Researching Out Of State Deals
I was just reading about the out of state deals being to good to be true.
To more experienced investors what are some more specific techniques for due diligence of an out of state or distant in state area?
Where exactly do you look for info besides talking to realtors in that area. What pieces of info gives you the ok to go ahead and make it happen?
I am a beginner and I am really interested in some long distance investing.
Thanks
Lear to walk before you run!
PA has many affordable (reed cheep) properties, well suited for beginners. Trying to start investment career in unknown distant markets may turn out to be substantially difficult for many reasons, which are in great dept elaborated in this forum. So with that in mind, let me ask, why would you wan to burden your first steps with unnecessary hurdles?
Keep it simple; for example, look for an agent who specializes in HUD properties. As far as I know, PA market still offers some good opportunities to purchase mismanaged, FHA insured properties at hefty discount. Fix it rent it and then once you stabilize your first deal begin thinking about the following one.
[ Edited by REOCON on Date 06/11/2006 ]
As one of the final steps in a due diligence process, use of PI’s services described above can be helpful. However, the non-mentioned part of the initial question seems to be directed more towards how can one find OOS deals to begin with? A quick response to this question would be; before you catch yourself opening bigger then you can handle can of worms, finds yourself an investment specialty first (SFR, multifamily, commercial, etc), write down on the peace of paper your specific reasons why would you want to go OOS then if the reason is valid (e.g. local property value to high ala So Cali or New York), move on by addressing specifics. Although it sounds trivial and unnecessary, thinking on paper caries much greater value within, then what most of us believe; In the process your week spot arias and particular questions would force themselves up and you can ask them here whenever you need help.