The old-school ways of acquiring property, via property tours, open houses, and in-person negotiations still reign in the real estate industry. But technology is making waves across these tried-and-true methods. The virtual world has made significant inroads, challenging these traditional methods. And among many investors, there’s a growing interest in virtual real estate investing. So could virtual investing become the “new normal,” opening convenient doors to cream-of-the-crop markets from coast to coast?   

 Before we tackle that question, let’s delve into the WHAT. What is virtual or remote real estate investing, as it’s sometimes called? The concept is pretty straightforward as it refers to a completely online process of acquiring real estate. From the very first step of seeking property and researching markets to a thorough investigation of the property to closing escrow, all are accomplished remotely.  

 The advantages of investing via a virtual process stack up quite nicely. 

• • A reduction in the costs incurred, namely for travel—transportation, lodging, meals—as well as the cost of being away from the business 
  • Significant time savings by not traipsing hither, thither, and yon  
  • An opportunity to conveniently build an investment portfolio without geographic limitation 
  • Increased ROI by investing where affordable prices, higher yields, reduced competition, and lower property taxes offer attractive opportunities 
  • The benefit of a diversified portfolio that minimizes risks from local economic downturns and natural disasters 
  • The chance to avoid emotional attachment to property(ies) and the possible conflict of personal friendships with tenants 

It’s only fair that we also nod to the potential disadvantages of remote real estate investing. 

• • A needed repair or property defect may be overlooked if you’re not physically at the property 
  • A qualified property manager and a leasing agent will, in most cases, be a necessity  
  • Those who lean toward micro-management tendencies may have difficulty handing over the daily details to someone else 
  • The difference between traditional and virtual investing presents a definite learning curve, one that must be acknowledged and adjusted to accordingly to realize success 

In reality, all of these potential disadvantages can be navigated. Extra attention in reviewing the property can ensure no surprises. While it may take some time and effort, engaging the services of an experienced property manager/leasing agent can be a life-saver. Learning to cope with your micro-management tendencies, while a bit painful, can be considered an act of personal growth. Success can indeed be achieved if the learning curve is tackled head-on with a serious effort.  

Other elements that will impact success include— 

• • The amount of time invested in analyzing markets should involve more than a cursory look-see to avoid buying the wrong property or purchasing at the wrong time 
  • Time spent scoping out all that technology has to offer and choosing the tools that best fit your remote real estate investing endeavors 
  • Efforts to compile an arsenal of information—tips from those with experience, data from the location you wish to consider, a list of potential professionals in the area who can assist you—and the very best in tech-savvy tools  

Will virtual real estate investing become the “new normal”? Only time will tell.  

 About Rentals America   

Rentals America provides full-service property management for residential rental properties. Our team is completely dedicated to property management and we’re here to help landlords navigate the rental market.