All Forum Posts by: Mike Anderson

Hello,

I am a very experienced investor and have bought/sold tons of deals.   

However, I limit my deals to local deals.   With my local market down to .9 months supply for houses under 250k I'm considering buying out of state.

What tips/suggestions do other investors have in this regard?

Thanks!

Mike

Hello I done it on rentals and on my primary.   Although my primary was 1 year later.

Oh, I have bought many properties in this situation.

Here are my pointers/lessons learned:

1) Make sure you understand the deposits and they are included in closing

2) Make sure you understand your state laws on giving the tenant notices to move out

3) Try your best to communicate with the tenant some will freak out when a new landlord is added.

4) Get a copy ownership to the new tenant and make sure to get keys

5) Inform new tenant by your state laws you need to do repairs and get pictures before damage is done that they claim was pre-existing....bs.

6) Be nice but be strict when it comes to paying on time, they will test you.

7) Hope for the best, and prepare for the worse.  Sometimes people sell me properties way under value because they do not want to face the bad tenant, I let my lawyer do the talking/letters.

8) Read the lease closely

Good luck...

Mike

Hello - What did you do to minimized burden on the seller?

I would invest in a area that is growing faster in equity a lot and cash flowing. Then, I would take that money. Then I would take the proceeds you make and invest in the final target area you desire to live in. That would give you a higher ROI, hope that helps?

Yes, I have done it before it worked out fine.   

The funny thing is that you have to pay yourself interest on the monies borrowed.  So in essence the interest you pay back to yourself is tax free (I believe) ask a CPA on that one.    If I''m correct you make more money tax free :)

Any CPA's that confirm this info?

Honestly, I would go with online IF you are focused enough to get it done.  You learn real estate by doing deals for yourself not others.   
I know a Million agents who have twice the time in real estate as I do but only 1/2 the knowledge.   Knowledge come from putting down your own monies, IMHO.

What are are your Top 5 markets in US for SFH? I would like to see some good discussion on how other investors are feeling.

I like Phoenix (low property taxes), Houston, Dallas, Orlando, and Tampa.

Good stuff Jared!   

Buckeye, AZ just west of Phoenix was named the fastest growing city in the United States!  Phoenix has tons of jobs coming and is a great place to live.   I expect the growth to continue as there is major construction everywhere in the city.  

Hi Nicole - Yes I have done that before in Arizona.  I'm not sure if there different state rules but I would think it would work nationwide.   Also, I been using a site called BankRate.com to find best rates.