3 Myths About Remote Real Estate Investing
As I’ve mentioned in previous posts, remote real estate investing has come a long way, thanks to technology. Before the internet and apps and FaceTime and all that fun stuff, investors were taking on a pretty big risk if they chose to buy rental property outside their local market.
Today…not so much. But even with technological advancements, there are still plenty of naysayers who are busy perpetuating negative myths about remote investing. Let’s dispel a few of those right now!
Myth #1 – It’s Too Risky
The #1 myth that people have remote real estate investing is that it’s too risky. Of course, this is a holdover from the days of yore, when remote investing was only done by the very rich or the very (seemingly) crazy. As I mentioned, though, all this has changed in the last decade or so. Many of the risks commonly associated with remote properties simply vanished with the advent of technologies like Google Street View and Task Rabbit. Today, you can do everything from screen clients via videochat to get a mortgage through an app on your phone – even if the property in question is hundreds of miles away! In the past, buying property without ever stepping foot inside it seemed completely crazy and far too risky. Now? Not so much.
Myth #2 – You Need to be Nearby In Case of Emergencies
Another commonly held belief is that you need to be close, geographically-speaking, to your rental property in the event of an emergency. The truth is, you don’t. That’s why property management companies exist! When you contract with a management company, they are making a promise to you that they will handle those emergencies, as well as all the other jobs you’re no on-site to deal with. They will be on-call, day and night, to deal with complaints, repairs, and virtually anything that is going on with your property and tenants. The key is in finding a great management team to work with, who you know will keep that promise. But with a bit of research, you can find an experienced property manager to handle the day-to-day tasks associated with your property – emergencies included.
Myth #3 – Property Management is Too Expensive
Myth #2 brings me to the next one on the list, that property management is “too expensive.” To that I say, how much is your time worth? Also, no, it’s not expensive. Think about it like this. You can invest in a property and pay someone a reasonable fee to run the place, or you can take on the monumental task yourself and wind up with very little, if any, money saved because you don’t really know what you’re doing. I’m just being honest here. Are you an experienced handyman? Do you frequently work with contractors? Do you know how to develop effective marketing strategies? Can you streamline the rent collection process? Do you have an in-depth understanding of eviction laws? The answer for most people is “nope, not really.” And besides, I’ll say it again: how much is your time worth? When you think about the amount of work and time involved with property management, that cost doesn’t seem like so much, now does it?
Guys, remote investing may have a lot of myths associated with it, but that’s all they are – myths. There are literally thousands of investors out there who buy properties far away from home, and when they make smart choices, they’re successful! You can be too, especially if you choose to work with a reputable turnkey company who can advise and assist you from start to finish of the investment process.