Investor · NY · Member since 2022 · 42 posts · 31 votes
Hi, I am NY-based looking for purchase a long term/BRRR in Cleveland, and want to hear your experience with out of state investing.
Are most out of state investors closing on properties without doing physical walkthroughs? Same with rehab, are you rehabbing properties without physically being on-site to oversee the process? This feels risky to me, but this is my first purchase so would love to hear how you've handled an out of state investment. Thanks!
Buying out of state is a good option for some living in expensive markets. I would not buy a property sight unseen. At a minimum have someone you know and trust (not a realtor or PM) walk through it and video it with you, so you can ask questions. Take a long weekend and fly in to look at places. Make sure you are working with a good realtor who knows what you want and has places lined up for you to look at and is willing to spend time looking at places with you. The price of a flight and hotel is worth it.
Lender · PA · Member since 2019 · 533 posts · 461 votes
3y
@MollyPaprota I always suggest that you assemble a team familiar with Cleveland to work with on the purchase, finance and management of the property. Than you can begin your search with the knowledge that you have the people in place you can trust and depend on. If possible you should take a trip to Cleveland look at some neighborhoods and properties and meet the team members you are going to rely on. I would start small and learn the marketplace and also test the capacity of your network. If the first deal works smoothly than you can tackle a higher value project. Fortune favors the prepared. Good luck and keep moving forward.
Hi, I am NY-based looking for purchase a long term/BRRR in Cleveland, and want to hear your experience with out of state investing.
Are most out of state investors closing on properties without doing physical walkthroughs? Same with rehab, are you rehabbing properties without physically being on-site to oversee the process? This feels risky to me, but this is my first purchase so would love to hear how you've handled an out of state investment. Thanks!
I am not an out of state investor, so I cannot speak from that frame of reference. But I am an agent of them, and there are plenty of hurdles that we have tackled without them ever viewing a property in person. Walking through is easy enough over video or pictures and rehab is easy enough with a good rolodex of contractors or boots-on-the-ground partner/agent. A lot of the challenges of long distance investing can be accomplished with confidence and a team. Best of luck!
Lender · Phoenix, AZ · Member since 2021 · 451 posts · 287 votes
3y
I live in CA but invest in IN (my hometown). I have purchased some of my properties sight unseen. However, my agent either face timed me or sent me videos and I did this only after having a contractor in place whom I trusted. It hasn't been a problem for me in IN or my OOS investors I work with in Ohio. Best of luck! -Kristen
Investor · NY · Member since 2022 · 42 posts · 31 votes
3y
Hi Luka, thanks for your comment! This is really helpful - I'll definitely need to do some more work to find this. So, you physically do a walkthrough of each property you show, and FaceTime or send them a video?
I live in CA but invest in IN (my hometown). I have purchased some of my properties sight unseen. However, my agent either face timed me or sent me videos and I did this only after having a contractor in place whom I trusted. It hasn't been a problem for me in IN or my OOS investors I work with in Ohio. Best of luck! -Kristen
Hi @Kristen L Garner thank you for this insight! So even though you never physically saw them, there wasn't anything you missed after closing that you felt you would have caught if you physically went to IN?
Hi, I am NY-based looking for purchase a long term/BRRR in Cleveland, and want to hear your experience with out of state investing.
Are most out of state investors closing on properties without doing physical walkthroughs? Same with rehab, are you rehabbing properties without physically being on-site to oversee the process? This feels risky to me, but this is my first purchase so would love to hear how you've handled an out of state investment. Thanks!
I am not an out of state investor, so I cannot speak from that frame of reference. But I am an agent of them, and there are plenty of hurdles that we have tackled without them ever viewing a property in person. Walking through is easy enough over video or pictures and rehab is easy enough with a good rolodex of contractors or boots-on-the-ground partner/agent. A lot of the challenges of long distance investing can be accomplished with confidence and a team. Best of luck!
