Investing in a foreign market as an absentee landlord, without having a strong team on the ground locally, is absolute insanity.
By foreign market I mean if you live in Cleveland, Ohio, and you’re investing in Detroit, that is a foreign market. You can’t effectively manage a property from 150 miles away, or 15,000 miles away.
The only way to take advantage of the opportunities provided in Detroit is to be local or be connected with someone who is local, good, and will work with you.
Now, I have plenty of clients who work with me, and their properties enjoy good returns. I also have clients who come from different situations who attempted to DIY outstate properties and it was a disaster.
We can help them turn around their investment portfolios, but it’s easier to get it right the first time.
Then there are the investors who buy and lose because they don’t heed this advice, and it creates a great opportunity for us and our new investors - because they give away properties they can’t handle anymore that have major challenges, which we come in and address.
If you’re going to do this in Detroit, make sure you do it with someone you like, trust, and respect, and build a relationship with that is absolutely local. (Like us!)