Buying Property in Another State
Last month I was working on purchasing properties in three different states. I had to quickly figure out important things like… how do I write the purchase contract? where do I buy insurance? how do I keep people from stealing my plumbing? Managing deals from afar is not simple but it can be done. The key is having good resources on the ground in those areas, or working with someone who has done that work for you.
I spend a fair amount of time continually building relationships with people like contractors, real estate agents, and people who are willing to go take pictures of a property or drop off a contract. That way my clients don’t have to reinvent the wheel when they’re considering buying an investment in another state. I also travel frequently because nothing beats walking through a property or driving a neighborhood so I can see it with my own eyes. Again that helps my clients who may not be able to take time off work or leave their family.
Why go to all this trouble? Dollars of course! As Denver becomes more and more competitive and prices climb higher, investors are looking for new ways to make their money work more efficiently. Why pay $150,000 for a house that will net you $150/mo, when you can buy three houses at $50,000 each that will earn you $300 or $400 each? Or why overpay for a $200,000 house to flip and earn $20,000 when you can pay $10,000 for a house to flip and make $50000, right?!
Yes, investing at a distance is uncomfortable at first, but with good resources, lower prices, and the ability to spread your risk out over more properties, it can be a safer and more lucrative investment strategy. I know most people aren’t confident enough to take that step, but I’m here to help those that are. If you’re someone who feels priced out of the Denver market but still wants to invest in real estate, give me a call and let’s talk about your options.