Investing Out of My Home State

General Real Estate Investing
1

I plan to invest out of my home state since it (CA) is so overvalued. I can’t get cash flow here. I plan to buy/hold and get decent cash flow in TX. I’ve never invested out of my home area and is kinda nervous about not being there for all the important stuff. I can’t just fly out there at a moments notice. I plan to at least fly out there before I buy. I will inspect the property myself once a year.

I spoke to a number of management companies since this is my only option. I don’t know anyone I can trust in the area. I have to rely on my telephone interviewing skills and go with my gutt feeling. Of course referrals from investors in the area will be solicited. I’ve read a couple of books about landlording and understand it all. But most of the landlording will be done by the property management company anyway. I realize I have to protect myself with a good attorney. Also, a good CPA should be in my team.

Questions:

  1. Any experience in investing out of state using a property management company, I would sure like to hear your experience and advice.

  2. Does anyone have an out of state investment but not use a management company? If so, how do you do it?

  3. Should I setup a land trust now, get an attorney, and a CPA even before I buy?

Thanks in advance.

2

Currently, I don’t own or control a property (other than my personal residence) within less than 500 miles of me. All of the properties I’m involved in, I’ve never even seen and don’t use a property manager. Using a landtrust, depending on how it’s structured, coupled with a NNN lease works very well for controlling out of state properties. Just to give you an idea, I control 4 properties in MI, 3 in St. Louis and am in the process of “closing” on 11 units in Texas. Maybe you’d be interested in partnering on a deal or two or a dozen?
Regards,
Dave