I plan to invest in different states. Do anyone knows how to determine if a area is good for investment.
theirs alot of ways to check.if it was me i would check it out for myself or send somebody you trust with your lifeCheck with the local police stations,call schools,pull comps,etc etc
Here in Pittsburgh we have many out of state investor’s buying proprties our market is still good. If you need a hand or advice with anything in South Western Pa feel free to ask.
Your nuts!!! Good luck!!
Determine if you are after cash flow or if you looking to flip properties.
I am looking for flips.
If you are not going to be on the ground and hands on for the rehab project then you had better find a good project manager in whatever city you decide to invest in. I’m in Cleveland, OH and I see a lot of out of state investors. More than half my clients are out of state, some of them did exactly what you are talking about.
If you don’t have someone who knows the area and knows how to do rehabs for flipping then you’re going to have a difficult time. I’m seeing more and more out of town investors still, to this day, buying properties for less than $10k in the worse parts of Cleveland…the kind of areas I wouldn’t only be caught without my gun if I were dead. Yet they were never told how dangerous the area was.
I had a woman from Seattle I met last week who was telling me how disappointed she was with the Cuyahoga County someone or another who sent her photo’s of a foreclosed property. Obviously they didn’t take pictures of the worse damaged areas of the property, rather only photos that put the property in the best light possible. She paid $7k for a house that needs to be bull dosed. If she had me do the due diligence for her she probably would have choose a different property.
GooD LucK! :beer
I got burned doing this early in my career, so now all I do is local.
It can be done but it’s going to be much risker since you’re very far from the property especially if you are going to rehab.
As Foreclosure Negotiator said get a very good project manager and make sure you communicate with him or her as much as possible.
Something you might want to try is hire someone local to take pictures for of the properties you want to buy just to see how good or bad the property is.
i live in wi and invest in the up of mi, over a 3 hour drive and it seemed worth it at first and now im cashing in my chips…i just have too many homes to manage properly…if you want i can give you a great deal on 4 homes in escanaba, one on lake michigan for 250k package deal (all 4 homes )
If you are going to invest out of state, what is your criteria? And if you invest with someone out of state, you should do all you can to build a trusting relationship, because you want to be able to trust his/her judgement and expertise in giving a true value to a property’s potential since that individual should know the area and territory he/she is investing in. So having that established, should you get a proposal from the investor out of state, its good if the investor knows a good investment from bad one, one that should be passed by. But you also want to do your due-diligence as well. There are many sources on the internet that can help you determine the value of a property in any state. Find them because these companies form a part of your business circle that help you make decisions for or against a particular investment.
In my city, there are very good investments. For example, a fixer was recently sold for $275,000. Its a 2bdrm/2baths condo in a very desirable area. It needed approximately $40,000 in renovations to make it look new. Granite counters, wood floors, crown molding, stainless appliances, new kitchen, new bathrooms and this condo could easily and very quickly resell for $575,000, and this price is still below market about $20,000. That’s a nice $200,000 profit, short term investment. I need investors to help finance these deals. Let me know what you think.