Don’t let the Coronavirus get in the way of your dreams of homeownership.
With the rise of the coronavirus (COVID-19) outbreak, remote connectivity is establishing its importance in various aspects. Through solutions such as cloud storage, video conferencing, and telecommuting, technology is solving logistical problems for an array of industries.
Not one to be outdone, the real estate sector is also serving its target market with remote investment opportunities.
In the past few months, remote real estate investing options have been making waves in the industry. It is all due to the ease of use, flexibility, and scalability that they bring to the table. Amid the calls for shelter-in-place and social distancing measures, these tech-based investment models are now also being noticed for their relevance to the current situation.
How Do Remote Investments Work in Real Estate?
At its core, remote investment allows interested parties to invest in ventures without being physically close to them. This type of investment is regularly seen in the venture capital (VC) market, where VC firms support projects that aren’t located in their home location. Remote investments allow these firms to broaden their horizon and look beyond what the local market has to offer.
When it comes to real estate, remote connectivity brings about similar benefits with a dash of additional advantages on top. With remote real estate investing options, individual or institutional investors are not constricted by a single location. As a result, they can easily tap into additional markets, larger profit margins, and an expansive inventory.
How Effective Is This Investment Model?
According to data collated through Auction.com, the remote investment model has found noticeable success in the real estate sector.
In 2019, 16 percent of bank-owned (REO) buyers went for listings that were for out of state homes. This was a gradual yet surefire increase from 2016, where 14 percent of REO buyers chose listings that were not in their home state.
In fact, the findings showed that in 2019, 19 percent of all REO properties on the platform went to out of state buyers. This shows that the remote real estate investing option has had a lot to offer even before the movement change that COVID-19 restrictions brought to our lives.
How Can You Invest Remotely?
If you are interested in remote investment, it is easy to find specialized platforms and realtors that make the process simpler for you. Through targeted selling and closing procedures, these options allow you to invest in a property without having to make repeated visits out of your home.
You can also make use of remote notary services, which allow you to close on your listings without having to be physically present in a room with the seller. At the time of writing, 23 U.S. states have passed remote notary services under law, with 13 states fully implementing remote notarization. This is especially relevant amid the safety concerns triggered by COVID-19.
While choosing remote real estate investing options, it is necessary that you work with a vendor who you trust with their findings regarding inspection results, valuation, and other factors that are crucial to closing on your chosen home. By working with a credible entity, you can ensure that you are making your remote investments in a safe and secure manner, while also avoiding any red flags that put your funds at risk.