Comments on: When real estate advice is stale or just wrong http://johncorey.wordpress.com/2007/04/01/when-real-estate-advice-is-stale-or-just-wrong/ Practical real estate advice from the trenches. Thu, 30 Aug 2007 14:59:26 +0000 http://wordpress.com/ hourly 1 By: Al Young http://johncorey.wordpress.com/2007/04/01/when-real-estate-advice-is-stale-or-just-wrong/#comment-36 Al Young Mon, 02 Apr 2007 18:04:35 +0000 http://johncorey.wordpress.com/2007/04/01/when-real-estate-advice-is-stale-or-just-wrong/#comment-36 <blockquote>I would be interested in how you manage to handle investments up to 11 time zones away. Besides the distance, I imagine there are other obstacles to investing outside of the US.</blockquote> When investing in property you can divide the world into two slices. That which is '<strong>local</strong>' and which you can likely directly handle or visit <strong>vs</strong>. that while is <strong>remote</strong>. When I invest remotely I tend to focus on areas that I have an interest in, have traveled to, expect to travel to or otherwise <strong>a place that is worth learning about</strong>. Maybe a place where you can vacation, a place where you like to visit for work, a place that just has great values so you will make a <strong>commitment to visit purely for the profit potential.</strong> <strong>Investing at a distance is best done by focusing on deals that are not time intensive. </strong>At least not time intensive with you pounding the pavement in the local area. Buying off-plan (pre-construction), buying condos or other properties where much of the maintenance is packaged up, buying real estate notes are all possibilities. What will not work so well is using bandit signs and then expecting to pound nails doing refurbishment work locally. You can use direct mail and wholesale remotely but you can not door knock. Learning the local market includes learning how people do business in the local market. If you cross a state or national boarder you need to learn what is different. You can get burned by <strong>what you do not know you do not know</strong>. Start slow. Do 1 deal and expect it will not be that cost effective initially. Be committed to doing more deals unless you discover there are real problems with the market that you did not see prior. What I like about dealing with distance is I can focus on deals that makes sense in the short and long term. I do not have to compromise and do so-so deals just because there is nothing good in the local market. If you can not find property that will cash flow locally you do not have to buy into the mindset that negative cash flow if OK. You just change your market focus. Enough as a reply. I can create a new topic if there is continued demand. Send me email if I do not post a fresh topic on <strong>dealing with distance.</strong>

I would be interested in how you manage to handle investments up to 11 time zones away. Besides the distance, I imagine there are other obstacles to investing outside of the US.

When investing in property you can divide the world into two slices. That which is ‘local‘ and which you can likely directly handle or visit vs. that while is remote.

When I invest remotely I tend to focus on areas that I have an interest in, have traveled to, expect to travel to or otherwise a place that is worth learning about. Maybe a place where you can vacation, a place where you like to visit for work, a place that just has great values so you will make a commitment to visit purely for the profit potential.

Investing at a distance is best done by focusing on deals that are not time intensive. At least not time intensive with you pounding the pavement in the local area. Buying off-plan (pre-construction), buying condos or other properties where much of the maintenance is packaged up, buying real estate notes are all possibilities. What will not work so well is using bandit signs and then expecting to pound nails doing refurbishment work locally. You can use direct mail and wholesale remotely but you can not door knock.

Learning the local market includes learning how people do business in the local market. If you cross a state or national boarder you need to learn what is different. You can get burned by what you do not know you do not know. Start slow. Do 1 deal and expect it will not be that cost effective initially. Be committed to doing more deals unless you discover there are real problems with the market that you did not see prior.

What I like about dealing with distance is I can focus on deals that makes sense in the short and long term. I do not have to compromise and do so-so deals just because there is nothing good in the local market. If you can not find property that will cash flow locally you do not have to buy into the mindset that negative cash flow if OK. You just change your market focus.

Enough as a reply. I can create a new topic if there is continued demand. Send me email if I do not post a fresh topic on dealing with distance.

]]> By: portlandflips http://johncorey.wordpress.com/2007/04/01/when-real-estate-advice-is-stale-or-just-wrong/#comment-35 portlandflips Sun, 01 Apr 2007 17:48:41 +0000 http://johncorey.wordpress.com/2007/04/01/when-real-estate-advice-is-stale-or-just-wrong/#comment-35 I would also add that a sound stratagy for investing in Real Estate is to develop a relationship with a Real Estate Broker. Example : My real estate business strategy as a Broker is to create relationships with Investors. I never look at the ONE SHOT DEAL. I always look at creating wealth for my investors. I they are not making money why would they want to use me again ? It is much easier from my view point to establish a good working relationship and then nurture that relationship. So much easier when one knows the others likes and dislikes. I would also add that a sound stratagy for investing in Real Estate is to develop a relationship with a Real Estate Broker. Example : My real estate business strategy as a Broker is to create relationships with Investors. I never look at the ONE SHOT DEAL. I always look at creating wealth for my investors. I they are not making money why would they want to use me again ? It is much easier from my view point to establish a good working relationship and then nurture that relationship. So much easier when one knows the others likes and dislikes.

]]> By: outsider222 http://johncorey.wordpress.com/2007/04/01/when-real-estate-advice-is-stale-or-just-wrong/#comment-34 outsider222 Sun, 01 Apr 2007 13:06:20 +0000 http://johncorey.wordpress.com/2007/04/01/when-real-estate-advice-is-stale-or-just-wrong/#comment-34 Actually, long distance research might just not be as reliable as one might hope. Sometimes, in order to find out what's really going on in a remote location, you might have to find out first hand. Hype is cheap. Actually, long distance research might just not be as reliable as one might hope. Sometimes, in order to find out what’s really going on in a remote location, you might have to find out first hand.

Hype is cheap.

]]>