Resources for finding out-of-state contacts

[Jerry Poon]

I live in Southern California, and will be for the foreseeable future. From listening to a few podcasts and reading posts here, it seems like California is not the best place to start for newbies with not a lot of capital to begin with. What tools and resources are available to me to network with out-of-state people in the real estate business? I am mainly looking for someone who would be able to find properties, walk them, appraise them, and ultimately manage them. It sounds like a lot, but I want to do this right and find someone good. Where do I begin? Has anyone ever been intentionally screwed by someone because of the distance? How do you build trust with such a person?

[Jay Hinrichs]

@Jerry Poon 

   has anyone been intentionally  screwed by buying out of state.. does a bear sh in the woods heck yes... its all to common..   Investing out of state is super risky for those that do not know what they are doing and or have limited capital..

The thing is people in CA and in other countries think what the heck its cheap lets give it a go only to find out its very difficult and extremely risky. those that are telling you here on BP that it is  not have another agenda they sell out of state properties and only talk it up ..

I wrote an E book for Aussies on how to invest in the US as they were getting hosed left and right by US marketing companies and less than honorable TK operators.. It is appropriate for CA investors as well.

I personally foreclosed on more than 200 LA based investors that had no clue as to what they were doing got talked into buying out of state by LA based marketing companies that neither owned the asset or were licensed to sell the asset.. IT was a night mare I would never do it again..

I have just finished trying to help one LA investor that bought 3 homes in Memphis a few years back.. One is boarded up has not been rented in 2 years. the other they tried to sell on contract but the buyer put a tenant in is collecting rent and not paying on the contract and the other one the tenant just left and its 5k to rehab yet again and they are with the best management company in the market..

so if your bound and determined to go out of state

1. find a market you like and make contacts with the locals there

2. do not buy through LA based marketing companies what do they bring to the table they have never even seen the house your going to buy they are only loyal and talk up those that pay them.

3. use the same common sense if you were buying a home in LA find a reputable agent get MLS listing do not trust ARV values from promoters those are blue sky.

4. get an independent home inspection just like if your were buying a home to live in.. do this before you close and make sure you know what your getting and ask for items that are problems to be fixed prior to closing.

5. buy at the top of the market not the cheapest those will have problem tenants and its very likely you could lose all your money on super low end.

Lastly if you are dealing with out of state TK go direct no need to pay outside selling agents  its just tacked on to what your paying for the house. houses out of state are just not sold like they are on the West coast think about it why are these companies trying to sell homes 2k miles away from them... Because they know CA buyers will over pay and they could never get the same locally the locals just won't pay that amount  the locals will buy the trashed houses rehab them themselves and rent them..

Caveat Emptor