Out of state - When are the right times to fly to see the property?

Question

I have a logistical question about investing in buy-and-hold out of state - When is/are the right time(s) to fly out to see a specific property I'm going to buy?

My thoughts are that I would have my family / trusted friends see prospective properties for me.  If one makes sense on paper and my family / friends on the ground have a good feel, then this is where I'm not sure what makes sense.

Would you fly out to see the property before putting an offer in, or would you wait until inspection, or both?  My concern with flying out before putting an offer in is that I feel like spending ~$400 on a flight would be quite a bit of money first of all, and second of all mentally commit me to buying the property. That's why I was thinking I'd just make sure my contact on the ground does a really thorough walk through of the property with a list of things I want them to look for.

How do other out of state investors handle this?

Sam B. · Answer

Account Closed

I would fly out before even making an offer to really understand the area, the neighborhoods of focus and most importantly, put a face to the name with your team and meet as many of them as you can.

If you already know the area and feel comfortable with your team, then I don't see a need to fly out.

I setup a team in a city and state I had never so much as flown through...and being a control freak, I felt very compelled to spend some time on the ground understanding the area that my hard earned dollars were going to go and the people that were going be partly responsible for ensuring I saw a return on those hard earned dollars.

Sam B. · Answer

Account Closed

Are you a professional property inspector?  Years and years of experience crawling through homes, knowing exactly what to look for?  You know inspections better than a local, qualified inspector, agent and trusted friends/family on the ground?

What I'm getting at is that you're going to add very little value reviewing the property yourself prior to your purchase.  I would argue, negative value, after you include cost of flight, food, rental car, hotel, time away from work, time away from family, time away from your REAL role in real estate which is finding the next deal.

ALL THAT SAID - I think there is huge value in spending time on the ground and building relationships with your team - going out for beers with your agent, your property managers, your project managers/GC/contractors, taking an interest in what they're doing, reviewing their projects, ensuring their goals and ethics are still aligned with yours.  But flying for a property inspection?  Nope.

Hattie Dizmond · Answer

I would suggest it depends on where you are investing. For instance, if you're trying to invest in DFW and won't pull the trigger on a property, until you have personally seen it...you're not going to buy a property.  There's no inventory. Things move too quickly for that.

We work with out of area investors. They don't see the properties they buy, except through our eyes. We view the properties. We take pictures and provide a narrated video tour.

Again, here in Dallas, the market wouldn't wait for you to fly in. If you want to travel, I would suggest you do it to spend some time touring the neighborhoods you are targeting, then leave it to your ground team to view the property. Remember, this is an investment, not a primary residence. You care whether it will be marketable for rental purposes and whether the numbers work. There's no reason you need to personally see the property before purchasing.

Crystal Smith · Answer

If you're going to purchase out of state you should spend your $400 developing relationships w/ professionals in the market you're considering, not flying in to see a property before you make an offer.  The property will be gone before you make a reservation.

Regarding using family & friends:  If they are full time professionals in the real estate business then use them.  If not then use the $400 to meet w/ & hire professionals.

Account Closed · Answer

Thanks for all the great responses everyone!

Account Closed · Answer

Thanks for responding Sam.  Then at what points in the purchase process, if any, would you fly in to see it?

Dmitri L. · Answer

When to fly out:

- Before you start looking for property, to get a feel for areas and neighborhoods. Your listings to get a feel for value. And most importantly NETWORK and assemble your strike team. You will not be buying anything this trip.

- If you must, fly out and see a property during the inspection/option period AFTER you have it under contract. Although it's not necessary, I can see how it would give you peace of mind. Make sure to count that cost in your ROI calculation.

- Regularly thereafter - besides being able to check on your propertie(s), it can also be a tax writeoff.

Cheers

-Dmitri

Richard Dunlop · Answer

Have you a familiarity with the market you are buying into?

Allison Karrels · Answer

I recently bought a home with Memphis Invest.  I flew out for the final home inspection with my property inspector because this was the first time I worked with them and I wanted to see first hand what the renovations looked like.

Dawn Anastasi · Answer

When you buy stock in a company, how often do you fly out to visit the company you're investing in?

Out of state - When are the right times to fly to see the property?

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