Purchasing first real estate out of town

[Adeiza Jatto]

Hey guys, my name is AJ and I’m a real estate investor in the Maryland market. I am currently using direct mail marketing to attract motivated sellers. It seems that my market may be a terrible market after seeing what most people had to say about it in the BP forums. I have not gotten any response from my direct mail. I’ve sent over 1,000 letters to Pre-foreclosure homeowners and absentee owners. Now I was looking to maybe start looking at other markets. Would it be wise to start investing in an out-of-state market on my first couple investments? Eager to read what insights you guys may have about this.

[Russell Brazil]

Fyi, it is illegal to used targeted marketing to people in preforeclosure in Maryland. I believe the penalties run $5,000 per marketing piece and up to 3 years in prison. So I would suggest going a different route.