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Updated about 6 years ago,
Why out of state investors fail?
I receive lots of messages and am reached out by quite a few of out of state investors. I'm sure it is no surprise or secret that Texas is a very hot and desirable real estate market. I always do my best to provide value and guide the potential out of state investor to the best path possible for their goals. I always end the phone call or conversation saying that I 200% believe they should take the time and money to fly out here and see the neighborhoods and city for themselves. Many people see this as an "expense" or "waste". Google street view and "investor agents" can show and tell me everything I need to know. Yes those things can help you get a better idea, but they are only part of the picture. Google street view is a few years behind and A LOT can happen in 2-3 years in a neighborhood. I have never had anyone take up my offer, I always get "that's too expensive", "what happens if I don't like it and waste my time and money?", "I don't have time for that." My reply is always IF YOU ARE SERIOUS YOU WILL DO IT! You CAN'T afford NOT TO!!!! It is not a waste of money, it WILL SAVE YOU THOUSANDS by helping you to avoid a bad deal!
This past weekend for the first time ever, I had one of those potential out of state investors reach out. She said her and her husband were flying out and wanted me to drive with them around the city and show them the neighborhoods and my opinion on them. Needless to say I was in shock, and instantly took them that much more seriously. The knowledge they gained far outweighed the cost of the flight and hotel. In all honesty in the 5 hours they spent with me driving around and looking at comps, they learned more about investing here in San Antonio than probably 50% of the agents who have lived here their whole life.
Taking the time to fly out is not only for yourself seeing things, but should also be a time to meet with agents, wholesalers and other investors in that market. Putting a face to the name will instantly increase your credibility to them. You are seen as a serious person who is putting their money where their mouth is, and really takes their out of state investing future seriously. I'm sure agents, brokers and investors get the same thing from people looking to invest in the market and are "newbies" or just are ignorant to the market. There is something about meeting someone in person, shaking their hand, and talking in person that intensifies, and solidifies that relationship. This business relies heavily on relationships which is why I think this is such a crucial action to do if you are looking to invest in a market.
Long story short is I whole heartedly believe if you are looking to invest out of state you need to take the time to go out there for yourself and see the city/market in person. Real estate is so much different in person than it is online. You need to have some idea of how things are and what is going on in the city. I posted this because I know some people are in a market that isn't very investment friendly, and are looking other places to put their money. Please do your research guys and take the time to go there and see the market for yourself! I wish ya'll the best of luck and really hope that this encouraged some of you guys to make that investment. Please take this step of action in your out of state investing journey and I promise it will be worth it!