Several years ago, even investment buyers would not consider buying a property sight unseen but as the real estate investment business has grown and gotten more competitive, that is just the way purchases are being made today. In most cases, not seeing a property on the inside or ever walking the outside is not as risky as you might think. And there are some very simple reason why this holds true for most investors.
1. As real estate investors, we see the big picture but are not drilling down to the tiny little details like what’s wrong with the plumbing and why is there no flooring on the second floor. And do you really think that your big picture eye is going to catch something that your home inspector will not see? So what is the reason for your inspection? You are just adding to the drain on your time that could be better spent researching your next deal.
2. As an investor, it just seems really hard to spend your money on something that you have never even seen. But the fact remains that the house is there and looks just like the pictures that you saw online. And a big part of any investment business is being willing and able to take the risk that others are not willing to take in order to make some money. Buying your first sight unseen home is just as scary as the first time you select a renter and then wonder if they are having wild parties in your property and trashing it or if they will quickly move out the day before their rent is due. But again, the risk is also what sweetens the reward.
3. For many people a home is a very emotional thing. It is the place that you will feel most safe and secure with your family. But as an investor, you can’t afford to have these emotions. Each purchase is nothing more than a business deal, and all of the decisions need to be made with the thought of the greatest return and not what would be the perfect layout for a family or how nice upgraded carpet would feel on a child’s tiny feet. Any carpet serves the purpose and a thick Berber carpet in a custom color will not get a single dollar more in rent. Make decisions based on dollars and cents not emotion, so you really don’t need to see the house.
4. And if you do see the property and begin to get emotionally attached, then you are going to want to make a few little changes and upgrades that you can do yourself. Again, time is money in the real estate investing world. And you changing light fixtures and painting doors is not letting you reach your full earning potential. There are tradesmen who will do these absolutely necessary projects more quickly and cost-effectively than you can. Let them to what they are good at while you focus on finding the next great investment property to grow your wealth.
5. Do you feel a burning desire to see your other investments before you close the deal? Does the bank show you the actual CD you are getting? Do you drive by and take a look at the headquarters of the company whose stock you are buying? Did you get a video of the car that you special ordered to be sure it was really just as you wanted it to be? All of these questions sound silly, but that is just to show you that you need to take the same approach with real estate investing. You are investing not purchasing your own home.
6. Along those same lines, getting out of the habit of even thinking of your investments as properties or homes is a great way to eliminate some of the mental wrestling that you might endure with each purchase. Think of each purchase as buying an income stream. It is nothing more and nothing less. You could be buying a widget that churns out more widgets. You don’t care what your original widget looks like, you just want it to keep creating and selling more widgets for you. So think of each property as nothing more than a way to produce income.
7. Focusing on your end goal is always a great way to forget about the tiny stuff. You are looking for ways to make money and increase your personal wealth. In this case, you are providing people with shelter and they are paying you for the use of that shelter. It is nothing more and nothing less. Each property that you purchase is a means of increasing your income and growing your wealth.