How to Succeed As a Remote Real Estate Investor
You can become a remote real estate investor and leverage your income, but this career is a challenging one. Here are the keys to your success.
Keyword(s): real estate investor
You may think the housing market would be on its knees due to the pandemic. Not so, according to research. In fact, new home sales were 43.2 percent, partly due to moves to the suburbs.
It makes it a great time to start investing in real estate. The obvious choice would be a nearby market or an obvious market like California or New York. Trouble is, it's hard to make a profit on properties in these locations.
The solution? Remote real estate investment.
As a remote real estate investor, you can invest in markets across the country. You own the properties, and you work with a property manager to cover the daily management issues.
Keen to jump into a new career as a real estate investor? Read on to learn how to maximize your success.
Manage Your Risk
Investing in the same market means all your properties there are vulnerable to the same issues. The benefit of remote investment is your ability to spread your risk. You're no longer dependent on a single local economy.
Think of it this way. Instead of owning a single block in one city, you own those rentals across a huge geographic distance. If the market dips in one state, you still earn an income from the other areas.
The trick is being able to spot the best markets and investment properties. You'll need to be able to analyze properties at a distance. Choosing solid markets can be a great way to reduce risk.
Choose the Right Properties
Check cities where the real estate prices don't swing to extremes. A steady job market is another good sign. Look at the economic potential and outlook of your intended location.
Target the average American family. There were around 3.8 million foreclosures between 2007 and 2010.
These families lost their homes during the global financial crisis, and are stuck in the renting pool. As a result, there will always be a need for solid family homes.
Hire a Great Property Manager
One of the things that can put investors off remote real estate is the lack of 'hands-on' contact. Who will handle everyday problems like broken appliances? Or collect rent and deal with tenant problems?
Hiring the right property manager is an easy solution. They can tackle these normal issues on your behalf. It leaves you free to enjoy investing in a property without calling plumbers or handling complaints.
Shortlist a handful of managers in each location. Check on testimonials and collect references. Once you hire your manager, keep in touch using video call or email.
A good property manager can even let you know about extra investment opportunities in their property market.
Become a Remote Real Estate Investor
Now you know how to succeed as a real estate investor. Combine a keen eye for up-and-coming markets with knowledge of popular property types.
Assemble your team with trusted property managers to handle your new investments. This will leave you free to start looking for your next opportunity.
Need a property manager for your new Seattle-based investment venture? Contact us today and we can discuss your needs.