Out Of State Investing

[Ignatius Okeke]

I'm considering purchasing a multi-family property in Norman, Oklahoma City, primarily because of the nearby colleges and universities that provide rental opportunities. Since I'm planning to do this from out of state, I'm uncertain if this is a wise decision, especially since it's my first time venturing into real estate.

[Min Zhang]

Hi Ignatius, following David Greene's Core 4 strategy—realtor, contractor, property manager, and lender—can give you confidence to invest in any location. These roles are crucial for navigating the investment process and ensuring your property is well-managed. Best of luck on your investment journey!

[Samuel Diouf]

If you're looking to invest OOS, I would focus on growing relationships and building your core 4. Having a team in place is essential to long-distance investing. The core 4 consists of a realtor, contractor, property manager, and a lender. Once you have this team in place, you should have the foundation to invest in any market confidently while not being there physically.

Read this article on the "core 4". It explains the team that you should develop to have a strong foundation under you while investing remotely.

https://www.biggerpockets.com/blog/core-four-real-estate-team

[Michael Smythe]

@Ignatius Okeke how much research have you done on this market, versus just relying on what others tell you?

What team have you built in this market that will be able to support the property & you?

[Danny Gonzalez]

Hey Ignatius,

I work with OOS investors all of the time. A few things to consider when starting out:

1) Be sure you have liquidity for the down payment, but also a healthy reserve account, since unexpected costs will come up while owning real estate.  Remember, no one else was foreclosed on due to a lack of equity, it's always due to a lack of liquidity.  Ensuring cash reserves in key when starting out.
2) Visit the town you want to visit in.  Even if you have to visit $1k for a day trip, go and walk the area, meet the PM/Realtor/contractor in person.  You want to get a real feel for what you're buying and who'll be working with.  It'll be worth it.
3) Get very clear of what your goals are with the real estate.  Is it to cashflow every month?  Is it a way utilize some tax deductions?  Maybe it's a way to build generational wealth by having a tenant pay down the principal every month?  Knowing what goal you have in mind allows you to choose the right strategy to get you there.

I own a vertically integrated real estate company that ties in the Core 4 to make OOS investing simple and lucrative.  Feel free to reach out if you want more info and want to hear about some current off market deals we have.

[Rhett Tullis]

I would do your homework first.  Generally we see very few college students in most housing around the universities here in OKC Metro.  OU also has quite a few new complexes that are still not completely full.  Check things out closely before closing on anything.  

[Tom Dean]

Single family homes is what drew me to OKC, it seems not ideal for multi-family to me as it seems there's a strong preference for single family homes, it's not a high density metro. I think the market has a lot of potential for growth overall though and the people are friendly and welcoming and I feel happy about doing business in OKC so I would say if you find a multi-family deal where the numbers work then go for it but just do your research.

[Donato Callahan]

Quote from @Michael Smythe:

@Ignatius Okeke how much research have you done on this market, versus just relying on what others tell you?

What team have you built in this market that will be able to support the property & you?

 I agree with @Michael Smythe. Here's a quick video about Norman, OK. Hope it helps

https://www.loom.com/share/8046ec4ce0114890b900551ab7b2ce7e?...