Anyone put David Greene's OOS Investing book to action?

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Anyone put David Greene's OOS Investing book to action?

Kyle Marek
San Ramon, CA · Member since 2018 · 78 posts · 32 votes

Like many who have read David Greene's book "Long Distance Real Estate Investing", I am interested in out of state investing for buy and hold rentals for cash flow. I live in California in the East Bay, where housing is extremely expensive, multifamilies are rare, and cash flow is tough to come by.

The point of this post is to ask if anyone else has read this book, and is in a similar situation to me? I'm ready to go into a deal right now, but nervous to venture out on my own. Is there anyone out there who could give me some advice on how they started out of state investing? Anyone who is willing to partner on a deal, or at let me observe their process for a purchase? I'd like to contribute in any way possible to make it mutually beneficial!

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Eric Bilderback
Real Estate Agent · Sisters, OR · Member since 2014 · 1k+ posts · 1k+ votes
8y

Thats a great question for the forum I will enjoy following this thread.  I read the book and looked into going out of state but couldn’t do it.  I can find deals in my area where you can get a place to close to the 1% rule (with a ton of work and some luck) and I just can’t justify the risk and stress of going out of area.  

Biggerpockets should come out with an out of country investing book! 

Have you guys checked out the CAP rates in EL Salvador or Afganistan? Build your team people come on!

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  • Caleb Heimsoth
    Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
    8y
    @Kyle Marek. I’ve read most of this book But if already been investing out of state some when I read it. It’s got a lot of good pointers but also stuff I disagree with. Mainly doing large rehabs long distance. Don’t do that to start. Good way to get ripped off.
    2Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    8y

    I just have to be a contrarian here @Caleb Heimsoth  as Caleb states I cannot think of anything risker than remote rehab for beginners.. keep in mind the author is a very experienced real estate professional and what works for him simply is not germane for beginners I know they want to sell books on this site.. but I fear there is going to be some really sad people that try to do this and simply don't know what they don't know.. all to just save 5 to 10k  extra that a flipper that does all the work and takes all the risk makes bringing you a finished product.. you can lose 10 to 20k in a heart beat doing this if not more..  Once you have a lot of experience maybe .. but boy.. no experience I don't buy it.

    Its just tough I know I fund these guys and have been for 20 plus years and we still get screwed.. 

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    2Reply
  • Will Gates
    Rental Property Investor · Maryville, TN · Member since 2018 · 80 posts · 53 votes
    8y

    As we're getting started long distance, we're approaching OOS or long distance properties from more of a turnkey perspective to get started as that might allow us to get experience with minimizing headache from rehabbing from a distance, plus that could potentially allow us to use the turnkey network (property management + their access to recommended contractors, etc.)

    1Reply
  • Eric Bilderback
    Real Estate Agent · Sisters, OR · Member since 2014 · 1k+ posts · 1k+ votes
    8y

    Thats a great question for the forum I will enjoy following this thread.  I read the book and looked into going out of state but couldn’t do it.  I can find deals in my area where you can get a place to close to the 1% rule (with a ton of work and some luck) and I just can’t justify the risk and stress of going out of area.  

    Biggerpockets should come out with an out of country investing book! 

    Have you guys checked out the CAP rates in EL Salvador or Afganistan? Build your team people come on!

    4Reply
  • Kyle Marek
    OP
    San Ramon, CA · Member since 2018 · 78 posts · 32 votes
    8y

    @Caleb Heimsoth

    @Jay Hinrichs

    @Will Gates

    @Eric Bilderback

    Thanks so much for the responses! Yes the one aspect of David’s book that sheds doubt on the whole process for me is the rehab part. The long distance rehab, especially for a beginner, seems too risky.

    I was definitely hoping to take more of a turnkey approach as some of you have mentioned! The turnkey approach is still possible using the same “team members” process isn’t it? Deals for buy and hold and cash flow in my backyard seem like they would be very very tough and expensive to come by....

    1Reply
  • Kyle Marek
    OP
    San Ramon, CA · Member since 2018 · 78 posts · 32 votes
    8y

    @Caleb Heimsoth

    And Caleb, I would appreciate any advice or insight you are willing to pass on! Let me know how you would like to communicate

    0Reply
  • Caleb Heimsoth
    Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
    8y
    Originally posted by @Kyle Marek:

    @Caleb Heimsoth

    @Jay Hinrichs

    @Will Gates

    @Eric Bilderback

    Thanks so much for the responses! Yes the one aspect of David’s book that sheds doubt on the whole process for me is the rehab part. The long distance rehab, especially for a beginner, seems too risky.

    I was definitely hoping to take more of a turnkey approach as some of you have mentioned! The turnkey approach is still possible using the same “team members” process isn’t it? Deals for buy and hold and cash flow in my backyard seem like they would be very very tough and expensive to come by....

    The turnkey properties I have bought net about 10k (not including taxes), so that’s the spread of not doing it yourself.  Even if it’s 15k, that’s still not a lot of room

    For error 

    1Reply
  • Caleb Heimsoth
    Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
    8y
    Originally posted by @Kyle Marek:

    @Caleb Heimsoth

    And Caleb, I would appreciate any advice or insight you are willing to pass on! Let me know how you would like to communicate

    Just send me a message on BP

    0Reply
  • Lior Reich
    Rental Property Investor · Tel Aviv, Israel · Member since 2012 · 163 posts · 57 votes
    8y
    @Kyle Marek I have read the book and loved It! Would not recommend turnkey And I don't recommend buying the cheapest low end properties Aanothrer to for out of state investor- look into condos , less yield but safer return
    0Reply
  • Kyle Marek
    OP
    San Ramon, CA · Member since 2018 · 78 posts · 32 votes
    8y
    @Lior Reich Thanks Lior. Why would you not recommend turnkey companies? What about properties that need minimal to no rehab?
    1Reply
  • Lior Reich
    Rental Property Investor · Tel Aviv, Israel · Member since 2012 · 163 posts · 57 votes
    8y

    @Kyle Marek

    I am not saying all Turnkey companies are bad. But I have learned that when TK companies have long distance clients  - the End Client is left with a very minimal return... dont ask me why - But I have seen it many times. Hey , My business is based on those TK companies Selling "Bad" Properties in "Bad" areas to Out of state / out of country investors.. 

    in my eyes , for the first coiuple of properties - you should DIY

    0Reply
  • Alyssa Dyer
    Rental Property Investor · Oklahoma City, OK · Member since 2017 · 1k+ posts · 694 votes
    7y

    Hey Kyle! I just wanted to say great idea as far as asking to shadow a deal! Because you're 10 months out I'm curious if you've got to do so and if it was helpful?

    0Reply
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