When Sarah Weaver decided invest in real estate she lived over 7,000 miles away in New Zealand from her target market – the United States!
Today she has 11 properties including both short term / Airbnb and long term rentals.
Watch as Sarah shares how she successfully bought and managed rental properties at such a long distance.
Transcript:
Chris Bounds 00:02
How are you doing Sarah?
Sarah Weaver 00:03
I’m good, really good. My sceneries a little bit different. I’m looking at a cornfield today. So I’m no longer in New Zealand. I’m now in the Midwest of the United States.
Chris Bounds 00:13
A little different scenery. But it’s still impressive. It was LinkedIn, just watching your post and you’re buying these properties, but you live in New Zealand. I’m like, “Okay, how does that work?” So here we are. We got a whole show just on that. How are you successfully?
I mean, anyone can buy a property out of state but there are little cash cash flow machines. Yeah. How are you buying these cash flow machines from out of state or out of country 7000 miles away? I know, you’re not that for now. But you did it before. How’d you do that and how are you doing it today?
Sarah Weaver 00:57
Yeah. I think the first is you have to be crystal clear on your criteria. So when I get DMS on my Instagram. They’re like, “I’m looking to buy”. And I’m like, “Great. Where?” and they’re like, “I don’t know. Montana. Someone said, Ohio is good. Maybe Michigan.” I don’t want to ignore that person. But I’m always like, “Come back to me when you have clear criteria.” And so that’s definitely what led me to be successful is I was really clear on what I wanted.
I wanted not only small multifamily, but I wanted value add. I had it down to if it was a duplex. I wanted this price point, if it was acquired this price point. How much renovation was I willing to do? Because some people say, “Oh. Yeah. I’m willing to do renovation. And then agents are sending them gut jobs. And they’re like, Well, no. I was thinking more like painting the cabinets, not tearing out the kitchen.
Chris Bounds 01:47
Yeah, important distinction there.
Sarah Weaver 01:50
Exactly. So really being clear on your criteria and then sharing that with investor friendly agents. And so that brings me to my next point, which is having a team. I mean, I wouldn’t buy somewhere where I didn’t have a go to plumber or a go to electrician. All of these people that are gonna make you successful, your team is so crucial.
Chris Bounds 02:13
So building a team is definitely a buzzword. especially. I absolutely agree with you. But for newer folks who have never bought a property. I get this all the time, “Hey, I’m just trying to build my team.” This that the other, usually they’re contacting me because I am an investor agent. But what does that mean? Do you need that plumber before you buy the property? Do you need that property manager before? What does that mean to you?
Sarah Weaver 02:47
Yeah. I think you need to have your financing in order. So you have to be pre-approved. So you have to have someone that will finance the property in that state. They can be local to that market or they can be someone like the lender that I use. He’s licensed in 30 plus states. But you need to have your financing in order. And then what I consider your investor friendly agent and that agent should have a stacked rolodex.
I really only like working with agents who own rental properties themselves because then when I last minute need a cleaner, they’re going to have someone. When I need someone that agent is truly the glue that holds everything together. And hopefully I’m buying enough deals from them that it they are getting their time is worthwhile. And so they’re happy to share some of their contacts. Unless that GC is working on their house and then they’re like, get in line Sarah.
Chris Bounds 03:39
Okay. So this is extra emphasis and pay our organization is invested agents but it was really because the agent that is an investor that’s actively investing and works predominantly with investors does bring, they bring a ton of value because they have that team. And so when folks are asking me like, “Hey, I need 60% deals. 30% deals.” I’m like, “Well, one I would buy those but this is what I can’t offer like you want contractors guide them.
If you want electricians guide them. If you want roofers guide them. If you want to know how to get foundation fixed and not paid triple or what everyone else is paying. I can absolutely help you there. Do you want to know what areas to avoid? And what areas that we really love? I can help you there. Realtor as an investors seems like that’s really what you dug in and you started there and kind of explored from there.
