Out-of-State Investing - Looking for a succesful management strategy

Due to the fact I live in one of the absolute worst area in the country for future multifam growth I am investing in out of state properties. I realize being an out of state owner increases risk of not being succesful. I am looking for proven success strategies that have worked for other out-of-state investors. FYI I will use third-party property mgmt firms but still want strategies of how often to visit property, remote monitoring options, frequency of meeting with property mgmt firm, etc
In Buying Property - Asked by Tim E. - Dec 11, 2010
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Answer(s)

Allison B.
Corporate Investor
Dayton, OH

I suggest partnering with a good management company and doing the following.
Enlist the assistance of an additional pair of eyes such as a broker or rehab contractor who can watch the property in addition to the management company. Another suggestion is to hire the manager separate to the management company and have the management company act as an asset manager. I suggest visiting the property every 3 to 4 months and at least one of those visits should be unannounced. You should receive all reports at least monthly. Insist on a narrative report also and pictures are always a good source of information. It is always good to have the management firm do a market survey and send it to you every quarter.
Thank You
Al Barkalow
CitiMark Companies

Dec 11, 2010
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Rob B.
Chandler, AZ

Tim....
While I believe that Al B has given you a fine answer, I really have to caution you that his advice will not likely work unless you are investing in 100 units or more. Smaller properties simply will not allow you to have the layers of investment management or the visiting schedules that are suggested by him.
It might be well for you to consider investing in a REIT, a quality TIC company, or find a partner in the state where you want to invest that also has substantial "skin in the game" that will find the properties, manage the problems and generally watch out for your best interests while watching out for his or her own best interests. That way you will have more assurance that your out-of-state investment will be well serviced.
There are many out-of-state people that have literally lost their entire investments because of trusting the wrong brokers, property mangers and asset managers.
Good luck Tim.....
Rob Baird, CA RE License #544165 (One of the oldest, active licenses in CA) 951 515-5855 Email: rob@capratecommercial.com

Dec 14, 2010
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Tracy W.
Owner/Investor
Hodgenville, KY

Tim,
I can refer you to some turn-key real estate investment companies. And you can do your due diligence on the companies. They buy, fix, complete rehab/remodel with everything brand new, rent it and manage it if you would like those complete services. And they have great cash flow and returns. You can send me an email of what types of income producing properties you are seeking and you can determine if this is a fit for you. (distressedassets@gmail.com)

Dec 16, 2010
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