Out of State Investing
Advances in technology have made long-distance investing not only a reality, but actually a fairly uncomplicated feat. And turnkey investing has made it easier than ever to purchase and manage real estate from a distance. With turnkey, the property has already reached the finish line; all the rehab is done, the tenants are secured or in the process of it, and the management group is ready to take on whatever they’re presented with. All the property needs is an investor – but are you the right one for it if it’s located out of state?
Let’s discuss….
Why Would Anyone Buy a Property Out of State?
First up, let’s ask the most basic question here. Why would an investor buy a property they don’t live anywhere near, or even – gasp – purchase it sight unseen? The answer is simple, actually. The market they live in isn’t productive enough, but six states over, real estate is bumpin’. This is basic economics. Investors go where the money is, even if that means they’re buying property hundreds of miles away and they’re relying on the expertise of others in the area to ensure it’s a solid investment.
But Isn’t it Risky?
Well, sure, to some degree. But then again, any type of investment has an element of risk, whether it’s a property two blocks over or a collection of valuable artwork. That’s the nature of investment. The thing to do is to minimize the risk as much as possible. Where real estate is concerned, this means researching and doing your due diligence on a property before you buy it. Take the time to study the local market, the historical trends, projections for the future, and of course, the property itself.
But How Do I Do All That When I Live So Far Away?
This is where turnkey groups come in. While there are plenty of instances of investors working with local turnkey groups in their own markets, these companies are ideally suited to work with out-of-town investors. Why, you ask? Because they’re experts in their markets, and they’re experts in working with investors. It’s a win-win. An experienced turnkey professional can offer valuable insight into the area you’re interested in, right down to a specific property’s neighborhood. Plus, the turnkey company has already taken care of the grunt work involved with making a property not only habitable, but appealing to a wide range of tenants. This is a huge benefit for the long-distance investor, as securing contractors and managing repairs from a distance is a massive challenge. The turnkey group – if they’re a good one, anyway – also has a property management group based in-house who have taken care marketing the property and landing high-quality tenants.
Our advice? If you’re considering investing in a piece of real estate that’s located in a different market than you, use a reputable turnkey group. Not only are they experts in the local market, but they have already taken care of the lion’s share of the work and can guide you through the investment process. Of course, you should still do your own homework to ensure you’re making the most informed decision possible, but when you consider the benefits of using a turnkey group for long-distance investment, it’s kind of a no-brainer.
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