Hi,
This was HOW I got started in real estate investing over five years ago. I was in an area where the numbers didn't make sense for the type of homes I wanted to invest in so looked elsewhere.
I developed a criteria for exactly what I was looking for, and a spreadsheet that would "prescreen" all based on financials that were acceptable to me (I wanted at least 300.00 positive cash flow after all expenses, vacancies, etc.).
I then screened the dickens out of realtors to find one that would work remotely. I was also preapproved for the loan which made life easier. I'd then find houses that appeared ok, and run them through the analysis. Of those that passed the criteria, I would send to realtor who would then go examine and develop the rehab estimates for. Some she would say- no, its not an area you want, others she knew the house and nixed. Her help was invaluable.
Of those that met the criteria, it became a simple process of making offers, and negotiating the deal. We would do a remote closing so I didn't have to go there.
The realtor then managed the rehab (she was a property manager for the rentals in her Century21 office so all relationships were already vetted). She connected me with contractors, etc. who would then direct bill me. As a result of her relationship, the work was finished before any payment occurred.
She then rented and manages them. She does this to this day, so it has worked out for her as well. She has since given me access to MLS as a "listing assistant" so I can prescreeen even more.
I then set up a local bank account for which she deposits the rent, and in turn automated payments to mortgage company from it for a truly handsoff investment. I literally check the account on designated day and see what the deposit was (there is some variability due to needed repairs, etc.).
This is the model we still use to this day. I'm a little guy- only have about 6 rentals. Those six rentals gross about 7000/month and net about 2500. I've never really experienced the pitfalls some have with tenants from hell, or gotten calls in the middle of the night. I do have some pretty funny stories, but my experience has been GREAT. The other economy of scale with this approach is all of your rentals are geographically close to each other and better managed as a result.
That little beginning is what today allows me to pursue my dream of helping others via real estate while not fretting that my high paying job went the way of the dodo.
In this response, I meant to give you a generalized blueprint for what worked for me. If you'd like more information, or the analysys template, just shoot me a private message and I'll send it to you.
Where I lived at the time was about 600 miles from where all the rentals are.
Good luck!
Jim
