Remote property investing can be just as lucrative as localised investing. They say the world is a much smaller place than it used to be. This is true. Considering the fact that now it only take hours to get from one continent to another whereas in ancient times it took weeks if not months; now you can talk to someone on the other side of the globe ‘face to face’ at any given time of night or day provided you have access to internet and a favourable long distance package.
Of all this, the best thing that modern technology has done for a real estate investor such as myself is that it has made it possible to invest in property remotely. I could be in New York and without even moving, buy and sell a house in Las Vegas. Of course, this is a very simplistic way of putting it but you get the gist.
As much as I love making money through real estate, sometimes, the kind of lucrative opportunities that I simply cannot let pass me by are halfway across the world at the opportune moment. When they said that the key to property investment is ‘location, location, location’, they neglected to mention that sometimes, the best locations will NOT be anywhere near you. Savvy moneymakers would never let such a minor detail stand in their way of making money. If you will indulge me, I will show you how to invest in property remotely.
How to invest in property remotely
Have a healthy cash flow
Remote property investing is, quite simply put, running a business. Since you are half way across the world, you cannot show up every time you buy a property to fix it up yourself while you have a few drinks with friends. You will need to hire people to do all this for you. You will need property managers that are on the ground and you will need to spend money on almost every single thing. From contract signings to advert placements and so on, having a healthy cash flow will ensure that everything runs smoothly while you are busy living your life somewhere else.
Possess impeccable research skills
On the ground, you can physically walk up to a house give it a general look over to see if it is worth your time. When buying remotely, you do not have this luxury. To combat this disadvantage, you will need to have impeccable research skills. You will need to be able to find property that is not only highly likely to make you a profit, but that is also not in the market simply because no one else will buy it. You will need to hire inspectors and companies you trust to give you an honest assessment and valuation of the property in question as well.
Have a remote team working for you
You will need to build a network of experienced real estate investors and other industry stakeholders. These are the people with whom you can discuss potential property investing opportunities and also with whom you can share experiences and knowledge. Most importantly, however, you will need to build a network of trustworthy contractors, inspectors and realtor on every remote location you invest in. Here is a nice short video from another property investor who has closed deals remotely, Rick Otton, as he describes the team you’ll need when transacting.
Remote property investment has a lot to do with trust and analytical skills. Once you have this figured out, you could be making money from rental units in Dubai while sipping tea in Texas.