I am a new investor interested in some out of state investment properties, mostly rentals. What kind of things should I be looking out for to help avoid scams? Specifically what kind of paperwork would be the best indication of a deals legitimacy? Thanks…
You need to know your market. Find out how much rent you can get out of your proposed property. Be wary of people who advertise “positive cash flow” just because the rent amount will cover the mortgage payment. Are you planning to travel to these out of state regions to see the properties first hand?
The most likely best contacts for out of state investing is to contact the local REI cub in the area that you want to invest. Hire those people to be your property managers, bird dogs, investors, etc. The fraudsters and scam artists probably aren’t attending local REI club meetings, and if they are, the local members can probably easily sniff them out and oust them. Right along with that thought, they probably are aware of the local fraudsters to be wary of.
Dean
Good idea. I’ll look into that when I’m ready to invest.