6 Tips for People Looking to Remote Real Estate Investing

6 Tips for Remote Real Estate Investing

• 1. Do your research

  Value investors like Warren Buffett conduct extensive research before they choose to invest in a company. This is even more important when it comes to remote real estate investments, seeing as they might involve substantial financial commitments.

  Start with a broad perspective. Assess the economic conditions and sales data for your target countries and markets. Does the location have a growing population and good employment opportunities? Are prices nearing a peak or climbing from the bottom? What is the average rental yield in the area?

  Once you have identified promising markets, establish connections with local individuals. A local and trustworthy real estate agent is an invaluable source of intel. They can help you understand the niches and trends within your target market and inform you of the best opportunities. They can also put you in touch with a network of reliable maintenance companies and other local professionals.

  A good way to find a trustworthy real estate agent is to network with other real estate investors. Join a relevant Facebook group, go to real estate conferences, or ask your friends and family. Find someone else who has already successfully invested in your target market and ask them to recommend a real estate agent.

  Once you’ve narrowed down your options, a personal visit to the prospective properties can definitely help you make your final decision. Although travel expenses may be significant, the information acquired allowing you to avoid a poor investment could save you tens of thousands of francs in the long run. Therefore, the expenses incurred for travel tend to be worth it.

  Alternatively, you can choose to invest in real estate through a crowdfunding platform or similar mechanism that aligns with your target market and niche. This will allow you to circumvent the need for exhaustive research on specific properties and eliminates the necessity of visiting each property individually.

• 2. Take advantage of technology

  The advent of the internet a long time ago has made it significantly easier to manage a remote real estate investment. Various communication tools, such as video and messaging apps, enable seamless interactions with key stakeholders such as real estate agents, property managers, and maintenance companies.

  There are also numerous apps that can help you manage the renting aspect (Airbnb, Rentberry, and Vrbo) and maintenance of your properties (Buildium and DoorLoop).

  For financial management, dedicated applications such as Landlord Vision and Stessa offer comprehensive tools to handle the financial aspects of property ownership.

  To enhance security and oversight, you can also install web cameras at property entrances or doors, enabling remote monitoring of maintenance personnel and short-term tenants. Noise monitors have also gained popularity for short-term rentals. That said, make sure you ensure compliance with local laws and regulations before installing such devices.

• 3. Build a network of local professionals

  In addition to having a trustworthy real estate agent, it’s wise to build up a network of local professionals who can assist you with the needs of your property when required. This includes more than just repairs and maintenance. Make sure to also have people on hand for banking, legal, and accounting matters.

• 4. Know your strategy

  Your investment strategy should play a pivotal role in determining the market and property you choose. It should also influence your financing decisions.

  If your strategy involves property flipping, you will need to look for high-growth locations with a significant number of potential buyers and properties that can rapidly increase in value through strategic renovations. In terms of financing, it would mean exploring options such as loans with interest-free periods or flexible payment plans to facilitate your short-term investment goals.

  A good short-term rental is usually located in a high-traffic location. Seek out popular tourist or business destinations that command a premium for short-term stays. However, always look into local regulations on short-term rentals as some popular cities are now placing limits on such arrangements.

  In contrast, long-term rental properties follow a distinct set of considerations. They provide you with more flexibility in terms of location, as proximity to city centers or public transportation may not be as critical. Moreover, furnishing the property or providing a fully equipped kitchen might not be necessary. Instead, focus on features like a larger floor plan, ample storage space, and available parking options, as these factors often hold more significance for long-term tenants.

• 5. Look for multiple income streams

  While many investors typically focus solely on rental income as their primary revenue stream, it is worth exploring properties that offer the potential for multiple income streams. One option to consider is purchasing a mixed residential and commercial property. You can also search for a property that is big enough to cater to corporate getaways and conferences. More than one income stream not only means more money but also provides diversification.

• 6. Take advantage of innovative approaches to real estate

  Investing directly in a property through personal ownership is the most conventional approach for most individuals to enter real estate investment. Getting a loan and buying a property in our name gives us the maximum level of control over the property. However, it also typically involves significant upfront costs and debt, limiting access to various advantages associated with alternative investment approaches.

  Investing in a real estate crowdfunding platform is similar to investing with partners, except that you will likely benefit from being part of a much bigger pool of capital. This provides a stronger bargaining position when buying properties and will allow for greater diversification because of the ability to invest in a greater range of properties at once.

  Another option is setting up a limited liability company (a real estate business) and investing with partners which additionally reduces your required outlay. This arrangement can reduce individual financial burdens while offering the opportunity to benefit from the collective experience and expertise of the partners. Extra pairs of eyes also help with the monitoring of a property. However, the question remains: where do you find such partners?