5 REAL ESTATE INVESTING TIPS FOR OUT-OF-STATE INVESTORS
At this point, I believe most people know that investing in real estate is a great way to build generational wealth. However many may struggle with their aspirations of real estate investing due to the price point and values being so high. Now more than ever people are having to adapt to being remote. Learning how to do this can give you more flexibility and offer larger returns. In this post, you will learn 5 tips on how to invest in real estate from out of state or remote.
Define Your Niche
When you define your niche it will help you to learn your niche. Learning your niche will help you better evaluate deals and weed through any of the information sent to you by someone who has something to gain from your purchase. What type of houses are you looking for, what is the spec of those homes 2 bedrooms 3 bathrooms etc? Define your price point, do you want to spend 100k total, does the house need to have an ARV of 250k etc.Clearly defining your niche will make it easy on the other people in your network that you rely on for deals to bring you quality opportunities.
Have Funds Readily Available
Pre-approvals are an absolute must. In order to be successful in a quality market out of state, you need to be equipped to jump on deals. Don’t just work one angle on funds, if you have conventional financing lined up great, but see if your agent has other resources available. You never know when a global health crisis or any other extenuating circumstances may arise it is important you an investor-focused agent on your side that has a network who’s ready to step up.
Build Quality Network
This is probably the most nerve-wracking part of out of state investing. You don’t know anyone, it can seem almost impossible to be prepared for all that comes with investment real estate doing it from hours away. It is all about putting together a great team. No great team is built in a day, it will take time, patience, and sacrifice especially in the beginning.In the beginning, dealing with some of the industry-standard rates for example 8-10% in property management fees, that is a sacrifice you pay until you can offer volume. Most of the industry professionals price will be incentivized by volume and will give you price breaks based on being able to give them volume.
Market Research
If you want solid returns considering the financial risk you are taking it is important you chose a quality market. Look into the development of the market. What is the job growth like, how is crime and unemployment? It is recommended to look into income information along with school ratings. I will say depending upon your resources, your reason why you want to invest when there are factors like high unemployment rate that would deter many investors if you can develop a plan to address that circumstance you will set your self up to get paid. Remember as an investor the PROBLEM SOLVERS GET PAID.
Community Outreach
Determine a way to support and engage the community that the rental is in. This should be an absolute must however it is rarely spoken about. You must give back to the communities that you do business in, this is best done by supporting something meaningful to your tenant. Word about this gesture will get around and will very likely increase and reinforce a positive relationship between you and your tenants. In the end, the relationship you have with your tenant will influence how they will care for your property.
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