How did you find someone to work with as your boots on the ground since you were out of the area?

    -Matt

    1Reply
  • Doug Spence
    Investor · San Diego, CA · Member since 2016 · 1k+ posts · 975 votes
    4y

    @Matthew Crawford Great question. You gotta find that rockstar agent and property manager. I would start connecting with (and interviewing) agents and property managers in your target market via the BP forums. You need to make sure they are "investor-friendly". I have found some great team members here on the forums. Be very clear on your criteria and what you're looking for and how you will fund your deals. Agents are very busy and you don't want to waste their time. I believe the BRRRR book has some great screening questions to ask prospective agents, PM's, lenders, etc.

    You'll also need to figure out how you will sign for properties. Some title companies will let you sign closing docs digitally, but most do not. Maybe you can give a power of attorney to someone in the states, or you can work with a local notary to figure that out. 

    Let me know if I can help out with anything. Good luck!

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