How to Get Started in Out-of-State Real Estate Investing

Summary

In this video, Sarah Weaver and Sulway share their experiences and strategies for investing in out-of-state real estate. They discuss the importance of selecting markets with strong metrics like population and job growth, wage increases, and rising home values. The hosts emphasize the value of building a reliable on-the-ground team through networking and referrals, and they encourage viewers to take action despite fear, highlighting how they've successfully scaled their portfolios and managed properties from thousands of miles away.

Takeaways

• 🏠 Sarah and Sulway invest in out-of-state properties, leveraging the benefits of lower prices and better cash flow in different markets.
• 🌐 They manage their investments remotely, with Sarah owning properties as far as 8000 miles away while living in New Zealand.
• 📈 Key metrics for choosing a market include population growth, job growth, wage and income growth, rent rate increase, and home value appreciation.
• 💼 Industry diversification is important to ensure a stable tenant demand and mitigate risks associated with market reliance on a single industry.
• 🤝 Building a reliable on-the-ground team is crucial for managing properties from a distance, with referrals from experienced investors being a valuable source.
• 🔍 Both Sarah and Sulway rely heavily on investor-friendly agents for deal flow, with about 75% of their properties coming through such agents.
• 📊 They also explore direct-to-seller marketing strategies like mailers, cold calls, and social media to find deals with potentially higher discounts.
• 🚀 To grow an agent network, start with online research and networking on platforms like BiggerPockets, and leverage referrals from solid team members.
• 🛑 Don't wait until everything is figured out to start investing; embrace problem-solving and take action despite initial uncertainty.
• 💪 Function in the fear: Investing, especially out-of-state, can be intimidating, but taking the leap and creating processes can lead to success.
• 🌍 Real estate investments have allowed Sarah and Sulway to travel full-time, demonstrating that with the right approach, it's possible to balance lifestyle and investment goals.

Q & A

What is the main topic of the video?

The main topic of the video is about investing in out-of-state real estate properties, particularly focusing on how to make the jump to investing out of state, picking a market, and building a team remotely.

Why did Sarah Weaver start investing out of state?

Sarah Weaver started investing out of state because she couldn't find properties that cash flowed in her home market of San Francisco Bay Area due to high home prices.

How far away did Sarah Weaver buy her first property when she moved to New Zealand?

Sarah Weaver bought properties in Nebraska when she moved to New Zealand, which is approximately 8,000 miles away.

What is Sulway's experience with investing out of state?

Sulway started investing out of state by buying properties 900 miles away and later scaled up to owning 19 units in four states.

What metrics does Sarah use to pick a real estate market?

Sarah uses metrics such as population growth, job growth, wage and income growth, rent rate increase, and home value increase to pick a real estate market.

What is Sulway's strategy for finding deals in real estate?

Sulway relies heavily on investor-friendly agents for finding deals, with 75% of her portfolio coming from such agents, half of which were off-market deals.

How did Sulway expand her agent network?

Sulway expanded her agent network by scouring the internet for investor-friendly agents, networking on forums like BiggerPockets, and building relationships with experienced investors who could recommend agents.

What is the importance of having an on-the-ground team when investing out of state?

Having an on-the-ground team is crucial for managing properties, ensuring they are well taken care of, and for alleviating the fear and anxiety associated with investing in a market far away.

What advice does Sarah give to those interested in investing out of state?

Sarah advises not to wait until everything is figured out to get started and to function in the fear, taking action despite the potential for feeling scared.

What is Sulway's biggest piece of advice for people looking to start investing out of state?

Sulway's advice is to not wait until feeling completely ready and to start taking steps towards investing out of state, even if it feels scary.

How did the speakers manage to invest in real estate while traveling?

The speakers managed to invest in real estate while traveling by creating processes and systems that work for them, allowing them to invest out of state and maintain their properties remotely.