Sarah Weaver 04:38
Yeah, absolutely. And they’re I mean, they’re worth the wait in gold.
Chris Bounds 04:42
Truly are. I mean, they’re your market resource, but also almost like your investment advisor, at least in that area. You’ve got the you got the agent on the team. What next? Because you still have to buy the property. Well, I mean, You got to find the property.
Sarah Weaver 05:02
You just you just read a lot of offers. I have people messaging me like, “Oh, it’s been so hard.” And I’m like, “How many offers have you written?” They’re like, “Oh, three and it’s been terrible. I haven’t been able to get anything.” I’m like, “Call me when you get anything.” Yeah, exactly. Yeah, so just write a lot of offers. Not only is it good practice, but I mean, one will stick.
Chris Bounds 05:27
I think the management aspect is probably the biggest hurdle to get over. So you can find an agent, which that part isn’t that difficult. Of course, find the right agent. That may take a few different conversations and such. But being able to actively buy a property and then manage it.
Now, that means managing the project, if it needs a maker, whether that’s paint or gut job. And then, managing the fulfillment side flipping, that part’s probably not as difficult because you have the agent, but the property management. If you’re gonna hold it as a long term rental or Airbnb, which I think you’ve got experience on both of those sides.
Sarah Weaver 06:14
Yeah. Really, right now I have. Yeah. I always say do as I say, not as I do. I’m actually self managing all 11 units, which I hope if anyone has me on a podcast next August, I hope that I’m not saying that any longer. Because this is not scalable. But I like to be transparent that that’s what I’m doing. Because it is possible. And so I always say like, if I can do this, imagine how easy it would if you just got a property manager.
Everyone’s so scared of out of state investing. And I’m like, No, you should be scared of out of state managing. But out of state purchasing and hiring a property manager. That’s easy, anyone can do that. But I have two buyers going on right now. And I’m doing those remotely as well. And then I have an Airbnb. Airbnb my primary. And so it’s not technically out of state. But obviously I’m Airbnb in it while I’m traveling and away from the property. And so sometimes that is out of state.
Chris Bounds 07:19
I’ve toyed with the idea. Jamie’s been a hard reject on. I was like, hey, look, we can actually go on vacation for a month and Airbnb our house and like vacations paid for. I haven’t quite. Yeah, I think I got a long appeal for commencer on that.
Sarah Weaver 07:34
Yeah, I went into this property knowing that that was going to be the case. So in my airbnb, my valuables are not out and displayed.
Chris Bounds 07:44
Yeah. That’s a little different. Okay, so we’ve nailed down the agent. We’ve nailed down the property manager those been seems like the two pieces of the pie. Even though you self managed, but you still understand the property management aspect is important. Because you’re able to do that. But you’re also actively looking for that long term solution, that third party solution?
Sarah Weaver 08:09
Yes, absolutely. Yeah. I mean, frankly, if I found a great property manager in Des Moines plug plug, I would hire one. And with all that I had going on that task just kept getting pushed further down the to do list. And next thing I know, I’m like, Oh, I guess I’m self managing.
Chris Bounds 08:28
You’re able to do that and go from three units to 11 this year and start on the whole process 7000 miles away from the subject property. Truly amazing. I can only imagine now that you’re a little bit more local.
Sarah Weaver 08:45
Yeah, I am actually a little bit now.
Chris Bounds 08:48
Yeah. So it’ll be it’ll be very interesting to see how the next 12 months go. So I appreciate it. These things always go super fast. But Audra and I, we are in a previous conversation, enjoyed that and this one, too. I look forward to talking with you and kind of seeing that progression over the next few years.
Sarah Weaver 09:04
Yeah, thank you. I really appreciate you guys having me. I think what you’re doing is really cool. I think every agent should invest. And investors should work with agents who invest themselves as well.
Chris Bounds 09:15
Couldn’t agree more. Thanks Sarah.