Years ago, remote real estate investing was a complex and deeply involved process. Purchasing a property sight unseen required working with a trusted real estate agent and having lengthy phone conversations about the kind of property you desired, your budget, and your overall investment goals. After the agent compiled a list of prospects, you’d get on a plane and fly out to see them. Perhaps one would be a match and the trip would be a success … or perhaps you’d fly back home and start the search all over again.
The internet changed all of that. With listings, photos, and property information posted online, prospective buyers now have extensive information available at their fingertips. Not just information about any specific property, either — buyers can do online research about the rental and real estate market, crime rate, quality of schools, and other helpful data points before narrowing their list of potential properties.
That research is important because it’s tough to develop a clear understanding of the value of one neighborhood over another when you’re unfamiliar with the entire area. It can also be a challenge to get an accurate perspective on the condition of a property only based on pictures and the listing agent or seller’s word. Are there issues that would be apparent when seeing the property in person or that will pop up on inspection?
This is why many people skip the remodeling process entirely and search for ready-to-rent turnkey properties. They also find it helpful to work with a turnkey investment company that’s familiar with the area in question and can quickly help them sort out the bad properties from the winners.
Once you’ve secured a team to help you choose the perfect property, you’re ready to realize the value of remote real estate investing. While some people feel safe investing only in one area with which they’re familiar, this type of investing can be catastrophic should a disaster strike. Over the past few years, investors have seen portfolios in concentrated areas wiped out by hurricanes, unexpected flooding, and historic wildfires. Diversifying helps minimize the risk when it comes to real estate investing.
Working with a real estate investment company to purchase remotely also helps eliminate the emotional aspect of getting the deal done. If you’re too familiar with a specific property or area, it’s easy to get caught up in the idea of making the purchase. When you view the property simply as an investment opportunity and haven’t gotten involved with the transaction on an emotional level, you’ll be able to calculate the numbers and make your decision based only on the how much money the property will generate.
What about after the deal is closed? Isn’t it a challenge to be a landlord for a property that’s not in your geographical area?
Not if you’ve hired an experienced property management company. They’ll cover all of the bases for you, from finding and screening tenants to collecting rent and assessing late fees. Even better: they’ll communicate with your tenants should a problem arise and work to achieve a resolution. A property management company will even take care of all necessary maintenance and schedule repairs when something breaks down. All you have to do is collect monthly rental income and be on the hunt for the next property.
Because remote real estate investing helps you diversify your real estate portfolio while allowing you to remain emotionally unattached and blissfully uninvolved, it’s truly one of the smartest ways to build long-term wealth.