Conflict Of Interest?
I am considering buying a couple properties about 3000 miles away. Is it smart to have the realtor I plan to use do my due diligance???? Is that a conflict of interest? My initial reaction is yes. Without taking time off work and spending $500 to fly back and check them out myself, how would I get the properties inspected? They are late 1800 duplexes.
Why? (just kidding)
Let the realtor know that you are interested in establishing a long term relationship with them. In other words they should not just be thinking about this deal's commission.
You could also call a property management firm to look at the units. Of course you should have them inspected.
However, no one you hire has anything on the line. If you are serious about investing you should inspect the properties. If it is a hassle to travel maybe you shouldn't buy property 3,000 miles away.
I would hire an inspector to do this.
[addsig]
It is only a hassle at first. I plan on relocating this summer. I would like to buy them now so I have a place to relocate to. How could I get a referal to a good inspector? Would a local PM company be able to do that?
Also, how can you figure out an appreciation rate for an area?
You can't really figure out future appreciation rate, just because an area appreciated 10% in the past, doesn't mean it will in the future.
So you have never seen these properties? How did they come to your attention? I have bought a property in foreclosure because the previous out of state owner was part of a scam and way over paid for a property.
I have only once bought a property that I had not personally visited. But I knew the FHA appraised value, my partner had seen it, and my realtor had seen it and come up with a repair estimate. Also, it was built in 1985 and was owner occupied.
Hire an inspector and an appraiser. Hire your own, not someone who is recommended by the person who brought this property to your attention.
Brenda
This TCI web forum is the greatest; I wish they had this years ago. I have been in the business many years and I am learning so much. It is good to see people buying long distance. I have felt like such a freak buying property 2 hours away. 4 hours has been the longest drive time from a property I purchased to my home. When I close on these properties, the lawyers always want to do the settlement by mail and think I am insane by driving a few hours for my check. Some try to put limits on what is possible; this web forum illustrates the unlimited possibilities.
Where is the subject properties that you are looking to purchase?
[addsig]
western New York. In the Buffalo area.