Omid Akale Discusses Three Essential Attributes for Long-Distance Investing

Omid Akale Discusses Three Essential Attributes for Long-Distance Investing

Long-distance real estate investing can be an effective way to grow, strengthen, and stabilize your investment portfolio. However, you might lose the ability to oversee the properties you purchase beyond your local area directly. If you do your due diligence, long-distance investing can prove remarkably lucrative. Provided you’re prepared and do your research, this type of investment strategy could be the key to your success.  

Certified Distressed Property Expert and Investor Specialist Omid Akale offers his insight on long-distance investing so that you can widen your scope and jump on the best opportunities.  

Do Your Market Research  

You should research a broad spectrum of property markets to find lucrative – and safe – investments.  The hottest markets tend to have specific characteristics like a diverse economy, a growing population and workforce, low crime rates, and good school districts. If you’re just starting out with long-distance investing, you may want to look for areas that have a high demand for rental units.  

Don’t assume areas that currently have thriving economies and rising property values are necessarily safe investments, explains Omid Akale. Some regions that are presently wealthy and attractive are fundamentally reliant on just a few sectors. If an area has a diversified economy, you might be able to find plenty of low-risk investments.  

You can access data on demographics, population growth, average household incomes, and number of renters vs homeowners from the U.C. Census Bureau, which can prove invaluable when looking for investment opportunities beyond your city and state.  

Partner with Real Estate Professionals  

Omid Akale explains that if you intend to build a real estate empire, you probably won’t be able to oversee your investment properties directly, so you’ll need to create a network of professionals to handle tasks on your behalf.  

At the minimum, you’ll need a real estate agent, but remember real estate agents help you buy properties rather than make sound financial decisions. If you’re unfamiliar with the market, working with a real estate consultant might be a smart move.  

You’ll probably need a property manager to handle a multitude of tasks, such as handling tenants,  payments, maintenance, and advertising. A property manager can essentially act as your boots on the ground whenever a problem arises, says Omid Akale.  

Many new investors overlook the services of certain property professionals to save money, but their skills can be the deciding factor between making a sound investment and losing capital.  

Search for Turnkey Rental Properties  

Building a portfolio that includes properties in various regions can be complicated, so it can be wise to begin by looking for turnkey properties. Turnkey properties don’t require any renovations or major works, which means you can look for tenants and move them in immediately.  

In many cases, explains Omid Akale, there’s more profit in flipping a property than purchasing and renting out a turnkey property. However, because markets can be volatile and unpredictable, it’s good to have a safety net of properties that are unlikely to become unprofitable, even if the margins are relatively low. This inconsistency is why finding properties in areas with diverse economies and a growing population is often the key to investment success.