Trust but Verify - distance investing strategy advice needed
Hi BP community!
I'm interested in investing in buy and hold in areas outside of my immediate driving distance. I've connected with wholesalers and turn-key companies to find deals, but now I'm not sure how to move forward with verifying everything that is presented electronically. I'm trying to draw on your experience as to what you have found to work best for actually VERIFYING information 1. PRIOR to deal such as: Neighborhood quality (rental desirability), repairs needed, repairs actually performed, ARV; & 2. AFTER purchase - repairs actually performed. Who can you trust? Who can you depend on for an objective opinion and assessment? Who would not be biased by personal interest in the deal going through?
Most Popular Reply
@Robert Borer I once owned property in Columbus, OH while living in Texas. The property management firm that I used was completely dishonest. My mailbox money went from $2,500/month to "owing" the management company every month. This was before technology was available to help me verify maintenance expenses. So...fast forward a decade+. I own a property management in Texas that mostly manages out of state clients. We leverage technology daily to help owners feel comfortable with their investment and most importantly my firm. Digital pictures prove work needs to be complete and that the work was completed. Also videos. Owners love seeing YouTube videos of their rehab project. The bonus to me is they share those videos with all their friends and I end up with new clients. You can also use 3rd parties to help. We often inspect properties, run comps, complete broker price opinions, complete maintenance for non-clients. It can be scary owning remote properties. But it can be more profitable if done right. Bonus tip - use Google reviews to find vendors.
- Kyle Mccaw
