Long distance real estate investing is more popular than ever! Even before the recent disruptions and restrictions, virtual real estate investing gained popularity due to the flexibility technology allows for how people work. Then, in the face of the pandemic even more people shifted to the option to work from home.
Today, the desire to gain autonomy by running a home-based real estate business has increased. With virtual real estate investing, you can invest in properties across markets with the acceptance of both buyers and sellers. In fact, long distance real estate has quickly become the preferred way to manage real estate investing.
Does Long Distance Real Estate Investing Work?
It almost sounds too good to be true – the idea that you can expand your business into new markets using your computer and smartphone. But, it’s true! Virtual real estate works!
Wholesale, fix and flip or buy and hold real estate investment strategies all work well virtually. While real estate investing is a relationship business, new technology makes it possible to have a personal connection across distances.
3 Benefits of Long Distance Real Estate Investing
1. Expand into Better Markets
No matter where you live, with virtual real estate you gain access to the best markets for real estate investing. For example, you may live in a higher priced or saturated market where making a profit is more challenging. To increase your profit, you need markets with a lower point of entry. When costs are lower, you realize an increased ROI (return of investment) both financially and with your time.
2. Diversified Properties
The properties in your local market may not offer much diversification. By investing in other geographic areas, you open the opportunity to expand your portfolio with varied property types. For example, you might want to invest in mobile home rentals, vacation rentals or multifamily housing. Don’t put all your eggs in one basket. Instead, expand your investments to different areas and types of investments.
3. Exponential Growth
With long distance real estate investing you can test different markets to determine the best places to spend your time and money. Focus on the markets that yield the highest ROI. Your real estate business and portfolio grow exponential when you have more time and money to invest.
How to Make Long Distance Real Estate Investing Work for You
Virtual real estate investing works best when you have a strong plan and the right tools!
Research Local Markets
Start by researching local markets to find the best fit. Do your due diligence for the area in relation to economic growth, supply and demand, inventory turnover and other relevant factors. The National Association of Realtors Research and Statistics is a great resource for research.
Finding leads is an ongoing challenge for real estate investors. However, today’s online platforms and tools make it much easier to connect with buyers and sellers. Focus on higher quality leads that truly have the interest and resources to participate in the process. The best leads come from county court records, like with probate or tax delinquent properties. Purchased lists usually have a lower success rate. Spend your time and money on what works to grow your business.
Build a Team
As your business grows, so should your team. Property management requires hands-on effort to show properties, renovate and provide property maintenance. Build a team you can trust to manage your long distance investments. This also means it is good to invest in a few set areas versus owning one property in each geographic location. A strong network of title companies, real estate attorneys and other professionals also helps keep your virtual business on track.
Know the State and Local Laws
State and local laws vary for real estate investing. Don’t risk fines or court costs by ignoring differences in legal requirements. A local real estate attorney can help with the legal process. Understand the differences in the laws and property taxes. For example, Illinois law requires you to have a license to wholesale. Also, property taxes in some states or even some areas within a state are much higher than average. It’s good to factor that into your costs.
Long Distance Real Estate Investing Works for Women Investors
Virtual real estate investing is a perfect option for women investors. You have the freedom to run your business from anywhere. Especially in these uncertain times of restrictions and extra family responsibilities, long distance real estate gives you reach into new markets using technology and with added flexibility.
At REIW, our biggest recommendation to start is to study the market and perform proper due diligence. Then, you can safely and exponentially grow across markets. At REIW, we connect likeminded women investors through events, training and our supportive online community. Join today! Download
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