Hi @Shane Kelly thanks for your response! So do you do the physical walkthrough each time? Have you ever closed a deal that neither you nor the buyer walked through physically?
Buying out of state is a good option for some living in expensive markets. I would not buy a property sight unseen. At a minimum have someone you know and trust (not a realtor or PM) walk through it and video it with you, so you can ask questions. Take a long weekend and fly in to look at places. Make sure you are working with a good realtor who knows what you want and has places lined up for you to look at and is willing to spend time looking at places with you. The price of a flight and hotel is worth it.
Hi @Theresa Harris thanks for this! I think I'd feel better seeing the place, especially for my first buy. I will most likely take a trip and do the walkthroughs.
@MollyPaprota I always suggest that you assemble a team familiar with Cleveland to work with on the purchase, finance and management of the property. Than you can begin your search with the knowledge that you have the people in place you can trust and depend on. If possible you should take a trip to Cleveland look at some neighborhoods and properties and meet the team members you are going to rely on. I would start small and learn the marketplace and also test the capacity of your network. If the first deal works smoothly than you can tackle a higher value project. Fortune favors the prepared. Good luck and keep moving forward.
Thank you @Steven Goldman, this is great advice. I think I will take a trip and be sure I have a solid team- it's a bit harder to get a good read on my potential team all the way from NY.
I live in CA but invest in IN (my hometown). I have purchased some of my properties sight unseen. However, my agent either face timed me or sent me videos and I did this only after having a contractor in place whom I trusted. It hasn't been a problem for me in IN or my OOS investors I work with in Ohio. Best of luck! -Kristen
Hi @Kristen L Garner thank you for this insight! So even though you never physically saw them, there wasn't anything you missed after closing that you felt you would have caught if you physically went to IN?
Not really! But I buy properties that need minor work only. I haven't been doing any flips or major rehabs. Once under contract I always make sure to hire a really good inspector and I read through their notes and corresponding photos carefully. Your lender will pull a property profile too so make sure to ask your lender if they found anything unique or alarming in the property profile. And have a lender walk you through the pages of the appraisal report too!
Rental Property Investor · New York, NY · Member since 2018 · 5 posts · 10 votes
3y
@Molly Paprota
Hey Molly, I'm a former NYC resident (just relocated to Florida) so I totally get it. Out of state investing is the way to go. My wife and I have been investing in DFW. Through a family friend (a trusted realtor) who found us our broker in DFW, we've been investing with her. It's definitely a leap of faith and as others have said you gotta build a team on the ground and build trust with them. We bought our second SFR last September. We've never seen the 2 properties we own there and it's been working out great. Again it's a leap and things come up but building the team is the crucial piece. I'll eventually see these properties, maybe when we buy our third one.
Buying out of state is a good option for some living in expensive markets. I would not buy a property sight unseen. At a minimum have someone you know and trust (not a realtor or PM) walk through it and video it with you, so you can ask questions. Take a long weekend and fly in to look at places. Make sure you are working with a good realtor who knows what you want and has places lined up for you to look at and is willing to spend time looking at places with you. The price of a flight and hotel is worth it.
Hi @Theresa Harris thanks for this! I think I'd feel better seeing the place, especially for my first buy. I will most likely take a trip and do the walkthroughs.
I should note that I have bought 3 places without visiting them, but it was in a town I know well and I had a trusted family member go through them.
New to Real Estate · Bedford, NY · Member since 2018 · 22 posts · 10 votes
3y
@Molly Paprota
Hey, OOS investor from NYC suburbs. We only have a couple of properties but we did not physically walk the properties. We had a trusted investor friendly Agent walkthrough and send pictures,videos, and FaceTime. We did the same thing with renovations except with the contractor. Videos and regular picture updates. It is very similar to buying a house in state. You go through the same processes but you get comfortable via constant picture/video updates vs various on site visits. Coincidentally, I want to invest in Columbus, Ohio for LTR in the future.
