{"id":89343,"date":"2020-11-22T10:00:05","date_gmt":"2020-11-22T17:00:05","guid":{"rendered":"https:\/\/www.biggerpockets.com\/renewsblog\/?p=89343"},"modified":"2021-03-16T12:27:09","modified_gmt":"2021-03-16T18:27:09","slug":"invest-out-of-area","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/invest-out-of-area","title":{"rendered":"Forget Demographics\u2014Research THIS Before Investing in a New Market"},"content":{"rendered":"<p>I speak to around 10 investors a day who are looking to invest from out of state or out of the country. I speak to a ton of investors every single day, from all over the world. So, I want to share with all of you remote investors about how to successfully invest far from home.<\/p>\n<p>Every single time I speak to someone, all we&#8217;re discussing is stats, demographics, employment rate, vacancy statistics, school districts, etc. Don\u2019t get me wrong; this stuff is very, very important\u2014I understand that. But that is not the first thing that you need to look at when you are trying to invest out of state or out of the country.<\/p>\n<p>Guys, change your mindset. Put the stats and demographics aside. I\u2019m begging you.<\/p>\n<p><strong><em>Related:<\/em><\/strong><em> <a href=\"https:\/\/www.biggerpockets.com\/blog\/out-of-state-real-estate-investing-pros-cons\" target=\"_blank\" rel=\"noopener noreferrer\">Out-of-State Investing: The Good and the Bad<\/a><\/em><\/p>\n<p><iframe loading=\"lazy\" src=\"https:\/\/www.youtube.com\/embed\/h_WtCoSCbu4\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<h2>What You Should Actually Focus on When Choosing Where to Invest Remotely<\/h2>\n<p>I feel like the Red Cross most days because I talk to so many investors from all over the world who have been screwed by people\u2014not by the stats, not by the demographics, but by people. Over the last five years, I\u2019ve come to the conclusion that you have to focus first\u2014and solely\u2014on establishing trust and relationships with key people on the ground before you invest out of state or the country.<\/p>\n<p>Heck, even if you\u2019re looking to invest in your own backyard, you still need to have the right people to succeed. You need a good accountant, attorney, real estate agent, contractor, and property manager. That is what&#8217;s going to make you successful or not.<\/p>\n<p>I\u2019ve got a saying, and it goes like this: If you buy the best house, on the best street, in the best area, with the best capital growth projections, but your property management company is incompetent or they\u2019re cheaters and liars, they\u2019re going to steal your rent or they\u2019re going to lose your rent. So, it really doesn\u2019t matter how good the stats and demographics are. It comes down to the people.<br \/>\n<em><br \/>\n<strong>Related:<\/strong> <a href=\"https:\/\/www.biggerpockets.com\/blog\/dont-invest-real-estate-out-of-state\" target=\"_blank\" rel=\"noopener noreferrer\">The Top 3 Reasons You Should Never Invest in Real Estate Out of State<\/a><\/em><\/p>\n<h2>The Importance of Establishing Trust<\/h2>\n<p>So to everyone looking at investing from afar, out of state or out of the country, focus on the people first. Make sure that those people have your best interests at heart. Real estate is not a one-night stand. It\u2019s a marriage, meaning you have to like and respect each other.<\/p>\n<p>It\u2019s going to take five, 10, or maybe even 15 years for you to build a substantial portfolio and achieve financial freedom. To get to where you need to be. So, anyone who is looking at flogging you a property quickly is not someone you want a relationship with.<\/p>\n<p>Remember the concept of delayed gratification within relationships. Plant the seed now and reap the harvest later. And then, once you have established trust and relationships with great people, it&#8217;ll be time to look at the stats, the demographics, the cash flow, the price points, the school districts, the vacancy statistics, and all of those jibber-jabber numbers.<\/p>\n<p><a href=\"https:\/\/www.biggerpockets.com\/calc?utm_source=blog\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-117195\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2019\/10\/Signup_3.jpg\" alt=\"\" width=\"728\" height=\"90\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2019\/10\/Signup_3.jpg 728w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2019\/10\/Signup_3-300x37.jpg 300w\" sizes=\"auto, (max-width: 728px) 100vw, 728px\" \/><\/a><\/p>\n<p><em>What&#8217;s the first thing you look at when vetting markets?<\/em><\/p>\n<p><strong>Let us know with a comment below.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Demographics like vacancy rates aren&#8217;t everything. Sure, this stuff is important. But it&#8217;s not the first thing you need to figure out when vetting markets for real estate investments.<\/p>\n","protected":false},"author":1672,"featured_media":120201,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[4252],"tags":[],"class_list":["post-89343","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-deal-analysis"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/89343","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/1672"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=89343"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/89343\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/120201"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=89343"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=89343"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=89343"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}