Investing in New York is always a great option, even if you live out of state! Even if you don’t ever see the property in person, you can still find yourself a great deal! Learn more about how it works in our latest post!
As an investor, you likely began your career by purchasing properties in the neighborhood where you live. As you become more and more knowledgable about the process, you will be able to begin looking at properties that aren’t in your city, it your county, or even in your state! Broadening your geographical boundaries will increase the number of deals you will be able to find, thus increasing your overall profit potential.
One of the most time-consuming parts of the process will be finding the right properties. You can look on the MLS, but you will likely overpay. You can source properties on your own by searching FSBO advertisements. You can even use google maps to find recent photos of disheveled properties. A telltale sign that the seller may be motivated to get rid of their property.
The Right Team
When investing in New York real estate when you live out of state, you’ll need to make sure you have a strong team of people supporting you. They need to be people with whom you have great trust and rapport. They should operate with your best interest in mind, knowing that in doing so, they are building a win-win relationship. A few of the people you will want on your team include:
An agent – While you may not use them on every sale, having an agent who you can rely on will never hurt. Agents understand the business, what you are trying to accomplish, and what the market is doing.
A professional seller – Working with a professional buyer and seller will allow you to find the best off-market properties. Working with a professional seller will help you find the kinds of deals most people only hear about. Sell Now Realty Group buys and sells properties directly
A property inspector – Having an informed and educated inspector on your team is a must. You will have to trust them to find defects in the property.
A title professional – While title companies all do similar things, not all of them work in the same manner. Some title companies are able to process the property information quickly, while others take a bit longer. You’ll want to have a title company at your disposal who you trust, who can process transactions quickly, and who will provide you with accurate information about the property.
A construction expert – A local contractor can provide you with estimates and their opinion of the property. Having someone you trust, who you work with repeatedly, will help you get some peace of mind when figuring out how much work will need to go into the property to make it profitable.
A property manager – When you live out of state, you will need to have a local person or company manage the property on your behalf. A high-quality manager is worth their weight in gold. They will be able to help you market the property, screen tenants, run background checks, collect rent, manage repairs, and help any vendors who need access to the property. Having a team who you know and trust will let you take your mind off things, essentially collecting an almost completely passive income from the property.
A local representative – If you can’t be there yourself, you can choose to hire someone to act on your behalf. They can let you know what a property is really like, what is happening in the neighborhood, and what they see wrong with the property. While other people involved in the transaction can provide you with their opinion of the property, hiring someone who is completely objective, without any personal interest in the transaction, will help you get a better idea of what the house is like.
Making An Offer
Making an offer on an out of state property is just like making an offer on a local property. If you are using an agent, they will assist with the process. If you are buying directly on your own, you will need to prepare and submit the offer yourself. If you work with a professional property buyer and seller, you’ll be able to browse an inventory, buy for a low price, and be assured the property you are buying is of high-quality.
The Closing Process
Nowadays, remote closings are commonplace. No matter where you’re located, as long as you can access a computer, you will be able to access, sign, and send back the documents that need to be completed. Some things may need to be notarized, and other things mailed, but it is completely possible to close on a property when you aren’t even in the same state.