All Forum Posts by: Doug Spence

@Kathy Creighton-Smith I highly recommend @Cara Sides and The Propety Center. They're fantastic!! I'm an out of state investor as well, and own a SFH in Tulsa, and a duplex in OKC, both managed by The Property Center.

Feel free to reach out if you need anything!

@Aileen Soriano-Pisaturo Welcome to BP! The "purple bible" was hugely impactful for me as well early on. 

I live in a high cost of living area (San Diego) and I've done a lot of out of state investing in the last 7 years or so. I own properties in Milwaukee, Oklahoma City, Tulsa, and Pensacola, Florida. I've used the BRRRR strategy, turnkey strategy, and I rent out property I've previously lived in as well.

You're asking the right questions, but the answers are too long for a single forum post. 

Location: The population is generally moving south and east, so I would focus on the sunbelt states. If there are any markets where you have a competitive advantage (you know someone involved in real estate in a particular market, you grew up there, went to college there, etc). 

Finding people: I love using the BP forums to find investor friendly agents and property managers and lenders. You'll need to vet them thoroughly though. I'm happy to share some solid interview questions I've used in the past. 

You're on the right track! Keep asking questions and connecting with people that have already done what you want to do, and you'll achieve your goals. 

Good luck and keep us updated on your progress. 

Following! I submitted a seller finance offer last week. I believe the seller typically hires an attorney to draft up the agreement and it gets recorded with the title company. 

But if you're assuming the loan, thats going to be with the lender I believe. 

I think a seller financing option to cover the difference would potentially be easier and faster than getting a second mortgage (and definitely less paperwork...)

I'm curious if this strategy - seller financing to cover the gap on a VA purchase - has even been done.

@Kevin G. Great questions! I live in San Diego and I've been investing out of state since I moved here in 2018, with an investing focus primarily in Oklahoma, Wisconsin, and Florida. I've done two out of state BRRRR's and two out of state flips, and I also purchased three turnkey properties. I've invested in numerous syndications as an LP.

I've sourced deals both on market and off-market, and I think the best way (especially now) is finding that investor-friendly agent that is willing to submit lowball offers on homes that have been on the market for a while. Your agent should also have access to off-market deals, and that should be one question (of many) you ask when vetting your agent. 

For a BRRRR, I take the ARV*.75 then subtract estimated rehab costs. These are tough to find but they are out there! The tough part now is finding something that rents for enough to cover the mortgage with these higher interest rates. That's why it's challenging to BRRRR these days.

If you want to BRRRR successfully, you ideally want to find properties that don't qualify for conventional financing because they need SO much work. That leads you to need a HML or private money (private money is my preference) so you can pay cash.

As for contractors, I like to leverage the property manager's network of contractors. They are already vetted and have a relationship with the PM so you're less likely to get screwed. Plus the PM can verify the work before payment is sent. 

Good luck! Keep us updated on your progress.

@Will Golden I've purchased 3 turnkey investment properties in Milwaukee, and I've done two out of state BRRRR's. I think it comes down to how much time you have to dedicate to real estate.

If you have a highly time-consuming W-2 job, then I recommend turnkey or something similarly passive. If you have some extra time and you think you would enjoy the process of doing a BRRRR, then I recommend the BRRRR, because its a much better use of capital.

Good luck and keep us updated on your progress!

@Dennis Fernandez I have the team, but the deals are tougher to find than they used to be. How are your sourcing deals?

@Benjamin Carver Have you seen any VA loan assumptions in which the buyer gets seller financing from the seller for the difference between the loan balance and purchase price? Could be a creative way to bridge that gap.

Wow solid deal! Which website did you use to find the deal? How did the negotiating go with the wholesaler?

@Brendan Harrison Agreed! I did one BRRRR in Tulsa that I still own, and two flips in the Tulsa area. Currently looking to buy more but these rates don't make it easier!

Good luck to you!