Different states and locations to buy land

Land Investing
1

Hey guys is it a good idea when starting out to invest in properties in your home state because of the advantage of actually being able to visit the properties or
is it safe to go ahead in invest out of state in the beginning?

2

Hello Robert - I say invest everywhere as long as we do our due diligence before purchasing.
I invest only in Arizona because I grew up here and know the pros and cons of each area.
If buying out of state, I might hire someone to take photos or drone video for me before purchase.
Also, if we have friends or family in other states, maybe they could help with photos or information before we purchase.
For example, my brother took photos of vacant land for me one time.

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3

I’ve taken the close to home approach, but I’m on the very conservative side of risk. I like being able to see the land myself before closing on it. Having said that though, I haven’t come across any lots that my personal visit has had any significant impact on, so I have been considering expanding my territory through hiring photographers as many other land investors do. If you’re comfortable with the risk of possibly not being aware of a detriment, go ahead and start out with an expanded territory! If you have good markets within driving distance, maybe start there then expand out once you’re comfortable with it.

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4

I mainly purchase properties in my home State as well. Although out of the 150+ lots I’ve bought and sold, I’ve only visited 2 of them in person. After a while you’ll get a lot more comfortable buying remotely. The important thing to remember is to quickly get your photographer/droner out to the property before you close. They’re your eyes and ears and will quickly let you know if there are any unforeseen issues with the lot.

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5

Thanks brian so much for the response

6

Thanks a lot Ted very helpful

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Thanks Sharon very helpful

8

Hello Robert,

Many land flippers start in their own backyard / state. There are some advantages to do that:

  • You can drive to see the property which helps ensure good access, reasonable topography, no squatters, etc.
  • One typically has a better has a feel for RE values near where they live and how that marekt is moving economically.
  • Makes it easier to self close (drop the deed off at the county recroding office, etc.)
  • Makes it easy to attend a few closings in person if using a title company so you build a better relationship quicker for when you need to leverage it (i.e. as for an expeditous close on something you have a sell lined up for on the other side.)

But, most of these outputs can be achieved once you get to know any area where you do business. You can leverage realationsips with real estate agents to do “drivebuys” before buying to get “eyes on properties”, You’ll learn the area by doig more research, calling agents and askign questions, comping properties paying attention to recent sales and for sale parel sin the area and looking at # of listings, # of sales, days on market, etc. buils realtionships with a few good agents and title companies in the area through repetition of deals using them.

A god way to reduce risk is find an area where you can access good data - County GIS system with good maps, FEMA flood maps readily avaialble, sufficent actvity avialble on real esate sites to do comps, investor friendly real estate agents (i.e. they provide heklpful info when you call them and ask them for a perspective on the market in that area, etc.), helpful title companies, etc.

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9

Thanks so much Karl makes sense🤝