Is it safe to purchase real estate investments out of state? Should you be worried about what could go wrong? What should you consider before purchasing a property so far away? These are really common questions, so let’s talk about the truth.
Many investors are initially hesitant about purchasing a property outside of their home state, but as long as you’ve got a few things covered, your business can run seamlessly. On this episode of Investing in Real Estate, we’re going to discuss investing out of state, getting to the root of your fears, and so much more!
More About This Show
I find that whether or not an investor wants to purchase out-of-state is a personal preference. It can depend on a few things: like whether or not you live in a good rental market, and your philosophy on property management. I do know some investors who have had luck purchasing close to home and managing things on their own… but most investors that I know want a passive experience.
If you want to start building a passive income, you have to go where you’ll earn the highest returns. And unless you just happen to live in one of the best rental markets in the US, you’ll probably have to leave your comfort zone, and look for properties in different markets across state lines.
If this sounds like you, there are three main things I want you to do to ensure a safe investing experience.
Three Action Steps
- Address your fears. Write them down, think about what you’re really afraid of. Write down all of those “what ifs,” and then try to come up with a solution for each one. I think if you do this exercise with the right mindset, you’ll find that there’s a solution for everything.. and if you just can’t work past it, then maybe investing isn’t for you–and that’s okay. Be honest with yourself.
- Market research. One of the most important things you can do to ensure a sustainable investment is to purchase in the right market. I have entire videos about the ten-step process we use to nail down a rental market. But here are a few key points to think about: landlord friendliness, crime rates, vacancy rates, job diversity.
- Screen your property management teams. Your property management team is really going to dictate your entire experience.. this is key to successful investing. Don’t be afraid to vet multiple properties, and don’t be afraid to ask the hard questions. Again, I have a full video on 5 questions to ask a property management team – make sure you check that one out before you hire a property management team.
If you’ve covered those three bases, you’re more likely to have a passive, profitable, and headache-free experience. The truth about investing out-of-state is that it’s often more doable than people think! It just requires a little bit of forethought and research. With that being said, it’s important to note that there’s not just one path to building wealth real estate — so I want you to check out this next video on creating your personalized path to financial freedom.
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DISCLAIMER: I am not a financial adviser. I only express my opinion based on my experience. Your experience may be different. These videos are for educational and inspirational purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. There is no guarantee of gains or losses on investments.
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