Years ago, buying an investment property remotely was a pretty big risk. You had to spend some real-time in the market getting to know the properties, the tenant pool, and the local contractors and vendors.
It’s a lot easier to do now, thanks to technology and the instant availability of reliable data that you need to make smart investment decisions. Local property management is another huge resource for remote investors. Now, it’s possible to buy an Ormond Beach or Daytona Beach rental home from anywhere in the world.
Our market in Volusia County is especially attractive to remote and virtual investors, and so today we want to offer some tips if you’re out of state or even out of the country and thinking about buying here.
Benefits of a Good Property Management Partner
Most remote investors are quick to find a local broker, a mortgage company, and maybe an attorney or an insurance agent. These are the partnerships you’ll need to buy a property.
This is perhaps the most important professional partner who can facilitate a remote investment effectively. You’re counting on your property manager to help you understand the local market in terms of:
- What the local rental values are and how much you can earn on a potential property.
- Tenant demands in the area as well as average vacancy and retention rates.
- State, federal, and local laws that pertain to rental property and real estate.
- Where to find vendors, contractors, and other partners.
Your property manager can physically visit the property that you’re not going to set eyes on. You can expect a thorough estimate backed by industry data that tells you how much you can expect to earn in rent, how long it will take to find a tenant, and what kind of work will be necessary to get the property ready for the market.
Remote Investments and Technology
You cannot invest in property remotely without access to excellent technology.
As a remote investor, you’ll want to stay connected to your management company and your entire team of local professionals as you’re buying an investment home. You’ll want to participate in a video tour and read inspection reports. You’ll need to review invoices, check on rental payments, and ensure your rental payments can be directly deposited into your account.
Make sure you and your management company have all the technology necessary to make it feel like you are present when estimates are being given for work, inspection reports are complete, and offers are made and negotiated. Plenty of software programs, apps, digital platforms, and even social media sites exist to facilitate the efficient and effective purchase of an investment property remotely.
Due Diligence for Remote Real Estate Investors
If you’ve made an offer and it’s been accepted, use the contract period to do your due diligence. Check the deed and the title, secure your financing and gather inspection reports and appraisals.
Ormond Beach is a competitive and fast-moving market. It may be tempting to waive an inspection or make concessions that you normally would not. This isn’t something you should feel pressured to do. As someone who is not physically present for the process, you want to make sure all the boxes are being checked.
Today, you can close the deal remotely. Your digital signature is just as valid as your physical one, and the entire process can happen virtually.
Remote investing is a fantastic way for you to explore other markets and increase the size and value of your investment portfolio. Make sure you’re prepared, and surround yourself with local experts like our team.
If you’d like some help or additional advice, please don’t hesitate to contact us at Oceans Managing Group at (386) 255-8585, or visit www.oceanspropertymanagement.com.