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Updated almost 4 years ago, 12/30/2020
Long distance investing: Getting to know an area?
I’m planning on investing long distance (~3 hours away). When I visit the market for a long weekend what’s the best way to go about discovering the market? Any suggestions on a strategy/plan besides just driving around, talking to an agent and asking property managers where they wouldn’t manage properties? Any tips would be greatly appreciated!
I would go on Reddit and see if the area has an active subreddit. Then read through their area/housing recommendations. They'll know what's going on.
Look up where new development is happening (and where it's not). School ratings are also an important indicator. Shoot, take some time to actually walk rentals as a potential applicant. Secret shopping is just a reality of how the market works.
Corey, although not far from your home. Try reading the daily news paper on line. You will get a better idea of what is taking place the local area. "The vibe" Everything from crime rates, to a new employer moving in. In addition to local building, growth, traffic issues and overall transportation. This is a simple, daily thing to do. That is all too often over looked. And can give you a wealth of information. best of luck!
@Taylor L. Sounds great. I appreciate the insight and would never have thought of reddit. Going to be blocking out some time every night to do this. I'm actually planning on investing in the Norfolk, VA area. So you may be familiar with the area. If I'm not liking what I see with Norfolk, Richmond was another place I thought might be good.
@Martin Carstens I like this. Definitely a good way to slowly build information over time. Who says people don’t read the newspaper anymore? I’ll block some time out for this as well each day. Have a goal for my first property early 2021 so I have some reading to do!
Originally posted by @Corey Gilroy:
@Taylor L. Sounds great. I appreciate the insight and would never have thought of reddit. Going to be blocking out some time every night to do this. I'm actually planning on investing in the Norfolk, VA area. So you may be familiar with the area. If I'm not liking what I see with Norfolk, Richmond was another place I thought might be good.
Totally different markets, but both are decent. I'd put Richmond a notch above Norfolk for investment purposes. We have more diverse employment & economy and from what I've seen we have better options for property management. We also seem to have more A & B class areas. Our prices are higher, though, of course.
@Taylor L. Makes sense. I'm just starting research on Norfolk but I really liked the strong military presence as well as the price to rent numbers. The plan is to BRRRR. I can look into both to see which place I'd like to focus on. Do you have any agents/property managers you'd suggest in the Richmond area?
@Corey Gilroy I agree that you should do your homework on a market before travelling there. Real estate agents and property managers are going to be a great resource, as you mentioned, on the market as they are there locally and should be in the know of the good, bad, and ugly of the market.
You can also try asking around in these types of forums or friends/family who may live or have lived in the market you are interested in.
Depending on your buying criteria, pay attention to the population, income, and job growth of an area. These are important indicators of the current and future economic health of a market. Also look for diverse industries and markets with more than one major employer.
Good luck!
@AJ H. Great, I think the plan is to look into those factors first. If it checks off that box I’ll explore the forums to see what zip codes people suggest to look deeper into. If that also looks good and I like what I see then reach out to property managers and agents to see who the renters in that area would be and make sure trends aren’t moving away from that area. Thanks!
@Corey Gilroy Hey Corey! I see this as a few stages.
BEFORE GOING:
So before going, I would use the internet and what's available to you right now to find out as much about the area.
Look up the crime infested areas using Trulia, look up the school ratings, look at city level stats like unemployment rate, population growth, property taxes. What are insurance rates? What is the price to rent ratio of the town.
ONCE YOU ARE THERE:
Once you have all of those things and you are actually there. Your goal is to learn as much as possible about the area. When getting food while there, try and speak to the people in the stores, telling them you are purchasing in the area and you are new, if they have any recommendations for you. Drive to those areas that are more crime infested. Go see at least a few properties with your real estate agent (or maybe try out more than one). This will give you a more behind the scenes approach to what is going on there.
AFTER SEEING IT:
Its decision making time. Come home and go over everything. Is this still a good place to invest after all the information you gathered? Who do you want to work with?
#3 Managing Your Property Contributor
I would start by looking at areas that you already know. For example, you have family in the area, you used to live there or you went on holidays there.
@Corey Gilroy, if/when you decide to make a trip down to HR, let me know. I normally drive all our properties once/week. Happy to show you some areas we avoid, and some areas we focus on.
@Antonio Cucciniello great breakdown of the process. Definitely have some work to do. Not easy but I think it’s worth putting in the effort for the rewards RE investing can offer. I’ll make sure to follow these steps. I like the idea of talking to people while down there. Adding that to my journal
@Sean Rooks sounds great Sean, I’d appreciate and like that. Currently thinking of going down MLK Jr. weekend. So if you’re free then I’d love to connect. Also, side note: love your bio. Living the dream!
@Corey Gilroy sure thing, feel free to reach out if you have any questions.
@Antonio Cucciniello thanks, will do! Have a pretty good start point from feedback on this post. 👍
Originally posted by @Corey Gilroy:
@Taylor L. Makes sense. I'm just starting research on Norfolk but I really liked the strong military presence as well as the price to rent numbers. The plan is to BRRRR. I can look into both to see which place I'd like to focus on. Do you have any agents/property managers you'd suggest in the Richmond area?
PM - @Stephen Glover
Agent - not really. Recommend you get to know active wholesalers, that seems to be where the deals are coming from.
@Corey Gilroy I keep tabs on gang activity by monitoring shootings and gun shot wounds on the police scanners. You won't see these show on crime stata because the criminals are almost never arrested. Look for the FB group called Norfolk Police Scanner. (All of the cities in our marker have a scanner group.) Generally where there are shootings there are gang members hanging out.
- Patti Robertson
- 7574722547
@Taylor L. Great. Thanks for the intro. I’ll familiarize myself for after the holidays for a week before reaching out. Want to have some informed conversation. Also makes sense with wholesalers. Have to get into those off market deals
@Patti Robertson very good tip. Thanks Patti!
Corey, When I'm looking to visit a new area I always build relationships with Property management and brokers BEFORE arriving and in that order. I will then set up appointments with them to walk a few properties they are managing. With brokers I want to walk as many properties as I possible can. There is no better way to learn a market then hands on.
Then I'm looking to build relationships with lenders and contractors. I would meet with three lenders and ask if you could show up on a jobsite of the contractor. No better thing then to see the quality of work under the finished product and to see him in his environment. Ask EVERYONE for referrals. The broker for lenders and PM's, The PM's for contractors and brokers, The contractors for brokers and PM's you get the idea.
Don't sell short just driving. Look at the quality of the area. Are there mopes hanging out on corners, are there mattresses in the street? What type of store fronts are there? Are the streets and sidewalks maintained? Are the curbs crumbling? Is there graffitti on the bldgs? Are there Iron security bars over the first floor windows? Barb wire on the fencing of residential properties?
Get out and walk around. Talk to everyone you can. The mailman is the best choice here. He has deep knowledge of the area and knows where properties are that aren't on any map. UPS, Fed-Ex, PD and FD. Stop and grab a coffee in the morning and a hero for lunch. Talk to the sandwich shop owner and random patrons. People love to talk. When walking around see if you can find the mayor. That person that waves to everyone and just sits and watches everything going on.
This will get you moving in the correct direction. If I can help in any other way please feel free to reach out.
P.S Make sure you study flood maps. Flood insurance can creep up on you and BAM once a deal is now not a deal.