All Forum Posts by: Toby Khan

I invest out of state as well and have been for few years now. My local market got out of hands where the numbers didn't make sense (still doesn't). I highly recommend David Greene's long distance investing book however when I started going out of state that book didn't exist. It took me building a team to get started there, being in tech industry (for my day job) I use flow charts a lot when architecting software so below is the flow chart that I came up with that helped a lot of my friends to go out of state as far as team building goes-

Connect with local banks (called 12 banks)>once bank is ready(not all banks lend to out of state investors from my experience)>connect with local property managers>connect with local handy man (other investors in the area share those info)>off market deals come from banks or property manager.

Also I lived in the state and am a bit familiar with some of those towns when I was in college. It wasn't a smooth beginning but as time went on things got much easier. Now I don't spend much time on managing as the property management takes care of majority of it. I visit the town couple times a year & connect with local investors over coffee or lunch-100% of my deals out of state have been off market till date. 

I also recommend for someone going out of state not to take on rehab projects-it will be a lot of work unless you are ready to spend a ton of time. In my opinion start small and very less rehab-should set someone for success. 

Hey guys-outside of Wichita does any other town in the state has a decent cash flow? 

@Dennis Tierney-Agreed. I guess us little guys keep looking and networking. At some point something will work out-if not these 3 markets then may be we will need to look else where. 

@Johnny Wolff-In my experience MN, FL & TX rarely makes cash flow and a decent (above 8%) cash on cash return. Lately I have been looking into cities are aren't on every investors list-mainly Des Moines, Oklahoma City, Omaha as all 3 have good growth record (jobs, population & income).

Hey Guys-anyone else think what is going on with the stock market is just simply weird? Another great reason why we love real estate is we have a lot more control on the asset class directly (or indirectly with partners in syndications). 

Great articles! Thanks for sharing.

@Ross Bowman-Agreed. I believe these folks are more into making a sale of their course than actually being a legit Real Estate Investor. I saw a drop shipping business marketing consultant selling his real estate course mainly because he bought a condo for himself. Also Tai Lopez ads keep popping up about real estate-to me he is a scam (jack of all trades master of none & in his case he will sell anything to make a few buck). There are a lot of these "gurus" out there who prey on beginner real estate investors.

Fellow investor!! Thank you so much for sharing your thoughts, experience, expectations and thorough knowledge about locations. This thread has been great. We definitely have a great group of investors in Wichita area. 

@Christopher J. Roche-Great ideas. 7. Don't buy from Amazon if it is available at a local store.

You won't get those numbers in Twin cities, KC or OKC. If you are buying out of state highly suggest David Greene's book Long-Distance Real Estate Investing. Good luck.