Out of state investment generates cash flow and tremendously improves your finances. Before you start investing, it is nice to educate yourself in real estate investment and to choose the right market depending on your needs.
Whether you choose to flip properties, buy or hold, you need a knowledgeable property manager. You should also decide on your investment property criteria and learn about the local laws. New Street offers full service real estate with their specialized team of professionals that deal in marketing and technology.
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- Figure out your financial freedom number;
- Hire a property manager or prepare to travel;
- Decide your investment property criteria;
- Learn the local laws;
- Build your team;
- Schedule your time & prioritize next actions.
Figure Out Your Financial Freedom Number
Don’t go into the whole real estate ordeal before deciding on your financial goal. Figure out if you want to free yourself from debt or to build your financial freedom. After you decide on these starting points, you are able to set a goal that you want to reach at a certain point in the future.
Even if your goal may look far-fetched at the beginning, give it some time and you’d be surprised with the result. Out of state investment can be a very profitable business if you know how to run it.
Hire A Property Manager Or Prepare To Travel
By hiring a property manager you are saving yourself plenty of time or travel, depending on the location of the property. These people have all the knowledge and are constantly available, especially in cases of emergency.
During the renovations, you waon’t have to make every single decision on your own and you won’t have to answer you phone constantly to be asked about the details. That’s the job for a property manager who won’t bother you about every minor change or emergency since they’ll be able to handle it quickly.
Decide Your Investment Property Criteria
Think about a written investment profile which you can share with others, whether it be partners, investors or real estate agents.
You can also set a debt coverage ratio, capitalization rate, cash on cash etc. It all depends on your personal needs and whether you choose one or the other just try to stick with the criteria.
Learn The Local Laws
It is very important to know all the local laws since the lack of knowledge can cost you plenty of money. Every state has their own set of rules that can significantly differ from the ones in other states. You should check all the documentation needed to rent a property.
Some states would require a renter’s license while others consider water a tax instead of a utility etc. You can get all the info and help from a property manager who’ll guide you through the local laws.
Build Your Team
With New Street , you’ll be able to build your team of professionals to help you with out of state real estate investment. Thanks to their knowledge and skill, you’ll be guided along the whole process and their valued opinion will help you make the best decision based on your needs.
Make sure you find a good mortgage broker and a property manager. A broker can close a loan for you and save you a ton of time and effort. Try to find investor friendly agents as well, since they can connect you to other professionals who can help you along your real estate journey.
Schedule Your Time & Prioritize Next Actions
It’s always good to be organized and prepared for every step that follows in the process. Start by scheduling your time and figuring out when you’ll be available for different types of tasks that are included in the process.
Avoid becoming overwhelmed with all the steps and details that need your attention by strictly having your time blocked so that nothing is missed. You can use a calendar and a sharpie to mark the time and day in the week that you’d be able to dedicate to real estate work.
Check the calendar daily and try to ensure that nothing intervenes with your real estate investing business.