I recently viewed a property I was considering buying that was out of my area. I'm in DFW area and prices are so high here. Even in the C & D areas where house used to be bought for prices akin to those in Detroit and Memphis markets are now unheard of or I just don't have the right connections. So back to my viewing a potential property out of my area. I'm trying to get over my fear of buying/testing the waters out of my area or my state. I'm proud of myself for at least putting my toe in the water and driving to Wichita Falls (over 2 hour drive) to view a property I won't buy. I know it's probably been asked many times and many ways. But how do/did those of you who have properties out of your area or state get the confidence to try other markets? Do you ALWAYS travel to these places? In other words how do you SUCCESSFULLY spend money in unknown territory?
Hey @Val J. in to answer your question in one word: Research. Online that is.
This way you can save your time driving to places you won't buy anyway. It not only helps save time, money and the boring drive - even though I'd listen to tons of podcasts on the way ;-) - but it also focusses you on the very important phase of analysis and not getting emotionally attached when looking for an investement property. I never travel to a property unless I reach the due diligence phase and intend to close on a deal.
Also start reaching out to out of state realtors on Zillow.com (if SFR is your strategy) or brokers on Loopnet.com (if commercial multifamily is your goal) to establish and grow relationships with them. They know their markets, provide you with intel you need for your evaluations and do the lead gathering for you. These portals are alos a great source to gain knowledge about so many things needed to make educated descisions.
Once your relationships are better (time) with the realtors and brokers, they will start sharing deals with you that actually have a chance of turning into a profitable acquisition for you. Why? Because 99% of the properties we see online are currently overpriced and the crumbs left over from what the big guys have snatched away before they were thrown onto the market. As Brandon always says: "Make a ridicoulous offer." Research, study, evaluate deals with the online tools provided here on BP.
All this activity - that's what I do with my nationwide multifamily investing all day - leads up to gaining increased knowlwdge, skills and confidence in your numbers and thus to make an offer and hopefully, if all things pan out, close on a deal.
@Val J. You can read the recently released BP book by @David Greene that explains the process of how to invest in long distance properties. I bought it when it came out, it is an excellent book that helps you get over the "need to see it in person" mentality and teaches you how to do your research from long distance. @Ken Breeze is correct in doing all that research online or with some phone calls to save you time more than anything else in traveling to view properties you won't buy. You can never get back lost time so do all the research you can, use the BP calculators, etc to first decide if you even want to attempt to buy it, and then if the numbers work, make an offer. Personally, if it is within a 2 hour drive, I probably would go see it too, but only after first doing the research and looking at the area on google maps to see if I would even be interested.
thanks for asking the question. I often wonder the same things so because you were bold enough to ask I can learn too. The beauty of this site.
@Ken Breeze Thanks so much this is sound advice. I've been so very afraid of venturing outside of my local market. I'm still intrepid but with advice, tips and suggestions from the BP family I now have smarter not harder ways of getting steps closer to fulfilling my goal
@Don Spafford Thanks for the book tip. I'll be following up on all the advice I received.
I currently buy in Houston, and you really have to have the best GC and Property manager, and everything will go smooth. If you don't it can be very hard. I would get as many recommendations as possible before choosing.
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