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Updated almost 10 years ago on . Most recent reply

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Daigo Kurosaki
  • Walnut, CA
3
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20
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How can I get over my fear of out-of-state investing?

Daigo Kurosaki
  • Walnut, CA
Posted

Hello BP, 

I'm going to buy my first out-of-state rental property (MFR), since the numbers don't make sense for where I live (Los Angeles).

However, I'm so afraid that I am going to be scammed and lose all my money, that I'm afraid to pull the trigger on a deal. 

I have this irrational fear that I could buy something from someone who doesn't even own the property, or some buyer/seller agent are both scamming me, or that I buy a "lemon" that isn't even really a cash-flow positive property. 

I've met some agents online and through BP, but why on Earth would they want to offer ME a good rental property? Aren't there others just lined up to buy it? Or why not sell to their own company? Am I crazy or did I just win the "rental" lottery?

I'm definitely new to out-of-state RE investing, so if anyone has any tips/checklists of things I need to do to verify an agent/deal, please let me know. It might just give me the confidence I need to buy :)

Most Popular Reply

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6,201
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4,343
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Dawn Anastasi
  • Rental Property Investor
  • Milwaukee, WI
4,343
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6,201
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Dawn Anastasi
  • Rental Property Investor
  • Milwaukee, WI
Replied

You leave out of town and you trust your friend to house sit.  You let them around all your valuables and trust that they won't dig into your personal effects.  You trust them like this because you got to know them.

It's the same thing for buying an investment -- you need to trust who you are buying from, not just what you're buying.  If someone is reputable and has integrity, they're not going to screw you over.

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