In today’s blog, we will discuss the pros and cons of purchasing properties online. There are many sales opportunities online, and real estate is one of them. The popularity of online real estate and buying a property remotely is growing. Clients can now complete signings and contracts remotely, and a great resource of research information is free to access online. The research analysis is critical to undertake if you are thinking of purchasing a property remotely. I have put together a presentation on my Youtube Channel so you can look at what is involved with a remote sale. I would encourage anybody to purchase property online as it’s a safe and secure process, but there are a few things that you should be aware of.
The most crucial factor is that you employ a trusted agent or friend on the ground in the area where you want to buy in. You cannot rely on photos to be accurate as they can be out of date and do not reflect the complete picture. While the property photos may look good, what does the neighborhood look like? Are there boarded-up houses surrounding it, or is it near an industrial area or factory that causes bad smells or pollution? Don’t forget a seller will always want to show you the positives, not the negatives, so it is essential to have a person you can trust on the ground so they can go and inspect the property and neighborhood for any potential problems. I have learnt that you should buy the ugliest house in a good area rather than a pretty one in the wrong location as you can always fix up the ugly one. Never trust pictures, they are a good reference, but you need to see their contents in real life to ensure they are current, up to date and accurate.
Remote investing is a simple real estate strategy that allows you to invest in struggling markets across the US. This means you own income properties within those markets and work with a partner or partners to oversee all property management. There are so many things that you can do online now, also over the phone. So, use those skills as much as possible and combine them with someone you rely on. My partner primarily relied on acquiring data and sifting through the options list. Even though we always had a list that we could do remotely, we always visited the property. In real life, what looked good on paper didn’t always turn out that good. One tip I would suggest is to hire a home inspector who can provide a detailed report on the property and what repairs are required. If you are unfamiliar with the area, I would suggest you get an agent or trusted partner to drive by the property to get a real-time view and feel for it.
Below I have outlined some pros and cons of remote investing.
Pros
● A more comprehensive range of opportunities.
● No Geographical restrictions.
● Potentially increased returns due to access to different state markets.
● Better affordability
● Higher Yields
● Reduced competition
● Lower property taxes.
● Portfolio Diversity
● Minimize Risk
● Less emotional connection.
Cons
● Time-consuming research.
● Devolving personal information to others.
● Risk of overlooking potential problems.
● Securing a professional property manager.
● Not knowing the local market,
● No experience with local economy, laws and trends.
● Handing over control.
● Less hands-on involvement.
No matter where or what you invest in, there are several things to keep in mind before you buy real estate remotely to ensure your business starts and keeps growing strong. So, the best thing you can do is follow the steps we have discussed in this episode; make sure that you pick the market that will be best suited for your own circumstances, I help my clients go thru it with a specific check list that narrows down the choices and minimizes the risk and then just go through it. And then start looking for people that you can partner with if there is something that you want to do remotely. I hope this information helps you and if you need any more help, please have no hesitation in contacting me. Until next time, invest wisely.
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