7 Tips for Long-Distance Investing

With low interest rates and the work-from-home boom, the demand for housing has surged in many areas across the country.  Investing in areas where demand is growing is a great idea, and is entirely possible to do long-distance.

Here are some tips to consider when thinking about long-distance investing:

 

  1. Find a local Real Estate Agent - Having a dependable and knowledgeable agent in the market where you’ll be investing long-distance gives you important boots on the ground.  A great way to find a strong agent is to seek an agent that has their own team, as this suggests they have been successful enough to scale and grow their business.  They have likely built strong relationships with quality property managers, general contractors, and photographers in the community and will know who to send out to find, prepare, and maintain your investment properties. A strong agent will also be able to give you insight on the biggest housing expenses in the area you’re investing in.

  2. Find Out What Property Taxes You’ll Be Paying - You’re likely familiar with property taxes in your own market, but don’t overlook this simple step when browsing long-distance markets!

  3. Get and Idea of Homeowner’s Insurance Rates - Same as tip #2: You probably have a good idea of homeowner’s insurance rates and benefits in your local market, but there could be significant differences between what you’re used to and what homeowner’s insurance rates look like in the long-distance markets you’re considering.  Take a few moments to get familiar with homeowner’s insurance rates as you’re doing your research.

  4. Research Neighborhood Desirability - Get more granular than just the overarching location and look at the walk scores of different neighborhoods.  If you’ll be renting a property out and/or buying to hold and sell a few years from now, desirability is foundational to the underlying demand of housing in one neighborhood vs. the next.

  5. Calculate Rent - Use a tool like rentometer.com to get a rough idea of monthly rental income for specific properties. Then, head over to Craigslist.com, apartments.com, or Facebook Marketplace>Rentals to get a big-picture view of what rentals are going for, and what availability looks like.
    The goal here is two-fold: To establish a bottom line for what renters in the area will pay for what you’re offering; and to establish a ceiling - knowing the most people are paying to live in a neighborhood will help you set a budget for repairs and upgrades that makes sense for rentability. This range is crucial in determining if the purchase price + estimated repair costs make sense.

  6. Get an Idea of Vacancy Periods - Bookmark a few properties as you’re searching for answers in step #5. Check them periodically to see if they are still available; if units are going quickly, demand is high and that’s a good sign you won’t have to deal with long vacancy periods if your rent price is set properly. Low vacancy periods can also indicate high neighborhood desirability.

  7. Consider the Long-Term Price-to-Rent Ratio.  This is where the 1-percent rule comes into play: If a property can generate 1% of the purchase price in rent each month, the price-to-rent ratio is strong and indicates a high likelihood of profitability and positive cash-flow. Consider your overall cost to purchase the house (purchase price, financing fees, interest, etc..), repair costs before renting, ongoing maintenance costs, and tax and insurance payments when estimating your cash flow.   Will this cash-flow hedge against unfavorable marketing conditions? Do trends in market conditions suggest the value of the property will go up with the market? If the answer to both questions is yes, you’re likely looking at a great long-term investment opportunity: positive monthly cash-flow and a chance to make a profit by selling down the road.

Investing does not require your physical presence - it simply requires due diligence and a willingness to work with the right partners in the target market.  If you’re willing to dot your i’s and cross your t’s, long-distance investing is a great way to build your property portfolio and grow wealth strategically. 



Probates often involve Property Distress and Owner Distress, two factors that can help you buy investment properties below market value.  What would Probate Leads in Another Market Cost?

How to Go on Listing Appointments

Tips for Winning Face-To-Face Appointments – From Start to Finish! Probate Real Estate Training Top Plays

How to Walk Out of Face-To-Face Appointments With PAPERWORK SIGNED – Whether You’re An Agent, Investor, or Wholesaler.

Have you ever wondered what to say when a seller tells you they’re planning to work with another agent (That they’ve known for years… That they HAVE to use)?
(If you missed our prospecting quick tip yesterday on landing a face-to-face appointment when a seller already has another agent in mind, check it out here)

In this highlight, Chad Corbett and David Pannell discuss how you can go into any face-to-face appointment and win it, all while using your competition to set yourself apartMuch like the Tortoise and the Hare, the first to blast off from the starting line isn’t necessarily the one with the strongest finish.

