Investors buying real estate in out-of-state markets
10/24/2016 | Real Estate Blog
Pennsylvania real estate investors might be interested in learning about a trend for those who live in high-priced markets along the East and West Coasts. Investors are increasingly purchasing properties in areas with low home prices but competitive rents in other states using firms.
A number of start-up companies allow residential real estate investors to purchase homes through them. The companies then charge fees averaging around 3 percent for acquisition costs and between 7 and 10 percent for property management services. The investors still must worry about things such as vacancies and broken appliances, but the companies take care of most of the hassles. This allows investors to purchase properties and to rent them without ever having to see them.
Some realtors say that they’ve seen more out-of-state buyers than ever before. Popular areas for investors include Georgia, Kentucky, Alabama and South Carolina. Realtors do stress the importance of doing homework on the homes and the neighborhoods in which they are located. Out-of-state investors need to understand the neighborhoods in which the investment properties are located as well as the vacancy rates in the cities in which they are looking.
People who are interested in investing in real estate might want to consult with a real estate attorney who can help clients with completing the research that may be necessary to make certain that a prospective investment property is worthwhile. Legal counsel may also complete the title research and help with identifying sources of funding for the purchase. The attorney may then negotiate the terms of a purchase and sales agreement and represent the client throughout the transaction.