Is your local housing market getting a bit frothy? Is stiff competition among eager buyers keeping you on the sidelines instead of in the middle of the action?
Have you considered investing out of state?
Although it requires a bit more legwork, executing a successful real estate investment outside of your home state is certainly possible and, often, provides long-term financial benefits.
Curious to learn more?
Here are three reasons to include out-of-state properties in your REI portfolio:
Sometimes it just comes down to dollars and cents. In particularly popular areas of the country, your dollar just doesn’t go as far. In certain cities (within the San Francisco Bay area or New York City among others), the high cost of living and limited housing supply have driven real estate prices through the roof. As an example, Kiplinger reports that the median 2017 home price in San Jose was a cool $1 million while in Baltimore it was a mere $238,000. Quite a difference—no? But even if money were no object, there are other reasons to consider distant locales for your next real estate investment project.
You know what they say—don’t put all your eggs in one basket. Good advice. Everyone is familiar with the basic tenets of financial diversification which, essentially, is built around the idea that holding different asset classes within a single portfolio reduces overall risk. With enough variety—the theory goes—when one asset gains another loses, offsetting some of the overall variability. Along those lines, diversifying your real estate portfolio geographically may offer you similar protection from swings in the market. Faster price appreciation in, say, Nevada could offset lower profits in L.A.
By now you might be sold on the idea of investing out of state but wary about the execution. Fortunately, we live in a day and age where technology makes almost anything possible. When it comes to real estate investing, that means that locating, renovating, and selling or renting a property in a distant region has never been easier. A few mouse clicks on www.foreclosure.com allow you to take your search nationwide, instantly. Looking for a real estate agent on the other side of the country? Check out www.realtor.com for millions of listings. Need recommendations for contractors or subs? Tap into your social network and ask for referrals. Facebook Groups is a good resource for hunting down localized information.
Whether you are looking to fund a fix and flip project that is around the corner or miles away, Navigator Private Capital has you covered. Our lending footprint is extensive and growing with current operations in Washington DC, Maryland, Virginia, Delaware, Georgia, Minnesota and Wisconsin. Our flexible financing programs don’t come one-size-fits-all but are designed around each client’s individual needs.
Reach out to us at 443.603.0193 or via email at email@example.com to find out more.