Buying Property? Why It Always Pays To Meet The Neighbors First
It is almost always best to get boots on the ground and meet the neighbors of a property before you make new acquisitions.
Failing to do so can bankrupt you fast. It only takes one or two duds weighing down your portfolio, or eating up all of the profits and cash flow from your other flips to really kill your flow.
So, how do you balance these best practices with efficiency? Why is meeting the neighbors so important and valuable?
Remote Versus Local Wholesaling
Virtual or remote wholesaling has become far more popular in recent years. Especially thanks to COVID lockdowns, new technology, and real estate investing courses promoting it.
It works. It can be hyper efficient and profitable. Especially at high volumes. However, while buying property sight unseen can be great in so many ways, it can also be risky.
Fortunately, you can find some balance. There are still ways to get the best deals and most fast, without getting lumbered with dead weight properties. For example, going out to meet the neighbors of a pending deal after you already have a contract signed with contingencies on it. Or hiring local contractors to go out and do some leg work for you.
So, why can meeting the neighbors make all the difference?
Avoid Grossly Overpaying
The last thing you want is to proudly show up at a property you just closed on, only for the neighbors to tell you that you paid double what it is worth.
Identifying Problem Neighbors
It is not uncommon for there to be problem neighbors. Some just don’t want neighbors or may be mad because they hoped to buy the property themselves. They can make it hard to do what you want with the property, or can actively block resales or rentals, versus becoming allies. You don’t want to be stuck with a property that you can’t flip or rent.
Problem Properties
There’s only so much you can see on Google maps or other virtual tools. There is only so much that you can see in person on any given day and time. Neighbors have a lot more information on whether there have been environmental problems, frequent flooding, or other issues that you just would never uncover until it is far too late.
Summary
By all means go fast and do a high volume of real estate deals remotely and out of your immediate area. Though, whether it is yourself, or a team member, meeting the neighbors before you close on a new deal can save you large amounts of stress and money, or cost you everything if you neglect it.