Unlimited opportunity to find out-of-state market

[Lou LaMedica]

Just finished the inspirational podcast 301 about out-of-state investing. What @Alexander Felice said about having an unlimited opportunity to find the right market really hit home.

While initially, this strategy seemed so risky because of the distance and not being able to check in on our investments, I believe that with a few deals behind me, I can leverage the skills I have built building my catering business into building a great support team. I reside in a very expensive market as well.

My question to you is if could start your real estate journey again in any area, where would you be focusing and why?

[James Wise]

Originally posted by @Lou LaMedica:

Just finished the inspirational podcast 301 about out-of-state investing. What @Alexander Felice said about having an unlimited opportunity to find the right market really hit home.

While initially, this strategy seemed so risky because of the distance and not being able to check in on our investments, I believe that with a few deals behind me, I can leverage the skills I have built building my catering business into building a great support team. I reside in a very expensive market as well.

My question to you is if could start your real estate journey again in any area, where would you be focusing and why?

 With some very basic due diligence it's not very risky nor does it even take a lot of skill to invest out of state. My advice to those looking to invest out of state for the 1st time is as follows.

• Don't buy in the roughest neighborhood in the urban core. Pick a solid B-Class suburban area. Perhaps a nice 1950's built bungalow.
• Always hire a 3rd party property inspector to give you an unbiased feel for the home. The reports are 40-90 pages long and go through the entire house in great detail.
• Get an appraisal. If your using financing the bank requires this. This is good. The bank isn't going to let you blow their money. They have more skin in the game then you do.
• Make sure you get clear title. If using a lender this is a non issue. They will make you do this. It's those maniacs that buy homes cash via quit claim deed off of craigslist that really get screwed.
• Make sure your property manager is a licensed real estate brokerage.
• Understand you can not eliminate all risk, only mitigate it. If you are risk adverse real estate, (especially out of state) is not for you.