Do You Have Your Boots On The Ground?

Investors sometimes want to invest OOS (Out of State) for various reasons. Mostly because the markets they live in are saturated and overpriced. Perhaps you're hearing that other markets are seeing properties that are generating strong cash flows with good returns. Whatever the reason for investing remotely or locally, you most likely understand the value of having a team in place. So do you have your "Boots on the Ground?".

When you're planning to invest in real estate, one off the first things you need to consider is the location you're interested in and then research, research, research it. Granted you can watch videos and read blogs and articles about your target market. You can even view, pick and purchase properties online. But whether you're familiar or not with that city's market, it's always a good option to ask those active in them. Here in BiggerPockets, and elsewhere, I see local and remote investors inquiring about various markets hoping to find sound investing advice. Follow their lead: Why not start a post and inquire further? Have a keyword search set up. I have one set up for Pittsburgh, so anytime someone talks about Pittsburgh, that conversation comes up. Bottom line: Set up some form of automation and get with the people that really know your area of interest and/or have had success. Then from there, build a team in your first year of business.

Why is that important? Because you don't want to blindly invest your money. You've heard of "Swampland in Florida" scams, right? Don't fall for it. Don't tap into all of your resource only to lose them. Invest with a plan. I realize that not everyone can visit the area and look at properties they are interested in, but I do suggest doing so if possible. If not, have someone in that area do the legwork. You don't have to go it alone. Reach out to fellow investors and investing savvy realtors in that area. They may even be able to meet you while you're there. Realtors can create automated searches with your criteria, then set up appointment times to tour with or for you. Good realtors will go the extra mile by taking pictures/videos while providing their professional feedback on properties that interest you. They can also discuss fair market values, resell potential, good/bad neighborhoods, and even potential market growth. Experienced realtors and investors have access to lenders, contractors, plumbers, property managers, title/closing companies and various other real estate professionals. Fellow investors in your target market are very valuable in offering strategies, analysis assistance and advice on such topics as scaling or types of real estate they have had the most success with. These are just a couple of examples of successful investors' and realtors' wealth of knowledge. So reach out to them online, then call/email/text them and if possible meet them in person. Compile your list of questions to assist in your due diligence.

As you know, there are so many things to consider when investing in real estate. Is it going to make me money and will it resell for a profit are major considerations?, but there's a host of other issues. What kind of funding can I get?, what are the tax laws?, zoning ordinances, condition of property, cost to rehab? If you need funding should you choose hard money lenders, conventional loans, FHA or 203K, VA or something else? Not to mention your interests such as off market vs. MLS listed properties, house hacking, buy and hold, airbnb, using turnkey companies, rehab renovate and resell etc.. Then do you have the specific people in place to help maintain your investment such as property managers/property management companies, contractors, electricians, plumbers and others. You don't want to live in California only to have the pipes break in your Pittsburgh Air BnB. Also do you have the people you may need during acquisition such as realtors, lenders, inspectors, appraisers, title/closing companies etc? Having a team in place may help you to be more successful. You're certainly welcome to do it on your own, but you don't have to go it alone....So Get Your Boots On The Ground!