Long Distance Real Estate Investing: Finding Good Local Resources

[Alfredo Goytia]

It seems that the topic on long distance real estate investing is really hot right now (thanks @David Greene!). It almost seems essential in order to get started, unless you want to house hack, if you live in a high priced area (California, Washington D.C., New York, etc). I think the most crucial thing about long distance real estate investing is having a pair of very reliable boots on the ground. Having a great set of eyes and ears that relays project progress, sends videos and pictures, and most of all can be your proxy presence. What I mean by proxy presence is having that person that can do the activities you'd need to be there in person for (for example: show homes, meet contractors, inspect repair work, help in insurance claims situations, etc).

This proxy presence that seems most crucial, also seems incredibly impossible to find! Not only do they need to have a body in the location you are investing, but they must also be competent. Even more so than competent, you hope they can be an extension of you so this can be as passive as possible. Of course you always need to manage them and never fully go hands, while at the same time still developing your systems and processes to help mitigate any risks that arise with this type of relationship. 

This proxy presence should also be very familiar with the real estate investing climate in this area. They should be able to make recommendations on where to invest, where not to, where the path of growth is heading, what upgrades are appropriate for the area, etc. They should also be your "ears to the ground". They should be connected and be a great source of deal finding.

With all of these requirements it almost seems like you are looking for a unicorn! There may be alternate strategies. For example, these skills can be split up into multiple people. Your deals you could get from local wholesalers in that area. The repair work could be handled by partnering with a great general contractor. And the rest could be handled by a licensed agent and/or property management company.

Although, what if I was to tell you these proxy presence unicorns exists? And that they make long distance real estate investing a dream. What if I was to tell you that all you'd have to do is put somework into finding them?

If you were convinced they existed how would you go about finding this proxy presence unicorns?