{"id":931,"date":"2007-01-23T06:51:24","date_gmt":"2007-01-23T13:51:24","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=931"},"modified":"2007-01-29T06:44:39","modified_gmt":"2007-01-29T13:44:39","slug":"out-of-state-investing-all-sizzle-no-steak","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/931\/out-of-state-investing-all-sizzle-no-steak\/","title":{"rendered":"Out of State Investing: All Sizzle, no Steak"},"content":{"rendered":"

As I prepare to go down to Greensboro this Thursday to make my first out of state investment, I thought I should talk briefly about what it takes to do out of market investing. Based on my experience too many people jump into a real estate market because it is hot and not because they have in-depth market knowledge or ties to that area. Real estate will always be a relationship business. Going into a market where you have no relationships and minimal knowledge is like playing the lottery. Some times you win, but most times you lose.<\/p>\n

Here is a brief example from my past. Living in Detroit, my wife and I bought our first investment property about 15 minutes away from our home. Having developed a few good relationships, we were able to get a lot of work done on the property at a discount and we were able to sell quickly because we had a great agent. Eventually we sold this house to an investor in San Francisco, who was looking for a low risk investment. On the outside, this seemed like a great opportunity for her because the tenants showed consistent on time rent payments and the monthly repairs were minimal.<\/p>\n

Here is the catch though. Many of those things happened because we were local and had great relationships. My wife personally drove by the tenants home to collect the rent. Additionally, she built such a great rapport with the tenants they would pay us instead of paying their other bills. Many of the repairs were done by a local contracting crew we had working on other properties, so we were able to get things done fairly cheap and quick. Most importantly, however, were the battles we had with the Detroit Water Company (grrr!). Being local we were able to go down there in person about once a week for two months to get everything straightened out.<\/p>\n

While I knew this would be a very tough property to run from out of state, a sale was a sale. Unlike most sellers, we actually disclosed most of this during the sales Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

As I prepare to go down to Greensboro this Thursday to make my first out of state investment, I thought I should talk briefly about what it takes to do out of market investing. Based on my experience too many people jump into a real estate market because it is hot and not because they […]<\/p>\n","protected":false},"author":16,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,5],"tags":[],"class_list":{"0":"post-931","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-investment","7":"category-real-estate","9":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":1685,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1685\/real-estate-investing-vs-stock-market-investing-is-there-a-clear-winner\/","url_meta":{"origin":931,"position":0},"title":"Real Estate Investing vs. Stock Market Investing- Is there a Clear Winner?","author":"Cooksquared","date":"July 23, 2007","format":false,"excerpt":"Real estate enthusiasts have been sounding their trumpet during the latest run in the real estate market. Many real estate focused investors truly believe real estate outperforms every other investment by a wide margin and even go as far as to wonder why investors would choose any other investment vehicle.\u2026","rel":"","context":"In "General"","block_context":{"text":"General","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/general\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":13288,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/13288\/real-estate-investment-tips\/","url_meta":{"origin":931,"position":1},"title":"Real Estate Investment Tips","author":"Tony Sena","date":"September 20, 2010","format":false,"excerpt":"Finding a \u201cbargain\u201d property to purchase for rental purposes takes some analytical skills, market knowledge, and a real estate agent who is in sync with your investment goals. Some investors would consider the ideal rental property to be a three- bedroom, two-bath house in good repair, or needing minor touch-ups\u2026","rel":"","context":"In "Investment"","block_context":{"text":"Investment","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/investment\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1376,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1376\/real-estate-investing-for-retirement-the-human-factor\/","url_meta":{"origin":931,"position":2},"title":"Real Estate Investing For Retirement — The Human Factor","author":"Jeff Brown","date":"May 2, 2007","format":false,"excerpt":"In the real estate investment side of the biz, everyone wants to talk endlessly about where to invest, how to invest, the best way to analyze the various investment factors, what needs analysis, and the rest. However, the most common factor left out of the process is the human factor.\u2026","rel":"","context":"In "Investment"","block_context":{"text":"Investment","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/investment\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":16834,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/16834\/vacation-rental-investing-perdido-key-fl-purple-parrot\/","url_meta":{"origin":931,"position":3},"title":"Vacation Rental Investing: Perdido Key, FL– Purple Parrot","author":"Brian Brady","date":"September 2, 2020","format":false,"excerpt":"How about a vacation property, on Perdido Key, Pensacola, Florida, which cash-flows with just 25% down payment? This Realtor-listed property sold for $238,000 in November of 2019 and this FSBO sold for $242,500, two weeks ago.\u00a0 Both properties are 2 BR 2.5 bath bungalows and are in the Purple Parrot\u2026","rel":"","context":"In "Investment"","block_context":{"text":"Investment","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/investment\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-content\/uploads\/2020\/09\/purple-parrot.jpg?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":1564,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1564\/the-real-risk-in-real-estate-flipping\/","url_meta":{"origin":931,"position":4},"title":"The Real Risk in Real Estate Flipping","author":"Cooksquared","date":"June 22, 2007","format":false,"excerpt":"New investors rarely stop to address the subject of risk tolerance. 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There are huge tax benefits accruing from owning real property, either as\u2026","rel":"","context":"In "Marketing"","block_context":{"text":"Marketing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/marketing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/931","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/16"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=931"}],"version-history":[{"count":0,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/931\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=931"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=931"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=931"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}