What are your thoughts on out of state investing?

Question

Nathan Hillier · Answer

I think out of state investing is great, and to some extent offers the same challenges and risks as investing in your home market. In both situations, you need great teams you can trust to pursue investments. The main challenge with out of state is not being there - but can be solved by networking, and forming relationships with investors who are willing to be your boots on the ground, walk the property, take photos..etc.

I'm originally from Calgary, Alberta Canada, where our real estate market is very similar to California. Due to this, we have opted out of our home market, and are now investing in Dayton, Memphis, Alabama, and working on opening more markets to invest in.

With that being said, we did not open these markets ourselves.. Personally, we use the power of a collective network by connecting buyers to sellers in our markets, further giving our companies we work with more work, increasing the volume of properties sold by our wholesalers, and forming long lasting relationships with these key companies.

It was been quite the journey for myself and my family, and are always happy to share more information if you wanted to continue the conversation. Please feel free to reach out to me as i would love to share any information that may help you on your journey investing in real estate. Cheers!

Subbie Kaur · Answer

@Kanessa Page

Out of State investing is great if you are working with the right people and are in the right market!

A few things to keep in mind

1. Invest in a market that you know has high rental demand, low taxes. More cash flow and easy to keep and replace tenants in case there are vacancies.

2. Landlord friendly Laws, this will allow you to have a much more positive experience especially as an out of state investor.

3.  A GOOD PROPERTY MANAGER IS KEY! This will really allow you to have a positive experience. The property should be able to communicate with you as needed, trust-worthy, and have a clear idea about market knowledge!

Kanessa Page · Answer

@Jake Stuttgen Thanks, will look into that book.

Kanessa Page · Answer

Appreciate the feedback. Thanks!

Kiera Underwood · Answer

@Kanessa Page There's a lot of great advice here!

What it boils down to is if your market doesn't work and another market does it's worth looking into. If you can find a team that does everything for you, doesn't charge you crazy fees for it and that has been vetted by other investors. You're in a good place! People talk about the risk/fear.. but if tons of other investors have had a great experience and are cash flowing.. that's some pretty good backup to a team!

Kanessa Page · Answer

Thanks for the info!

Stephen Akindona · Answer

@Kanessa Page It really depends on your goals! If you are trying to build a massive portfolio with hundreds of properties whether it be single family or multifamily, the would be difficult in one market. If you want a few rental houses to supplement retirement much more doable.

At the end of the day if your current market is not a good fit for meeting your goals you can usually get to a market somewhere in a 3 hour drive that would fit better!

Don't be afraid to invest from a distance as there are many investor that do and find success. Get educated on how to do it correctly and go for it! I think most investors who really want to scale get to where they eventually start looking outside of their current market!

Jerryll Noorden · Answer

ABSOLUTELY unnecessary in my opinion.

There is no need to add stress and risk to your plate when there is absolutely no reason to do so. Are you getting ALL the leads in your market and it is not enough.. OK then maybe.

But I bet you are not getting ALL the leads in your market. You just need to up your marketing game and get more leads.

But who am I to judge. I am just an ape funky pits!

Do what you think makes sense. I just can't see how this can make any sense to you!

I have to add however, if you were in a similar position I am.. with Godly SEO skills... I have been thinking about  taking over every market in the USA, with website I would develop with SEO and take over all the #1 spots. Then partner with investors on the ground that will "borrow" my leads, work them and any money made will be split between all.

I then have zero risk, zero expenses, and free money!

THEN.. yes... that could work!

Kanessa Page · Answer

Thank you.

Jake S. · Answer

@Kanessa Page My thoughts are this...A lot people do VERY well with it, but alot of people don't do well at all.It all comes down to being educated about what you are doing and building a boots on the ground team in that state.I HIGHLY recommend @David Greene 's book on the topichttps://www.biggerpockets.com/store/long-distance-real-estate-investing-ultimate

What are your thoughts on out of state investing?

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