Out of State Investing – The Raw Truth Exposed!

19 Dec

Posted By: Sean Terry| December 19, 2008

3 Reasons Why Investors Should Be Confident About Investing Out of State 

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I have been talking to investors all over the map recently and some investor have no problem investing out of state and are confident in doing so and some investors are just afraid.  So what’s the difference?  Is it fear of the unknown or a beginning investor vs. a seasoned investor or maybe just a false perception of control.

The biggest questions I hear is, “What if something goes wrong and I can’t be there to fix it” or “I don’t know the market”.

Well, these are valid concerns but no reason not to consider it.  Here are my 3 reasons “Why Out of State Investing Can Make You Rich” and why you shouldn’t be afraid of it.

 

  1. 1. Only $7,500 Out of Pocket vs. 25% Down Payment.
  2. 2. Full Property Management Firm.

  3. 3. Population Growth & Job Growth.

 

1. Only $7,500 Out of Pocket vs. 25% Down Payment

If you don’t know already our company Fortress Investments offers a unique opportunity here in Phoenix Arizona that allows investors to purchase fully renovated, cash flow properties with tenants in place with 25% guaranteed equity for only $7,500 total out of pocket.  If you live in another city and want to purchase an investment property in your home town you would have to purchase it under the traditional methods of putting 20%-25% as a down payment.  Now lets use a $200,000 property as an example. Following the traditional method of putting a 25% down payment, your total out of pocket will be $50K. The home will be in your own city, BUT you just shelled out $50K!!!  With the Fortress Investor model your total and only out of pocket is $7,500. This one reason alone is enough to consider investing out of state.

2. Full Property Management Firm

Let’s say you purchased a property in your own home town and choose to manage it yourself, YOU would be the sole point of contact.  If anything goes wrong with the property your phone is going to ring.  This is why allot of investors dread owning rental properties.  I can tell you managing your own property is not as easy as it sounds.  Eventually you might hire a Professional Property Management Firm to handle your property/properties.  So let’s say you do decide to purchase here in Arizona and  you hire a property management firm we recommend.  Well, THEY will be the main point of contact for the tenant and will handle ALL the property related issues.  You will be able to check you account online and see in real time what is going on. You will have complete control with a point an click without any hassles.

They will handle:

  1. All the tenant calls.
  2. All the collection of rents.
  3. All the repair issues.
  4. All the paperwork.
  5. The eviction process.
  6. Signing up of new tenants.
  7. Turning the property when it becomes vacant.
  8. Depositing money into your account.
  9. Account updates in real time.

There are investors that are reading this post right now that own mutual funds or stocks that have never visited the the corporate headquarters or even read the prospectus in detail.  These same investor have invested tens of thousands of dollars into these securities and are exposed to massive risk. Companies that were here yesterday are gone today.  The great thing about our program is that you only have $7,500 at risk!  YOU own the house with 25% instant guaranteed equity with a tenant paying your mortgage. Houses can’t go to zero or go bankrupt. 

One investor asked the other day “What if the tenant moves out, then what?”  Well, the property management firm would find another tenant, you will get to keep the security deposit which will cover the rent for 1 month.  The property manager will clean up the property and lease it out again.  Lets say it takes 1 month, your downside risk is a few hundred dollars. 

3. Population Growth & Job Growth

Out of State Investing

Historically Phoenix has dominated the country for population and job growth, currently with this economic downturn all the statistics are skewed but the fundamentals are the same.  Please read my post on Real Estate Market Timing. This is the greatest opportunity we will see in our lifetime to become extremely wealthy.  Investors make huge money in BIG market swings not in stagnet sideways markets. I know, it’s hard to disregard all the negative press but remember Warren Buffets famous quote, “When the market gets greedy I get nervous and when the market gets nervous I get greedy”.  Now is the time to overcome your fear and get greedy, the window of opportunity is closing quickly!!!

**Sign Up For FREE DealMaker Updates** And Receive a 22 Page Report on how you can build roughly $150,000 to $300,000  in instant equity and keep ten’s of thousands of dollars in your pocket.  You will find a Arizona Market Report and learn why Phoenix is one of the best cities in the nation to buy real estate.  We will also give you a step by step breakdown of a sample transaction in detail!   

CLICK HERE

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12 Responses to “Out of State Investing – The Raw Truth Exposed!”

  1. Mr Mogul 24. Dec, 2008 at 11:40 am #

    Also, with property management companies, property owners need to check the credentials to make sure that any out of state contractors are properly licensed, bonded and insured. Any misconduct on the property, by the contractor hired by the property managment company, would be vicariously liable to the property owner (who may not have even known about the tort). Remember, these "unknowns" are coming into direct contact with the tenants, who have a reasonable expectation to be safe and secure in the areas they rent from the building owner. Several general liability issues, based on an express agency relationship with the property management company, will exist. It pays to run a few background checks.

  2. Sean Terry 26. Dec, 2008 at 6:17 am #

    Thanks for the post Mr. Mogul, I agree 100% with your post and should be a valid question for any real estate investor looking to hire a property manager. I went to your site and Mr. Mogul looks like a cool game.

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