Out of State Investor Due Diligence & The Indianapolis Market

[Zach Hoereth]

Over the last few weeks I have noticed a number of out of state investors reaching out for assistance in conducting due diligence on properties that are either close to being under contract, or already in contract. Whether it be an off market wholesale deal or a turnkey property, out of state investors should have a well rounded perspective as to what they are getting themselves into. 

While I would advise visiting your target market prior to making a purchase, I believe it can be advantageous for an investor to find someone that is either local to the market, or who has bought property there before. If investors are able to have connections as such it allows them the opportunity to verify the validity of contractors, wholesalers, realtors, property managers, etc in the market.   

Multiple property managers within my network have expressed concern around eager out of state investors pulling the trigger on properties far above market value  to later realize that they had overpaid. Consequently, investors become unhappy when the property does not perform. Keep in mind that realtors, wholesalers, and turn-key providers are typically not the individuals involved with the asset 2, 4, or even 10 years down the road. 

This is why it is crucial to align with a team that has your best interest in mind (longevity of the asset & relationship) and can assist you in making decisions from hundreds or even thousands of miles away. Trust but verify! 

Cheers,

Zach