How are you closing quickly as an OOS investor?

[Justin Young]

Aloha BP!

In the process of overcoming my fear as an out of state investor, I'm determined to take action and not allow my fear to prevent me from pursuing real estate. The risk with doing nothing is far greater than taking action assuming I have calculated the risks and ensure there are mitigated plans in place should something unforeseen happen. A big problem I'm finding though is being able to perform due diligence on properties that come onto my radar in a short amount of time. Indy is such a fast pace market that I'm unable to get another set of eyes on the property in time before another investor snags it from underneath me. Sure, I could lock it under contract, sight unseen, and perform my DD then but I'd hate to be the guy that locks up everything but only closes on a small percentage. Most wholesalers are asking for a 14 day closing period. Is that really enough time to get a contractor or home inspector to review plus create the paperwork that helps you make your final decision?

How are other OOS investors closing on properties quickly? Thanks in advance.

[Andrew Johnson]

@Justin Young I don't close on anything in 14 days and I haven't had much luck with wholesalers.  Mostly because the deals don't look good to me.  Well, they do on paper but when I dig into *their* numbers something is always off.  Who knows, I'm sure there are good deals out there but that's really here nor there when it comes to getting things under contract when you're out-of-state.  

My method relies on my property manager who also functions as my agent. Some pops up on the ol' MLS and she can tell me about the area in 30 seconds, drive by the property in a day, and usually get inside in under 3 days. I have to admit, for the most part this just screens out a lot of "deals". She knows what I like and can tell me pretty quickly if it's for me or if it isn't. She has a contractor that she works with that she can drag along if it looks like (from the outside) that it's going to need some work. At that point I can either put in an offer or book a plane ticket.

I will say that I've been working with her for years so she knows how I like my properties kept up and what will likely fit into my sweet spot.  And I'll also point out that 99% of the time (a little hyperbolic) it turns out there's a reason not to move forward with the deal.  

All of that aside, if you haven't picked a market, don't have someone you trust, are vetting deals on paper from wholesalers, etc. you're going to have a tough time.  I can't tell you how many times I've had a deal that looked on paper and in pictures and driving to the property (and seeing the neighborhood) I decide it's not the right deal for me before I even get out of the car.