 

Nuggets in this Video:

  1. Leave your Agent, Investor, or Wholesaler Hat at the door – How to offer more than one option.
  2. The Good-Cop/Bad-Cop Approach – Get sellers to self-select a Cash Offer, As Is, or Retail Price.
  3. How to present prices in a way that builds trust and motivation.
  4. ALWAYS bring pre-filled paperwork and leave an offer in hand.
  5. Get the signature without even asking.

Check it out!

 

What’s the Water Bottle Trick

 

 

SEE ALSO:
Creative Financing – Don’t stop at a cash offer! Here are 5 Ways to Access Equity for Improvements!

 

This highlight is from David Pannell’s Probate Leads Case Study, which you can catch in full here.

 

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Connect with Chad Corbett: https://www.linkedin.com/in/chad-corbett/

Interested in Affiliate Partnership/Collaboration? www.alltheleads.com/affiliates or email katt@alltheleads.com

 


Probate Leads/Automated Marketing for agents, investors, and wholesalers: Check For Leads In Your County! (954-400-3500)

 

 

 

 

3 EASY Ways to Improve your Cold-Calling Script – Live Cold Call Role Play Breakdown and Critique

Most LUCRATIVE Real Estate Niches: PROBATE Wholesaling, Investing, and Listings – David Pannell’s Story | All The Leads Reviews

Vlog: How to BUILD MOTIVATION behind Cash Offers and As-Is Prices by Pairing Real Estate Math and Empathy

David Pannell’s #1 Secret In Real Estate: The Water Bottle Trick.

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The Do-Or-Die Rule When Meeting Face-to-Face with Motivated Sellers.

You'll probably never hear me say this again, but in this SHORT, ONE-MINUTE (😅😁) Video, David Pannell and Chad Corbett share a golden nugget of wisdom for sealing the deal during face-to-face appointments with sellers.

(Alternatively, you can catch David's full success story here, complete with timestamps and dozens of additional best-practice nuggets: https://youtu.be/twb5PrpXcRk)


David is projected (conservatively) to be making $1,000,000 a year by the end of 2019 through listings and acquisitions from PROBATE DEALS ALONE.

Tenure: 1 year (Since June 2018)
Probate Closings To Date: 27
Total Commissions: $370k; $1,000,000 projected by close of Q4 2019.
Pipeline: 75+
ROI: 196% since starting; pacing 634% ROI for 2019.

 

WATCH THE FULL VIDEO HERE

Or select a time-stamp to jump to a specific segment:

5:30 First time calling Probate Leads
6:05 2018 Totals from all lead types
7:37 My First Year in Probate
8:56 Pipeline for 2019
9:26 What’s the split between broker/acquisitions deals?
9:50 Does this work in a competitive market?
10:20 What’s the spread?
10:45 Changing the way you present yourself
12:18 The fortune is in the follow-up
13:07 Getting the Cold-Calling right: Going from “Realtor, Investor” to David
13:40 Showing up to your listing appointments as a professional
15:11 The mindset: Go out and get it!
16:13 Competition from iBuyers and how to get ahead
22:08 The All The Leads Approach - Make it work for you
24:04 Why probate is great
24:47 Winning a listing appointmentwhen another realtor is there
27:40 What do we do with leads that don’t answer the phone?
30:45 One appointment, two guys, three options.
33:25 Bring pre-filled documents, leave a cash offer in hand.... ALWAYS!
37:12 The bottled water secret
38:30 How we found the right ISAs and built up our team
41:25 The perfect ISA for probate leads
48:43 Empathy = Lifelong referrals from clients and other business professionals
51:15 David’s system
59:57 The Numbers
01:03:23 The Million Dollar Pillar

 


About David:  David has been in real estate for 12 years.  He worked with buyers through the short sale/REO period between 2007-2010, switching to listings in 2011. He has also since ramped up his acquisitions.  Like many, he started with open houses and SOI leads. He eventually hired a coach and quickly mastered Expireds/FSBO marketing. He now works directly with ATL, GGMS, and B-School to learn and scale his business. He is focused on solidifying 3 major pillars in 2019, one of which is probate real estate.  In mastering the empathetic approach, the team is looking forward to a third of their projected 300 closings in 2020, to come from probate listings/cash deals alone.


