How to Invest in Real Estate Somewhere Else

One rule of real estate investing is “don’t buy investments in another city; you won’t be able to manage or control them sufficiently.” However, if there are no solid investments in your own city, you may have no choice but to look elsewhere. That’s not all bad. In fact, here are 4 benefits of long-distance investing:

1.      There are deals all over the place. You can choose a market that helps you achieve your investing goals. Looking for cash flow? There's a location with that. Looking for commercial offices near airports? There’s a location for that, too. You need to define your strategy and goals, then start looking for markets that align.  

2.      Being there is not required. Perhaps the biggest fear investors have when considering long-distance investing is not being there. What if something goes wrong? What if the tenant skips town? Luckily, there are plenty of property management companies ready to help. Even though they’ll cost a percentage, it’ll be worth every cent for the peace of mind and protection of your investment.

3.      Locating deals might not be as difficult as you think. Be clear about the criteria that make a good investment for your purposes. Then use online demographic and real estate sites to find likely candidates. Should you visit in person? That’s advisable. Meet with a few real estate agents until you find the right partner. Once you know an area, you’ll be more confident about buying sight-unseen.

4.      Have a scaleable strategy. Once your strategy is in place, you can rinse and repeat, either in the same market, or a different one. Suppose you have a vacation rental around Disney World in Florida. You will already have a property manager, maintenance person, and cleaning company in place. To grow, you only need to find another property close by.