You can do it, I promise! I meet so many investors who don’t consider investing outside of Denver. They are often intimidated by the prospect of not being near their investment. It’s not as scary as you might think, but it does require work and a different mindset. Here are the five steps I used to buy my first property outside of Colorado.

1. Market - I chose markets of which I had some knowledge and those that had a positive economic outlook - jobs, population, unemployment rates, industries, universities, low crime, etc. Advice: Choose a market you already know and/or where you already have contacts.

2. Team - I cold called investor-friendly agents, lenders, and property managers. If you have contacts in your chosen market, ask for referrals. I then interviewed potential team members and chose based on proven track record, personality fit, and how they ran their business. Advice: It’s ok if these people don’t turn out being your long-term partners/team members; they’ll be helpful enough to get you started.

3. Analyze - I analyzed as many deals as possible. Soon I got a gauge on what rents were by talking to my agent and property manager. My team helped me understand the nuances of the various expenses in that market, ie taxes, snow removal costs, etc. Advice: Be conservative in your underwriting, especially if this is a new market; you can refine as you underwrite more properties and have more exposure to the market.

4. Trust - My team my eyes and ears on potential properties; they previewed properties and sent photos, videos, and summaries of their findings. Over time, they started to understand my criteria better and better. Advice: It’s not uncommon to purchase properties without visiting them yourself; that requires trust in your on-the-ground team.

5. Manage - After I purchased my first property, I had to manage my on-the-ground team. Communication was key. If they don’t perform to your standard, you can terminate them. I had to fire one of my first property managers. Advice: Don’t forget that your on-the-ground team works for you; they must earn their fees and be accountable to you. BUT remember…nobody will care for your property as much as you do, so manage your own expectations.

Investing out-of-state or out-of-town requires a different mindset, expectations, and approach. Many opportunities can open up if you know how to build teams in other markets. You’ll no longer be beholden to an expensive market like Denver. You can do it, I promise!

Contact me below for more information on how to be successful with out-of-town or out-of-state investing. If you need referrals for investor-friendly agents (the best place to start)in other markets, just ask!