My biggest problem with out of area house looking has been outdated google street views plus good property photos that aren't a representation. A virtual tour doesn't tell me if the floor is sloped or squishy in a spot, or if the house smells and I'll likely have to seal everything, etc. It also won't tell me if an area is declining for a particular reason or set to explode. I just responded to a post from a fella that is looking to invest from cross country, near me. I know for a fact that some people are taking advantage (maybe it's too strong of a word) of out-of-state investors, so the local representative would have to very trustworthy and not someone that would profit solely from my buy-in; like an hourly wage versus commission or bonus. There are good people in the world so not wanting to sound too cynical. But, there's also funny stuff going on sometimes.
Alpesh,
All good points . . . I was thinking more along the lines of picking up a property in a random city where I don't have 'people', because I've sure been tempted before. I also found a good investor broker once who sort of required that I actually viewed a property before she would put in an offer. I just paid for an inspection and had to back out because the seller was hiding stuff, and I was thinking how that could really add up so I'm really trying to eyeball things a little better before moving forward.
But, I buy in a price point right now that includes some real rough stuff, and I'd probably be more comfortable in different price ranges where homes are better maintained. I know people offer sight unseen and it works well for them.
Glad you have a system in place that works for you. Cool thing about real estate is that you can make it your own.
Back to OP, I've seen some video tours and I really like that. Sometimes they walk too fast and they aren't common enough. I didn't want to do a video tour on my own listings (is that even a thing?) because I didn't want a thief to get a lay-out. But, I like it better than photos only. A guy in the REIA was doing something similar for out of state investors and it seemed to be helping. He knew what to mention and he was a good guy - I'd probably trust him from afar. I think he was wholesaling but I can't recall for sure.
I wouldn't buy it sight unseen...but I never see it before I make my offers
Online tools and apps are great ways to screen properties and to learn the area but nothing fully replaces going there. I always visit before submitting an offer. It’s a big investment.
Why? Wasted time. Make the offer, inspect properties after offer is accepted. Buy after inspection...if the inspection passes your approval.
offering site unseen is easy except for retail-minded agent resistance, having a trusted person verify repairs needed during due diligence factored into your offer, is not easy, would it be your agent who does that? getting any licensed inspector to inspect for fee is easy, closing is sort of easy except the going to u.s. consulate for notary is really sort of pain actually, getting any rehab done small, light medium post closing is not easy, having any project manager manage any kind of rehab is not easy, weather using conv, loan, using hard money even harder, more sweating bullets..all doable....trust, relationship key, vulnerability can be minimized but unavoidable.
matt, thailand
@Matt Berklacy Thank you Matt.
Verifying repairs would be something to consider, especially to avoid being taken advantage off by property management firms. Can you explain more on the US consulate?
Where I see value is the supply of labour out there that can carry out the management tasks without the need for significant input from the investor. Think of them as an employee in the sense that they would need to be carefully vetted, and would only receive payment on rent collected and not rent due for management of the property. This provides an incentive for them to minimise costs and operate efficiently. In the meantime you as an investor are reviewing where you want your next project to be, and setting up the support and network you need in that particular area.
Value proposition of this platform:
- Submitting offers at your convenience and not at the leisure of an Agent
- Outsourcing property management to carefully vetted Property Managers
- Open your money to the global market vs. your local market
- Ability to market your property as a seller to international buyers (when you want to exit)
Adam
One thing I haven't seen mentioned is the reluctance of the seller to even look at blind offers.
I just put 2 properties on the market and I put into the ad that I don't accept blind offers. We only showed the properties with appointment and with prior proof of funds.
Both got under contract within a few days. These were both properties for investors, not retail buyers.
I got one blind offer and didn't take it seriously and didn't bother countering or responding in any way.
I think David Greene wrote an entire book on this very subject 😉. After reading it, buying OOS is not too different than in your backyard. Have an A+ team in place and do your due diligence. Good luck!
Well, this is where having someone local you trust comes into play. Most of my investor clients are out of state or international and they have never seen the properties they buy.
I take the responsibility of being their eyes on the ground very seriously and will not let them buy a property that I don't feel good about. I've blown up several deals after something came up in the inspection and the seller wouldn't negotiate a lower price. And this has cost me thousands of dollars in commissions :(.
@Adam Butt Definitely not! But that's just me.
@Adam Butt Ironically, I think there are instances in which seeing an investment property in person could actually cloud one's judgement.
Yes, I would buy a property sight unseen and many people do. Not to go off-topic here, but many people fall in love on the internet before actually meeting the person in real life and stay married for years.
With the advent of technology, we are able to (and should) leverage to technology to its full potential as investors.
Time will always be a vital asset in which we do not want to waste on non-value adding activities.
Hope this helps, Adam. Thanks! - Ola