Investor · Irvine, CA · Member since 2020 · 3 posts · 0 votes
I'm a beginner investor, looking to invest out-of-state. Initially, I was thinking of looking for properties that are rent ready, esp. as a new investor to get my feet wet and help me get started faster. However, I've been thinking about "distressed" properties and the equity you'd build quickly by making improvements to the property. What is your investment strategy and what would you recommend for a beginner? Do you think it's still a smart strategy to look for rent ready properties? Do you only buy properties below market value to be able to build that equity?
Real Estate Broker · Denver, CO · Member since 2017 · 51 posts · 29 votes
6y
@Tiffany Wing Investing out-of-state, you will want to make sure that you have trusted connections and a good feel for construction costs / process in the area before purchasing a below market value project. I have heard far too many stories of investors who thought numbers looked great in an out-of-state deal and had no idea what they were getting themselves into. Contractor relations can be hard enough to maintain and control locally. That being said, there is a reason why people say that you make or lose your money at the start, on the purchase. There is maybe no better way to safeguard your investment than building equity on the front end by buying a great deal and taking care of the project that nobody else wanted to address.. Once again, just network hard to make sure that you have those connections when you need them!