How to Buy Rental Property Sight-Unseen
It sounds scary, right? Committing to something as significant as a real estate purchase — often with a large mortgage — and you have never even seen the property. Yet busy professionals who don’t have time to jet around the country looking at potential investment properties do it all the time. Why? Because their local real estate market may not be booming … but that doesn’t preclude them from profiting from a market that is.
Look … seeing is believing, but it’s not always possible, and incredibly, 20 years ago no-one would even think of buying a house without seeing it, but we live in a virtually abundant world now. So if you’re considering buying a rental property sight-unseen, here’s a quick guide on how to do it right.
“What if they’re selling me property that doesn’t exist?”
This question comes up a lot, and it’s honestly not an issue at all. Even if you don’t get on a plane to inspect the property yourself, it’s almost impossible to close a transaction on a property that doesn’t actually exist. Multiple people will be able to attest to the fact that there is, in fact, a house on the property in question and to the condition of that house.
There’s the appraiser and other people who report to the lending company about the collateral they are lending against. There’s the home inspector you may hire for the physical due diligence. The insurance agent won’t be able to track down the house for their purposes, and finally it will raise some serious red flags in the title work, if the house doesn’t actually exist. It is actually more likely that the house does exist, but there’s a flaw in the title or the seller is not the actual owner. It’s something that can happen even if you’re buying a house next door to where you live. At MartelTurnkey we make sure you have a clear and free title before you close.
Bottom line — don’t worry too much about signing for a house only to discover you are actually getting a burnout or an empty plot of land. There are several professionals confirming the property is-what-it-is along the path.
Build a Local Team
Real estate investing is a team effort, whether you buy down the street or in another state. The key to successfully buying real estate sight-unseen is to have a team on the ground along with a trusted turnkey partner.
Your team could consist of:
Realtor or wholesaler.
Local realtors and real estate wholesalers can be valuable “boots on the ground,” especially if they want a crack at selling the property at the end of the investment cycle.
Contractors and handymen.
You need these guys in place for the inevitable repair tickets your tenant will file. They can also be your “eyes and ears,” giving you checkups on the condition of your property after closing. Of course when you work with a property manager, they have a Rolodex of professionals and often an internal team too.
You don’t have to hire a professional property management company, but doing so can go a long way to making an out-of-state rental property a truly “passive” investment. All MartelTurnkey properties come with a property management team in place. Read more about this here.
Having a local team makes particularly good sense if you plan to buy multiple deals in the city, building an out-of-state turnkey empire.
Being an “out-of-state” landlord is not as difficult as it sounds. MartelTurnkey makes it even easier by providing out-of-state investors with already-tenanted deals to purchase at competitive prices with a property manager in place. No renovation, no rehab, no long vacancies to weather — just close the deal and start collecting rent, all from the comfort of your own home! Financial freedom can be yours.