RE Agent For Out Of State Prop. Verification Due Dill.
When doing DD on out of state tax deed property would contacting a RE Agent to verify that the property exists and the Market Valuation of the prop. be a good tactic?
In general how much will a RE Agent help an out of state investor and at what cost?
The RE agent may also be used to market the property.
OR is there a better way...you tell me.
I'm new at this.
Hi Tonya,
There is enough information on your post to give you an answer about a better way. You have to define a complete strategy and see if it makes sense.
I don't buy at tax deeds, but do buy tax liens. I wouldn't hire an agent to look at them, simply because I have a kill ration of less than 10% (buy less that 1 lien out of every 10 properties I consider). What kill ratio do you plan on having ? 10% ? If so, do you want to pay 10 times the agent fee for every property you buy ? 1% (which is what am hoping to have next year, as I will start doing more due diligence) ? Do you want to pay 100 times the agent fee for every property you buy ?
When I bought liens out of state, I simply drove 10 hours each way, looked at the ones I pre-selected, then bid on them. I had to be in that state for the auction anyways.
Seems like you are in New York. Which state you want to buy in ?
[addsig]
Dear Tanya
Go look. Please, do not delegate this tasks to others. Look on it as a vacation and a learning experience.
I once years ago representing a Private Trust which bought this kind of paper, did delegate this task to my appraiser.
Of the ten buys, I had to perform on a recourse to the Trust of Two. Good appraiser but lousy judge of liens.
Cheers Lucius
Tanya,
There people that you can hire, to inspect these properties. All the big companies out there hire due diligence contractors. These contractors will go out to the specific county that you want to invest in, and look at these properties. They will give you a rating and usually take a photograph of the property. I know this becouse I'm a due diligence contractor myself. My clients send me around all over the United States. This may be a solution that you want to look into.
Jorge