We have been doing multifamily investments, turnarounds, rehabs, and contruction for about a decade with good results for our investors.
I would say that living a world away you would be hard pressed to have a multifamily deal work out well for you without a local partner even if you could place the debt. The reason that I say this is that this business is just not that easy to make money in and to run strong properties takes full time dedication and commitment. If you buy your properties yourself you will still be subjected to the agency issues related to all the people that you will be forced to hire to run the property for you anyway- and they will not be incentivised or have skin in the game to perform like a partner would.
Third party management will be required by any lender even if you do get approved. They come with good and bad reputations and you have to actually trust them more than you would have to trust a local partner with the right profit sharing structure in the deal. My point being that if you have a partner like we structure our deals with our equity partners we don't ever make any "real" money until the deal performs to certain levels financially. With a third party management company and all their favorite contractors you don't have this true allignment of goals and I have seen it become very costly for investors from out of state, much less out of country.
That being said, cash is king in the distressed market but with distress usually comes the need for rehab, renovation, and management turnaround.
If you would like to get to know a good local partner that has integrity and a great track record and will let you talk to his current investors- contact me.
MB 35, LLC
Nov 3, 2010