Long distance ownership?

[kanabel]

Hello, everyone! Would like to know what`s your experiences and thoughts on owning property few thousand km from where you live. Did it cause you any additional hardship/expenses or it`s only a matter of quality property management company that you hire? After all, even though there is good opportunity there, is it smart to buy something that`s expensive to reach and fix the problems if they arise? Thank you.
Dejan

 

[mikecunning]

QUOTE (kanabel @ Nov 23 2007, 05:24 AM) Hello, everyone! Would like to know what`s your experiences and thoughts on owning property few thousand km from where you live. Did it cause you any additional hardship/expenses or it`s only a matter of quality property management company that you hire? After all, even though there is good opportunity there, is it smart to buy something that`s expensive to reach and fix the problems if they arise? Thank you.
Dejan


Hi Dejan:

Everything I`ve ever owned (over 400+ now) has been long distance! I buy in markets that I`m interested in...I`m also a control freak so it`s a really good idea for me not to be going by my properties everyday!

Good management is the key here.

Good luck!

Mike

 

[invst4profit]

It also depends on your experience in owning rentals.
It is far easier to do in your own back yard.

 

[talno]

QUOTE (invst4profit @ Nov 23 2007, 07:58 AM) It also depends on your experience in owning rentals.
It is far easier to do in your own back yard.


You invest where you can make money! but long distance ownership comes at at a cost and it ends up costing you morer if you cannot see what`s being fixed and how. Management fees must be considered. It depnds a lot on your personality and financial objectif. Personaly I hate having to depend on others and that`s for me the most difficult part. It`s far easier when you can address issues yourself.

 

[DonCampbell]

Hey Dejan,

Like any investment you want to put your money where it will work the hardest for you. With real estate, that is often not in your local area and sometimes it is half way across the country. If we all focused on just buying in our local regions, we would be forced to put our money in regions that don`t score well on the Goldmine ScoreCard.

Of the hundreds of properties that I own only 2 can I rive by... the rest are at least a flight away, because I want my money working hard and I have followed the following three steps. Yes it costs you a bit more on a monthly basis to have a quality management company on your team... but this is a pittance compared to the real profits that will come to you by investing in strong economic regions vs just buying `close to home.` Just buying close to home is a great way to buy underperforming investments and the reason that so many people don`t do well in real estate... they live by `old wives tales` not `real life investor strategies.`

There are three things that drive the success of your real estate investments (over and above the obvious economics we discuss in detail in Quickstart and the book Real Estate Investing in Canada)

#1 Systems

#2 Relationships

Followthrough

# 1 You want to follow a proven real estate investment system that has a track record in your target region (i.e Canadian strategies for the Canadian market). You also want to ensure that the system is designed to mitigate your mistakes by forcing you to ask the tough questions.

#2 Relationships. You will want to target a very specific region and then start to develop trusted relationships in these areas. i.e realtors and property management companies. You find these NOT by leafing through the yellow pages, you find this by surrounding yourself with others who have already built the relationships in the region and know who to trust and who to run away from. Get these refferals and then interview to see if your personalities fit. Then work incredibly hard to building these relationships over many years.

#3 Follow Through - you can have all of the best research and best knowledge on the planet coupled with the best professional relationships, however if you don`t actually `shoot the puck` you`ll never score.

It is great to hear that you are doing your due diligence and asking the key questions. Put your money to work and use the Property Analyzer Form to ensure you have factored in your operating costs.

 

[kanabel]

Thank you Mike, Greg, Talno and Don. It`s really helpful for some rookie like me, to hear experiences and thoughtful advice. Don, I have read your book, and I think it`s great. Thank you for sharing those tools and other insights with us. I am trying to complete Goldmine Scorecard by visiting target area soon, and then use Property Analyzer. My major concern / dilemma was that I am from Edmonton (no. 1 investement city according to many), but I`d still invest in certain area of Maritimes, which is pretty far. This would be my first investment with an ACRE system (if it fits of course), and I hope it`ll come out good as I think. Thank you, all, again.
Dejan