When it comes to real estate investing, never assume that you need to see a property in-person to determine if it’s a good fit. This outdated mentality can limit you to investing only in your own immediate area, which can cost you more money (especially once you consider how many booming real estate markets there are nationwide with lower initial investment amounts). Leaving any of them off the table due to perceived inconvenience would be a big mistake.
Nonetheless, we do realize that the old adage “seeing is believing” allows many investors to sleep more soundly at night, especially since there’s so much at stake… so let’s make sure that your vision is 20/20! Here are some tips for recognizing a solid investment, no matter what its proximity.
Tips for Determining a Solid Investment Property: Sight Unseen
Utilize local experts
When it comes to the multiple aspects of purchasing a viable investment, no one can do it all— so allow your executive instincts to take over! More specifically, put together a qualified team of local experts to vet the property in-person and report their findings back to you. By “qualified,” we mean professionals with a background in real estate investing, knowledge of the property’s local area, and proficiency with technology (you’ll likely want a video walkthrough of the home and/or recurring video chats with your team).
Find a Local Property Management Company
Putting together a team of experts includes finding a dependable research property management company; research those in the local area, then hire the one you’re the most comfortable with. As they will be responsible for running the day-to-day operations of your investment, this partnership largely determines whether or not your investment will stay financially viable.
Focus on the Data!
With your team in place, tell them to show you the numbers! Quantitative data is a far better indication of a property’s potential than more superficial facts like what the dwelling looks like (or even what condition it’s currently in). For this reason, you’ll need to know the following statistics regarding your potential property: its surrounding area’s vacancy rate and comparable rent prices, as well as all (likely) maintenance and closing costs. For additional information on the specific statistics you should be considering, take a look at HomeUnion’s “Top-Down” approach.
Perform Market Research
Fruit is only as good as the tree it came from… so make sure you look at the bigger picture— i.e. the property’s surrounding real estate market, in order to determine if it’s worth your hard-earned money. Ask yourself these general questions: Where has the market been? Where is it now and likely to be in the immediate future? Then, get more specific, by considering key performance indicators like the area’s economic growth (or lack thereof), current job statistics, and housing market stability levels. If you’re considering investing in a HomeUnion market (and why wouldn’t you be!), here’s a helpful resource to help get you started.
Manage Your Emotions
Realize that the property in question isn’t where you’ll be raising your family and creating lasting memories— so don’t get overly emotional! Even better, don’t get emotional at all; instead, remember that the entire process is a business transaction. Focus largely on the number crunching, performing market research, and just as importantly— refraining from making purchasing decisions based on impulse.
Invest Remotely with HomeUnion
HomeUnion enables you to buy real estate properties— sight unseen— by performing all the tasks mentioned above, and reporting all of our findings back to you. Becoming a remote investor is closer than you ever thought — so call us at 888-276-0232 or schedule a consultation today to get the process started.