David Pannell on YouTube
Get in touch with David


If you are a real estate agent or real estate investor looking for real estate leads and you want to offer a service to your community then you really need to consider becoming a probate expert. Over the next 40 years over $136 Trillion in assets will pass from one generation to the next and nearly 80% of that wealth is locked up in real estate. This is an opportunity for you to build a strong pillar in your business while your competition is still out begging for business from the same leads they’ve worked for the past 20 years. All The Leads provides a system driven by ever-expanding knowledge and experience. To see how many leads we gather in your county each month, click here.

 

Connect with David and others in the All The Leads Mastermind Facebook Group!

Preview for All The Leads Podcast: Tips From The Trainer with Probate Real Estate Coach Chad Corbett

5 Ways to Access Equity for Improvements When Traditional Financing Isn’t An Option

How Can I Finance Repairs to Get the Most Out of A Listing (Probate or not!) When the Owner Has Equity, But No Liquidity?

In our latest from our Tips From The Trainer vlog series, Chad discusses 5 Ways Real Estate Agents, Investors, and Wholesalers can access and leverage equity to make improvements on a home.

Today’s video was inspired by a question from Susan B. in California. Susan has an opportunity with a home owned by a 92-year old widow with a fixed income in Palm Springs.  She wants to be able to access 75k in equity to fix the property because she knows she can make that another 150k through construction. The owner has equity but no liquidity, so most lenders don’t want to work with her. What are the best options?  Watch below!

 

 

Thanks for watching! Let us know some of your favorite creative financing strategies by dropping a comment below!

 

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MORE MARKETING TIPS AND TRICKS:

 

 

Should You Leave Voicemails When Cold-Calling Leads? What to Say and How Often? | Tips From The Trainer | Probate Leads Training for Real Estate Agents, Investors, and Wholesalers.

Unexpected Places to Find More Listings and Deals – Medicaid and Social Workers | Probate Leads Training Highlights for Agents, Investors, and Wholesalers

Vlog: How to BUILD MOTIVATION behind Cash Offers and As-Is Prices by Pairing Real Estate Math and Empathy

Your Roles and Goals as a Probate Expert are the Same.

Excelling with Probate Leads is as simple as helping your clients understand their options and make informed decisions.  The methodology we teach consistently recommends that all real estate professionals are capable of bringing cash-offers to the table, helping a client list a property as-is, and coordinating repairs and vendor services to prepare a property to go up on the MLS at full retail price, whether this is accomplished independently or by referring business to someone in your professional network.

So, you can provide each of these things no problem, and now you’ve got to guide your clients as they make decisions on which route is best for them.  But what should you do if you come across a client who is disheartened by a cash-offer or as-is price estimate that’s lower than they expected, when you know fixing and selling the house at full price isn’t a viable solution either?

Getting past the stigma of a cash-offer

It usually isn’t easy for a homeowner to accept the reality of a cash-offer on a property they have sentimental attachment to.  They don’t often realize the retail price they have in mind for the property would require a significant investment of time, energy, and finances to attain. As the professional, you get to play an important role in helping them understand why and when accepting a cash-offer or selling as-is might be a much better value for their time.

This video will detail how you can use real estate math to close this gap in perception and build motivation with the prices you present to a client, instead of letting the prices be a source of discouragement.

Find our seller net sheet template in our Mastermind Group on Facebook:
https://www.facebook.com/groups/AllTheLeadsMastermind


Our Mastermind Highlight Reel highlights various top plays from our weekly live (and free!) training calls.
This top play is from Mastermind call #232, which includes greater details on calculating market pricing: https://youtu.be/EdA6OocSiuA

For more tips for increasing acquisition opportunities from probate leads, check out this highlight video: https://youtu.be/QSRZVhUgTfE

For more insight on scripts for cold-calling probate leads, check out our Tips from the Trainer Video – The BEST Real Estate Cold-Calling Script for Probate Leads: http://alltheleads.com/best-real-estate-cold-calling-script-probate-leads-tips-trainer/


Join us for our weekly Mastermind call every Thursday at 1pm EST

AND our Once-A-Month live role play call at 2pm EST every First Wednesday.