My partner and I are planning on buying an investment property in Amarillo, TX within the next couple of months. We have enough saved to buy a property outright. We live in NYC but my mother lives in Amarillo and has agreed to manage the property.
We're planning on going there to choose the property but since closing takes a little time, I was wondering how much of the process of buying a property can be done remotely?
Has anyone done this and did you run into any complications?
What should I be thinking about when buying out of state?
Jonathan I Lopez
I've bought 3 properties in Florida remotely. As long as you have someone on the ground who can look at it and manage it, you're probably good to go. It has worked well for me. My son manages my houses. He is VERY good at it and a great partner. And he can do maintenance.
what are you looking for?
Have you found the properties?
just use normal buying protocol.. find house,,, if you like make offer,,, once accepted have it inspected by 3rd party company... ( have your mom attend the inspection) if it all checks out and your paying cash.. you can do everything with scan and e mail and wire closing funds... some fed owned properties will require a few docs notarized which is a hassle but them just have title company send you preaddressed and prepaid fex label... pretty easy these days... buying remotely is no problem when your paying cash.
some of my closing attornies are now even using docusign on every thing except docs that are recorded.
Why not finance and leverage your money?
We closed on a house when my husband was at sea working on a cruise ship! The documents were sent to the port office via FedEx and arrangements were made for a notary to oversee the signing. When the ship came to port, my husband went to the port office, got the documents, took them to the notary, signed them, sent them back by FedEx, and re-embarked onto the ship. Talk it over with your team. The realtor, title company escrow agent, and/or real estate attorney, should be able to assist you with the process.
Having "boots on the ground" is extremely important. Does your mother have the right attitude and aptitude for managing residential rental property? Does she have the experience, skills, and support network to be successful? If she is new to this, she will need to learn the trade and get her team in place.
Thank you everyone for your great feedback.
I feel much more comfortable and knowledgable going into this deal!
Amarillo building safety is overly nosey and hard to work with. Property taxes are outrageous, and I'd go out on a limb and say your mom doesn't really knew what she's getting into as far as property management.
Maintance is going to be a killer, what are your plans for make ready and minor Maintance issues? If you call a plumber for every little issue, it adds up quick.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
You must be a BiggerPockets member to post on the forums
Join the world's largest, most open Real Estate Investing Community online, 100% free forever!