How to Invest in states other than your own?

Asked by Peter, Sat Sep 29, 2007

I live in Hawaii but it is too expensive for me to start investing. I need to invest in a more affordable area but how do I verify property condition, negotiate, etc from so far away?

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Brett Dunne -…, Agent, Upland, CA
Mon Oct 1, 2007
Peter:

All of the answers so far have been great. I would add a strategy: Do you have a friend/family member you could partner with? If they live in an area that you want to buy in then they can be your eyes, ears and nose. Most all investors have a network of people helping them invest and increase their net worth.
Web Reference:  http://www.DayBreakGroup.com
0 votes
ian cockburn, Agent, New Orleans, LA
Sun Sep 30, 2007
It depends on what you have.

We have people coming from all over the world looking to invest in New Orleans. What I have found is that most come with the intent to get something for nothing, and fail to take time to realize value. Biggest problem is the lack of trust of obvious deals...whether it be commercial or residential.

To best understand an area, especially an area of rapid growth and rebuilding/renovation opportunities, determine exactly what you want and what is an acceptable investment for you. Then evaluate what level of risk vs return you want over 5 yrs, 10 yrs, etc.

Once you know what you want, put together a spreadsheet that details your needs and find an aggressive knowledgable agent in the particular place you are interested in. With increased risk/better returns, you need an agent who understands construction as much as real estate...and if commercial you want someone who understands the rental rolls throughout the city/town.

Pick a place, and I can help show you how to do it.
Web Reference:  http://www.iansellsnola.com
0 votes
#1, , San Francisco Bay Area
Sat Sep 29, 2007
You know... I asked the same question 5 years ago.

I discovered that emerging countries in the European Union were advancing like no bodys business.

I was fortunate enough to invest in real estate in those countries and my investment has gone through the roof. 5 - 8 times fold!

You need to keep your eyes open for opportunities not just in your own back yard.

You need to think outside the box.

Irac is probably not the next great real estate investment but you had better keep your eys on the former Soviet Republics of Estonia, Latvia and Lithuana... and even Poland as potential fortunes will be made as these emerging countries evolve in foriegn trade.

There are acres of diamonds in your backyard... but what do you designate as your back yard?

Round the corner from your house?
0 votes
Fontella Pap…, Agent, Parker, CO
Sat Sep 29, 2007
Peter, Excellent question!! yes finding a top producing agent in the other state is critical. You can do this with the help of your agent in Hawaii. If you don't have one, then go to CRS.com call and interview a few agents that are Certified Residential Specialist, when in doubt it's better to over qualify then under. The local agent can do all the above for you (inspection, negoiate, etc). I personally have investment property outside of Colorado and its worked out beautifully.

One of my listings just sold last month to a California investor, they closed on a Monday and they had renters moving in on Wednesday.

Go for it Peter!!! Don't let the California people buy up all the property!!

:)
0 votes
Linette Carr…, Agent, Wilmington, DE
Sat Sep 29, 2007
It is important that you have a good agent that is looking out for your interests. Ask an agent in your area to do some research for you. If you see a property that interests you, before you make an offer on it, have the realtor set up an inspection of the property before you make any offers.
Once you have read the inspection report and disclosure thoroughly you should be able to make a clear decision.
Since you will not be available to keep an eye on your properties, make sure the agent in the state you are purchasing , sends you some management companies to interview. They can collect your rent and take care of any repairs that are necessary.
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