New Territories

With each New Year comes new ventures. More and more often investors have to expand their investment territories in order to stay active. As technology continues to make the world a smaller place many investors are also looking at investing in different states and some in different countries. By doing this the amount of inventory increases dramatically if you make the right contacts. At the same time if you work with investors that are open in investing out of state or in different countries you have the ability to sell more.

With all this said it is not always as easy as it may sound whether you are the buyer or seller. As the buyer you need to make a trip to the new area you are looking to invest in. The reason to do this is obviously to learn the market but secondly to make a few key contacts in the area. The main contacts you need to make are a few wholesalers, real estate agents, contractors, a title company, and property management if you are looking for rentals. Not only will these contacts help you in their area of specialty but they can also be go-to people for a second opinion on any potential deals. In order for this to be a win-win situation you want to use these contacts’ services. For example, if you ask a contractor to verify repair cost on a home you should use him/her for that project.

The suggestions mentioned above also apply to those looking to sell properties outside their local area of expertise. If you are teaming up with a local in a new area make sure you are working with someone that can answer questions experienced investors will need answered.  Keep in mind that just because someone tells you a property is a good deal to invest in does not mean it is. You may be marketing a property that you would normally not market. Even worse, you may end up selling a property that you would not have sold if you knew the market better. Investors will typically follow you into another state/country if you have been part of their success in their local market. Investors should do their own due diligence but you should do your own before even marketing that deal otherwise you will lose credibility. You may not only lose credibility in the new market but also in your local market. You can also lose money that you have out for a due diligence period and/or earnest money if you discover that you contracted a dud. Remember the importance of closing once you have a contract in place.

Before venturing into a new market make sure you at least make the contacts mentioned above. Let them know your intentions of investing and/or selling in their area soon but are currently familiarizing yourself with the market. This will prevent them from thinking of you as just another window shopper. Remember that if you create a win-win-win situation your success will continue to grow.