To Invest in a Real Estate Market and Succeed Do This!
Invest Successfully From Afar
I remember many years ago, when I first heard about people buying real estate out of town, state, or even country, I was amazed. I thought, isn’t that risky? You are so far away from your investment! But I noticed that a lot of people were doing it. Purchasing in a real estate market outside of your neighborhood certainly raises some challenges that buying locally does not. So why do people invest in areas where they don’t physically live?
Perhaps the biggest advantage is that you can often find better deals elsewhere than in your own backyard. All real estate markets are not the same. Some are in a downturn, others are in an upturn. If you want to mamimize your return on investment, you need to buy in a real estate market where the conditions are right for what you want to do. Timing and location are very important.
Investing in the U.S. right now is still a lucrative venture. Even though the economy is “coming back” in many regions of the country, deals can be found that can result in great returns on your investments.
Here are 4 key things you need to do to be successful in when investing
in a real estate market away from where you live.
- Learn about a real estate market in which you are interested in investing. Understand its economy as well as its economic and population growth. Is it diversified? Buying a property in a one industry town is much riskier than one in a more diversified area.
- Your exit strategy should guide you in your decision of where to invest. Some markets are better for doing single family flips, others are better for condo conversions, and others for long term buy and hold. Just picking a property in a city you like, should not your only criteria for making your decision of where to invest.
- You need to understand the laws and regulations of the real estate market area. Every jurisdiction is different, so do your research. The rates and insurance costs will also vary by location so it’s important to use the right numbers when you do your property analysis calculations so you don’t overpay for the property.
- You need a solid power team of real estate professionals on the ground that can get things done for you when you are not there. Building trustworthy relationships with brokers, property managers, contractors, etc. is pivotal, especially if you will not be there to oversee everything. They will be your eyes and ears on the ground. Property management in particular will make or break the success of your property so never underestimate having the right people on the ground managing the day to day operations of your investment. The success of your investment depends on it! Learn how to invest in real estate using this strategy can also provide you with some very good tax incentives.
Bottom line; don’t be fearful of getting involved in a real estate market outside of where you live. You could be missing out on some great opportunities that could bring you closer to financial freedom.
If you are interested in finding out more about the great world of multi-family real estate, drop us a line! There’s no better time than now to start building wealth.
Remember, real estate doesn’t have to be complicated.
With Simple Acquisitions it’s smart and simple!