The best real estate investors are able to capitalize on a good opportunity regardless of where it is. This could be as close as the town they live in or as far away as the other side of the country. Ignoring properties that you can’t drive to, out of fear that you may not know what is going on at all times, is nothing other than natural trepidation. However, there is a way around this feeling. Trust the team you assembled and let them do their job. There is a little bit of blind faith that is required, but if you can get past this and align yourself with the right people, there is no reason not to look at a good property regardless of where it is.
If you buy a property that you can drive to, you should be able to handle any issues that come your way. With out of state or out of area properties, you may not be awarded the same luxury. Under such a scenario, you need to assemble the best team possible and build a relationship with them before you get started. If you have been looking out of state for some time, reach out to everyone that you want to work with before you get started. You need to surround yourself with the right people before you initiate any transactions. Realtors, property managers, contractors and attorneys should all be contacted and in place before any offer is made. These are the people that will be doing the brunt of the work on the deal and the property for you. If you wait until you are ready to make an offer or after it is accepted, you will be at the mercy of whoever you talk to first. Subsequently, your decisions may not reflect the best of judgement.
Once you have everyone in place, you should plan to meet with them in person before you get started. This may be easier said than done, but if you are willing to make an investment on a property you should spend the time and money to make sure your team can run efficiently. Most issues with out of state investing deal with the owner not knowing what is going on with the property. If you spend the time and meet with everyone on your team and spell out specifically what you want done, there should be no confusion. If you are constantly asking them for updates, they will start to grow frustrated and annoyed with you over time. Instead, have set days every week where they can send you an update and let you know what is going.
It may be several weeks or months after you reach out to your team before you get an offer accepted. It is important that you stay in contact with them in this time. A quick email or phone call just to let them know you are still in the picture will go a long way. To ensure that you are getting what you want done you may need to give up a bigger piece of the pie and make a little less. In the big picture this makes more sense than trying to deal with issues on a property that is 200 miles away.
Once you have your team in place and a system that works, investing out of area is as easy as investing 30 miles away. Take the time to work with the best people and keep in constant communication. There are real estate opportunities all over if you work with the right people.
