Drawbacks of buying notes of out state

[Bryan Pham]

Hi BP,

I am curious, what are the drawbacks of purchasing notes from out of state and the tax implications? 

[Chris Seveney]

Bryan Pham

There are drawbacks and many positives. As another person mentioned, there are state licensing issues etc. that you have to deal with.

The question I ask other investor is, if you buy locally how often do you go by that property ? Many never do or once a year. When I hear that then I ask what is the difference then with buying out of state. Unless your in the industry and have close contacts who are tradespeople who could work on a house if you took it back as REO it really does not matter. I have agents, contractors, servicer and legal teams all in place and I manage them and have others put eyes on the assets and have boots on the ground.

If you manage it properly it does not make a difference where you invest