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Investing in local real estate is a relatively comfortable way to get started in the real estate investment market. However, depending on where you live, the potential to build strong, cash-flowing portfolios may be limited by the property values and real estate near you – or maybe you have dreams of investing in cities like Toronto or Vancouver from the comfort of home. This is where long distance real estate investing comes into play.
Long distance real estate offers the opportunity for investors to buy into properties and Canadian real estate markets they otherwise would not have access to in order to grow their portfolios and make new investments that can generate passive income and equity for years to come.
However, before you start investing in long distance real estate, it is always important to sit down and discuss your goals with a mortgage broker that has a strong network of lenders across the country for you to rely on. So, before we dive in, if you would like to get started in long distance real estate investing, click the link below for a free strategy call today.
Why Should You Invest in Long Distance Real Estate?
When it comes to investing in real estate long distance, there are a few key advantages that investors flow towards when deciding to invest. These are very common advantages that are near-impossible to pass up when assessing real estate by the numbers.
Access New Markets/Investment Opportunities
The obvious advantage of investing in long distance real estate is the ability to access new investment markets and opportunities for profitable rental properties that you cannot access from home.
For example. if you wanted to invest in Toronto real estate and cash-in on the strong commercial property market in the city and the GTA as a whole, but you are located in Vancouver, your options are to either move or begin long distance real estate investing.
However, if you are already investing in British Columbia real estate, moving to Toronto would still turn you into a remote real estate investor unless you liquidated your entire portfolio and gave up on the properties you have worked hard on acquiring.
Another great advantage to long distance real estate investing is the ability for you to better manage and minimize the risk your portfolio is under. Different locations and cities respond differently to new market conditions or major events. So, by investing in long distance real estate and putting your money into properties across multiple cities, provinces or even countries, you reduce the risk of a downturn in one particular location pulling your entire portfolio down.
How to Invest in Long Distance Real Estate
While the benefits of investing in long distance real estate are clear, many investors hesitate because they do not know where to begin. So, to help you get started, here are 3 simple steps to follow for investing in far away properties.
1. Research Markets You Want to Invest Into
The first step is always going to be for you to decide where you want to invest and why you think that location is a good fit for you.
As part of your research you should look at property prices, vacancy rates, insurance rates, and relevant laws and legislation in the area to ensure that the market suits your needs. You may also wish to visit the area to get an idea of the lifestyle so that you can better understand the demographics of the region and who your target market would be.
2. Connect with Real Estate Professionals in The Region
Once you have selected a market you want to invest into, you need to find real estate professionals to work with in that area – or professionals near you who understand that market.
The main two parties you are going to need to connect with are a realtor or brokerage that knows how to find great investments in that location, and a property management team with full-service options at valuable rates so that you do not need to travel every time there is a vacancy or maintenance concern.
With the realtor, you may be able to get away with hiring a realtor near you that is familiar with the market, but you should never count out the expertise of the real estate agents in other markets. Especially because many real estate brokerages offer rental listing services to help you find tenants for your new investments straight away.
3. Begin Investing in Long Distance Real Estate
Once you have decided which market you want to invest in, and have connected with the necessary professionals to ensure your investments are covered, it is time to start investing with the strategies and methods you have come to trust and rely on.
If You Are Ready to Invest
If you are ready to invest in long distance real estate, then it is time to start securing the best mortgage financing available in the market you want to dive into. This is why it is so important that you work with an experienced mortgage broker that has access to a network of Canadian mortgage lenders across the country. That way, you can get the best rates and terms available for your new cash flowing real estate investments.
So, in order to help you get started today, our mortgage team at LendCity would like to offer you a free strategy call in order to discuss your long distance real estate investing goals so that we can pair you with the lender and product who is best suited for your needs.
All you need to do to get started right now, is click the link below to book your call right now.