I am a moderately seasoned real estate investor in California, and I have been toying with the idea of investing out-of-state. Admittedly, the prospect makes me nervous. Does anyone have any thoughts regarding real estate holdings out-of-state. Are they more difficult to handle or riskier, because one can’t simply “drive by” and assess things as easliy. I would think that if one hires quality management companies, there should be little concern if the deal is a gone one.
Well, that’s not entirely true. If you’re planing on holding the properties as investments I would not do it. You only set your self up for a lighter wallet and consistent migraines. I have interacted with many out of state investors (mostly Californians) and I have yet to see anyone who has not lost money when dealing with residential and even the smaller commercial.
On the other hand, if the property is large enough, such as a multi million dollar building (say 200 + units) you may want to consider it. This size property would be managed by an in house management company / office / persons(s). You would need to be on location to set it up properly before you left it in the hands of others, unless you found someone who was already managing multiple buildings of that size.
Over all… Personally… I would not invest out of state. It goes without saying that a complete due diligence is very, very important.
I am also in California. I am looking for property to buy and hold, and the prices here make it too difficult.
So in about 3 weeks, I am jumping in the motorhome and spending about 3 months checking out these “deals” from other states. I will be primarily focused on OK, KS and TX.
I think long distance ownership can be done. The property would need to be large enough to support a professional property manager. And why not have some web cams installed so you can see what is going on from anywhere?
Members, I am new to the “club”. I have been investing in Atl, Ga for almost 4 years. Acquired several single family homes.
I would like to roll all my single family homes into one loan. I have about 55% LTV, great credit and good income. Does anyone know a commercial lender that will loan 700 - 1M on single family that are in the same county, but not street, etc?
MRBREEZE,
I couldn’t agree with you more. I have the same plan and is under discussion
Please start the market investigation and let us know how you strike rich
First time posting here and love all the helpful info by everyone.
Question for all the experienced investors? If you were to just stay in your immediate home market (in-state), aren’t you limiting yourself from all the other potential up and coming markets. If I had a lot of money to invest, I think a plane ticket and weeks stay at a hotel would be a small cost to find a really great investment. Obviously, I’d think that one would spend a lot of time beforehand setting up appts with potential “team” in the subject market area.
Just curious… I live here in the San Francisco area and I doubt I could ever find any properties with a positive cash flow around here…
