Finding Your Team for Long-Distance Investing

Real Estate investing can be a powerful tool for building net worth and wealth over a longer period of time but, many markets across the United States are difficult to invest in successfully. Whether it's from rents being too low or the median property price being too high for the property to cash flow; in some places investing is too difficult for the average person. When this is the case, many real estate investors take advantage of modern technological advances and look to other markets that produce better profits or provide a lower entry price with cheaper properties.

In order to make this long-distance investing work, you need to find individuals you trust to maintain and manage all the day-to-day work with your property. Many property management companies are equipped with a number of team members that will cover anything your property might need. But it is difficult enough to find someone who will fulfill your expectations when looking in your own market, so how in the world does one find the right group when they aren't familiar with the area?

So What Do I Do?

When looking into a new market one of the first things that should be done is putting together a shortlist of property management teams that can help you learn about the area and manage your properties once your feel you have found the correct investment for your goals. A shortlist can be made by 1) simply googling the market you are interested in and "property managers." This usually will provide a good amount of options that could possibly make your list. 2) If you are more in tune with your local investing community, is to ask around to see if any other investors in your area operate in the market you are looking into. Many areas often have meet-ups with all types of real estate investors and they can be a very valuable resource for your journey into a new market. 3) Lastly, there are several online forums, like BiggerPockets where you could receive referrals on some companies to look into from those who have experience in the area.

After your list has been created you will want to reach out to each team just to chat about the services they provide and the areas they are most familiar working in. This will help cut down your list significantly because often it will show you that they don't provide something that you would need or their personality just doesn't seem to match. When moving into a new market it is generally a good rule to reach out to them in a way that requires they get in touch with you to follow up. This will give a good idea of how quickly they respond to customers and it will sift out the ones that don't care enough. If they don't care when first starting with them than it's a pretty safe bet they won't care as much as the other later on too.

Personal Touch v. Resources

Another important factor that should be taken into account when looking for a property management group is the size of the company compared to your investment goals. Some companies are run by single individuals that are absolute rockstars in a specific city or neighborhood. They might care more about your investments because you take a bigger percentage of the business. That being said they might not have the manpower to manage a large portfolio if that is your end goal. Often larger companies provide the manpower needed for a larger project but, they might not treat you with such a personal touch. Be sure to keep your investment goals in mind as well when chatting with each member of your property manager list.

The property manager will be the most important member of your team in the new market you are looking into. They will have strong relationships with other necessary parts including lenders, contractors, and real estate agents. (usually even in-house) The decision on which property management company to go with is crucial, so take your time and make sure you are comfortable with your pick. And as always, Happy RE Investing!