Like others have advised, build/find a good team and start smaller (don’t overextend). You can always expand or scale up from there. Ask a lot of questions until you are comfortable but bet on yourself and take action. Good luck. Happy to answer/help where I can.
Hi, I am NY-based looking for purchase a long term/BRRR in Cleveland, and want to hear your experience with out of state investing.
Are most out of state investors closing on properties without doing physical walkthroughs? Same with rehab, are you rehabbing properties without physically being on-site to oversee the process? This feels risky to me, but this is my first purchase so would love to hear how you've handled an out of state investment. Thanks!
I am not an out of state investor, so I cannot speak from that frame of reference. But I am an agent of them, and there are plenty of hurdles that we have tackled without them ever viewing a property in person. Walking through is easy enough over video or pictures and rehab is easy enough with a good rolodex of contractors or boots-on-the-ground partner/agent. A lot of the challenges of long distance investing can be accomplished with confidence and a team. Best of luck!
Hi @Shane Kelly thanks for your response! So do you do the physical walkthrough each time? Have you ever closed a deal that neither you nor the buyer walked through physically?
Yes. One property we had only the inspector check out, but since he took such good pictures and was very thorough, my client and I were plenty comfortable.
Investor · Forest Hills, NY · Member since 2014 · 101 posts · 52 votes
3y
Fellow New Yorker and I've bought my properties long distance sight unseen. I think if you can, it doesn't hurt to go in person to see the property and to meet the team you'll be working with, however I think it's possible to do it from a distance also. I get videos/pictures from the realtor. There is an inspection from an independent inspector (if you're getting a mortgage) and on top of that, an appraiser goes out to appraise the property. The most important thing is to work with people you can trust. Make sure to do your due diligence with that and get references with other investors who have worked with them. I haven't done an extensive rehab though as most of the properties did not need too much work. That part might add a bit more risk so if you have the ability, maybe it's best to go in person.
Rental Property Investor · Pittsburgh & Charlotte · Member since 2019 · 4 posts · 5 votes
3y
@Molly Paprota
Hi Molly,
I just did my first rental purchase and it was sight unseen. I am from Pittsburgh, now living in Charlotte NC.
I did a FaceTime walk through with my agent / friend I’ve known for years. I noticed the selling agent was leaving each room without proper time for me to FaceTime scan and look carefully.
Don’t be afraid to push back and take all the time you need. Make them stay in each room until you are satisfied. Ask every question, leaving nothing on the table.
House was selling “as is” but I still closed them w negotiated terms. Don’t let them think you’re a pushover. I was shocked w how sketchy they tried to act. If you feel uneasy, your probably right.
Hi, I am NY-based looking for purchase a long term/BRRR in Cleveland, and want to hear your experience with out of state investing.
Are most out of state investors closing on properties without doing physical walkthroughs? Same with rehab, are you rehabbing properties without physically being on-site to oversee the process? This feels risky to me, but this is my first purchase so would love to hear how you've handled an out of state investment. Thanks!
Yes I know dozens and dozens of investors that have purchased renovated and rented 100s and 100s and 100s of properties in the Cleveland market without ever going there. Its all about their team in place
@Molly Paprota When we were searching for our property out of state we had our realtor do a physical walk through on a video chat. After that we made plans on a weekend and physically toured the property we were interested in before making an offer.
I would highly recommend especially if you are a newer investor that you tour the property as you get to see things that might not be visible on a video chat.
Rental Property Investor · Carson, CA · Member since 2019 · 185 posts · 74 votes
3y
@Molly Paprota
May sound funny but it’s really all about your team. I have to 6 out of state properties. The first 2 I went to go see after my confidence/ experience grew I didn’t feel a need to see every property that I purchased.
Hi Luka, thanks for your comment! This is really helpful - I'll definitely need to do some more work to find this. So, you physically do a walkthrough of each property you show, and FaceTime or send them a video?
Yes I do a facetime video adn show everything they want to see. Some clients want videos and pictures of major systems (HVAC/Roof/Etc) so I do that as requested.