Buying in another State

[Rafael Chávez]

Hello! I am new investing in real estate and from the education I have been gathering here in BP, books, and videos, one recommendation is to check population growth, economy, employment rate, etc… in order to invest in the right market. My question is how is the buying process to invest in another city or state? Should I be traveling constantly? Can a property management help in the buying process? Is it possible to advance in some tasks from the distance during the buying process? I would really appreciate the help. Thank you

[Alex Mao]

@Rafael Chávez

While physically seeing the area and then property (ies) you're investing in is recommended, it isn't absolutely necessary if you have a good and trustworthy team, and are comfortable with all the research you've done. Once you've identified the area you're looking to invest in make sure to do your due diligence and obtain references, and do research on, the team members who will be critical in sourcing, executing, and managing the deals with and for you.

By the end of this month I would have closed on my 2nd and 3rd out of state assets this year, all site unseen. While I would've preferred to visit in person while in contract, my work schedule didn't permit, and I'm comfortable with my local team and the tons of research performed on market, zip code, and neighborhood. Of course I leverage the massive wealth of knowledge from those wiser than I here on BP.

Be comfortable with your numbers that you run for varying scenarios, worst and current case as well as stabilized forecasts (i.e., after any improvements are made).

Also remember that analysis paralysis and overthinking is a real thing that holds many back from getting in the game. Best of luck to you!