All Forum Posts by: Chase Freund

Hello BP, 

How are PM companies finding properties to manage and what are investors looking for in a property management company? The current company I work for provides both renovation/make ready as well as management services. Looking to connect with more investors who would benefit having all the services they need for rentals under one company. 

What kind of expectations do investors have with real estate agents when using one to help them purchase an investment property? 

Vice versa what are the reasons that some investors prefer to not use one when buying investment property?

Personally I take pride in my ability to be available whenever an investor needs a second opinion on a deal and being the boots on the ground for my trusted investors. I can also help them find a loan quickly, contractors for rehab, and title companies for recently purchased properties. Where else do agents add value to the investor?

What are some of the biggest advantages and disadvantages investors run into when trying to complete a BRRRR exit strategy? Really looking to hear more about the downside so I can proactively help investors with their future properties.

Those who have learned how to implement this strategy seem to stick with it for a very long time so I would like to get more investors onboard with BRRRR plays.

How do agents find so many out of state investors? I am looking for new ways to connect with buyers across the nation who need off market property but am having a hard time finding serious buyers. How do you vet the buyer and make sure they are someone worth putting the time and effort into?

Looking for any advice other agents have! 

Hello BP, I am a real estate agent in the Kansas City market and work with out of state investors pretty frequently. I would like to get better at making the transaction go as smoothly as possible and was looking for some feedback from those who have invested out of state before. Here's a list of questions I have: 

1. What kind of property draws the most attention to you? (Rentals, single family flips, multi unit buildings, etc)

2. What is the most difficult part about buying out of state? Is it finding the right property, is it finding the right area, the right rehab cost, the right property manager? (I know these all play a role but I am looking for where specifically do things get difficult buying when you are not from the area)

3. Does the way you fund the purchase play a role in your decision when buying out of state? I get being a cash buyer shouldn't change much but for those who use hard money loans are there any issues that come up finding the right lender when you aren't local to the area?

Quote from @Michael Kotylo:

I made an offer this weekend on a property that was priced too high to make a profit. Listed for 320k, with rental comps around $2500/mo, which would cashflow negatively ~$500/mo, no thanks! ARV was 400k on this and it was a 1972 time capsule. I offered $280k and everyone acted like I was stealing out of the collection plate at church. I didn't care, I'm not trying to please the world, I'm making a financial decision that will either reward or hinder me.

My offer would have negatively cashflowed -$1/mo, however the appreciation and equity would have made up for no cashflow so I was comfortable at my offer price. I don't see how anyone was going to make money on this one, so it must have been owner occupants making emotional decisions. 

Is anyone experiencing something similar?

 Hi Michael, 

The MLS is experiencing low supply with a high demand which is driving the price up and making the numbers almost too tight for investors to work with. Not to mention someone usually pays well over ask now a days to lock up the property.

I recommend finding an investment real estate agent in the market you are looking to invest in. These agents (like myself) will be able to provide off market deals at a much more affordable price than on the MLS. Plus these deals are usually bought at the listing price at the time you decide to buy the property, so there are no bidding wars that drive the property outside of profitable numbers. Reach out if you'd like to hear more on off market property vs MLS listed property.

Quote from @James Kim:

Hello,

Long time lurker. I have been seriously considering OOS investing finally and am hoping the folks here can give me a list of reputable real estate agents/companies/Bigger Pocket member to start working with in Little Rock, Arkansas. I'm looking to see if doing OOS is even possible given my specific interests in passive investing (meaning I"m looking for turnkey groups or even condos in the appropriate setting). 

Thank you all,

James

Hi James,

Happy to see you are starting your investment journey with some potential rental investments! I personally am a fan of the buy and hold or BRRRR strategy for real estate investing, especially for OOS investors who aren't going to be familiar with the area. I recommend finding a real estate agent who works closely with investment property. Agents who only work with residential sales and finding families their perfect dream home don't have the same perspective as an agent who finds homes for investors. 

Plus when you work with an investment real estate agent you will be able to gain contacts to hard money lenders, property managers, title companies, contractors and more! 

Quote from @Mike Boss:

I’m looking to buy 2-4 unit out of state rental properties in the $150k range. My goal is to cash flow around $600/m from every property I buy. I currently own a duplex that cash flows $650. 

For a duplex I would prefer 3 bed on each side with rents of $900-$950 on each minimum. Price $150k and below. 

For triplex and 4 plex I would like it to be under $200k with a goal of hitting $150k price range. Gross rents need to be $2200 or more. 

I prefer realtors who own rental properties or have many clients that are investors. I plan to talk different strategies. I normally put 25% down with a DSCR loan. However, I'm thinking about doing brrrrs. My goal is to one day own 10 properties cash flowing $600/m each.

Some markets im interested in are Midwest. Ohio (Cincinnati, Dayton, Columbus, Cleveland). Indiana (Indianapolis), Pennsylvania (Scranton and Western PA)

Florida (Jacksonville, Orlando, Panama City, outside of Miami). 
Texas (Dallas, Wichita Falls). 

I prefer the Midwest and am liking Ohio. Plan to invest by the end of the summer. 

 Check out Kansas City, especially for rentals! We see a lot of out of state investors park money here because of the appreciating areas and high rent rates. You can get a couple rentals here for the price of one in Chicago! Would love to connect more on how I can help you get a portfolio going here in KC!

Hi Katy, 

That's awesome that you are looking to invest outside of your local market, I know Chicago can be spending so you will definitely get a better bang for your buck in other markets. I can only speak on the Kansas City market as that's where I specialize in. KC has lots of appreciating areas and low entry prices to great turnkey rentals or distressed property that has tons of value add potential. I recommend finding a real estate agent in the market you are looking to invest in. Especially an agent that works with investment property. They should be able to set you up with all the contacts you need to being investing out of state (Contractors, property managers, the right lenders, etc.)  

I recommend finding a real estate agent in the market you are looking to get into. Specifically an agent who deals with investment property on a daily basis. They can give you a better idea of what the true value of the area is and guide you in the right direction to do what you are looking for. Investment brokerages will also have contacts for you to get hooked up with a contracting crew and property managers if you need them. 

Far as turnkey or rehab, turnkey is obviously the easy route as you don't need to worry as much about getting a crew together. However, turnkey means you also won't be able to add much value to the house and you'll probably be paying a higher listing price.