Welcome to passive real estate investing, the show where busy people like you learn how to build substantial passive income while creating wealth for the long term.

And now here's your host, Marco Santorelli.

Welcome to Passive Real Estate Investing, episode 16. I'm your host, Marco Santorelli.

And welcome, and thanks for joining us again.

Today's show is about how to purchase property out of state or out of your area or in another market.

It's what I've developed over the years and I call it the Purchase Process checklist. Essentially I started investing out of state from California in three different states back in 2004 and I was buying up a lot of property in a very short period of time.

But that process was not something that I knew exactly how to do from day one.

It was a process that I learned very quickly and through that

process I made a lot of mistakes I did lose some money but I also learned how to

properly quickly and efficiently identify investment opportunities,

put them under contract, do my due diligence pre-contract, post-contract, and get to a close. And although there's no rocket science in this process, it is important to understand because a lot of investors find this process to be somewhat foreign, especially if you haven't done it once or twice.

So knowing what to look for and how to purchase property out of state or out of your local

area is very important if you want to be successful.

Because the truth is a lot of people live in markets that are inflated and overpriced

and the numbers just don't make sense there.

For example, coastal markets like in California, New York, New Jersey,

the rent to value ratios there are so low they might be 0.5.4% 0.3% the numbers just don't make sense and on top of that

those property values are so high that your investment capital, which is limited, will only go so far.

But when you look outside of your local market, you will find markets that are probably

better off economically, have better opportunities, more choice for good

quality income property, and you'll find that your cash on cash returns are higher, and your overall down payment will be lower which means that you can take your fixed amount of down payment capital and leverage that into a larger real estate portfolio, meaning that you can purchase more properties than you could locally.

Is your cash working hard for you? Savings accounts and most stocks, bonds, and mutual funds provide little to know real rates of return.

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