Boots on the Ground

[Account Closed]

I just finished listening to the podcast with Michael Quarles about direct mail. In that conversation, he mentioned that when you are checking out property, nothing beats "boots on the ground." I think he also mentioned that having somebody do that for you (if you are an out-of-town investor) is wise.

My question is - does everyone else feel this way? If you were to have someone check out a property for you, what would be the things you would have them do? What things do you wish they would do?

As an appraiser, I know what my list is - but I want yours...I want to get inside your head and think like an investor.

[Dev Horn]

I agree with Michael.  Real estate is a local business, and there are many many stories of people getting burned when they tried to do it remotely.  Perhaps other BPers have done it remotely with great success - if so, bravo!  But I would warn most investors to avoid buying properties they can't SEE.

The problem is that pics and even videos can be carefully selected so they obscure big problems.  Thankfully, we now have Google maps and streetview which allow us to get a better and non-biased view of the area.

In addition to knowing what the surrounding area looks like, you really need to be able to (or have someone else) assess the 3 big area of concern that can kill a deal - roof, foundation, and HVAC systems.  The person looking at the place needs to have some skill at evaluating those areas.

Last, we determine ARV (after-repaired value) by looking at comps of recently sold houses nearby. This is where it gets really tricky because I know areas where there are new luxury houses 3 blocks over from older entry-level houses. You really need to know your area (or work with someone who does) to know whether your subject house compares to the comp at $60 per sq/ft or the other one at $120 sq/ft.