Out-Of-State Investors Check List of Questions

The following lists of questions are suggested questions to ask before you plan to purchase residential real estate outside of your neighborhood.

It's probably best to speak with at least three licensed real estate sales professionals and three property managers in the area. During each interview, you'll want to learn as much as you can about that area's real estate sales market and rental market. At the same time, you'll want to ask the right questions to determine if that professional will meet your needs, requirements and standards.

Here are some basic questions to ask the real estate agents:

1. What areas do you cover?

2. How long have you been in the business?

3. How do you work with investors? Walk me through the process.

4. What types of properties do you specialize in?

5. Do you have any investments of your own?

6. What type of housing do you recommend for investors- single family, multi-family? Etc.

7. What kind of market are you experiencing? What kind of market have you experienced over the last five years? Ask for CMA reports. (Comparative Market Analysis) describing price changes, list price to sales price ratios, inventory changes, etc.

8. What kind of industry and jobs are in the area? Where located? What are best areas for rentals, why?

9. Could you give me a summary of the expected closing costs out in your area?

10. Would you provide me with references?

11. Do you have a property manager that you would recommend?

After talking with at least three agents, contact at least three property managers. Make sure you ask the following:

Regarding the Market:

1. What is the rental market like? For single family? For multi family? What is the vacancy rate? What kind of people rent single family homes versus multi-units?

2. What are best areas for rentals?

3. Where can I read about landlord and tenant rights in your area?

4. What types of amenities will tenants pay extra for? Garages? Indoor laundry? etc.

5. What kind of maintenance and other costs should I expect? Can you provide me with a sample cost sheet?

6. According to the state and local laws, are there any times when you are required to have an on-site property manager?

7. Is there rent control in your area? Do you see it coming?

8. What new developments are coming to your area?

Regarding Your Services:

1. What areas do you cover?

2. What do you charge? What fees should we expect?

3. Who pays for advertising? You or me?

4. What will you do if rent isn't paid on time?

5. How often do you do inspections? Do you drive by? Take photos?

6. How do you qualify tenants?

7. How often do I receive reports/statements from you? Would you give us an example?

8. What rental agreement do you use?

9. What do you do to keep up-to-date on landlord/tenant rights?

10. Have you ever had to evict anyone?

11. If we need an eviction, do you perform the eviction, or do you hire an eviction service?

12. How do you handle repairs?

13. How many properties/units do you manage?

14. Do you own any rentals?

15. Are you full-time property manager? Do you do real estate sales, too? Are you licensed?

16. What happens when you go on vacation? Who handles the property management?

17. How do you market (advertise) your rentals?

18. What is the vacancy rate on the properties you manage?

19. Who do you use for repairs? Do you have a team of handymen and contractors? Are they all licensed? How did you choose them?

20. Would you provide us with referrals- current owners, and former owners you once worked with?

21. Do you have a real estate agent you would recommend?

Once you have gone through this process, then you are ready to visit the area. Be true to yourself and honest with the professionals that you choose to work with. Choose to work with one real estate agent exclusively. You'll get the best service that way; and if you've been diligent in your interviews, then you should feel comfortable with the professional that you've chosen.

Neda Dabestani-Ryba is a licensed Realtor in Maryland. She is a member of the President's Circle of Top Real Estate Professionals. She can be reached at (800) 536-3806 or visit her website for more information: http://neda.dabestani.pcragent.com/

Prudential Carruthers REALTORS is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential Financial company. Equal Housing Opportunity.

Latest News


Xinhua

Microsoft's Ballmer to CES: keep investing in tech despite ...
Scientific American - 10 hours ago
Las Vegas , NEV. -- In his first ever CES keynote, Microsoft CEO Steve Ballmer yesterday acknowledged the tough economic times, but urged companies not to ...
Microsoft: the year ahead ComputerWeekly.com
Microsoft releases Windows Server 2008 R2 beta VNUNet.com
Windows 7 beta available worldwide on Friday AFP
G4 TV
all 1,213 news articles

Wealth Bulletin

How to avoid a Madoff fund
San Francisco Chronicle,  USA - 1 hour ago
Feeder-funds (hedge funds or funds that do all their investing through another fund) and funds-of- funds sold investment services to individuals, ...
Fund-of-Hedge Funds Lacked Technology to Avoid Madoff Losses Advanced Trading
D Bank declined offers to invest with Madoff Financial Times
all 12 news articles

Express from The Washington Post

The Best Investment Values in a Decade
Motley Fool - 9 hours ago
These days, we're presented with what Ron Muhlenkamp a few months ago called "the best investment values we've seen in a decade." Obviously, the market has ...
You Are About to Make a Bad Investment Motley Fool
The Flight to Safety Could Burn You Motley Fool
Wednesday's Biggest Stock Stars Motley Fool
Motley Fool - Motley Fool
all 146 news articles

Dividend.com

Billionaire investor places next supermarket bet
MarketWatch - 5 hours ago
Yucaipa's investment funds have been aggressive buyers of Whole Foods shares since Nov. 24, spending a net $98 million to amass the stake. ...
Activist shareholder buys 7 percent stake in Whole Foods Austin American-Statesman
Billionaire investor Burkle bets on Whole Foods MarketWatch
all 22 news articles

Thomas, McNerney & Partners Promotes Three Members of Its ...
PR Newswire (press release), NY - 7 hours ago
Thomas, McNerney & Partners is a health care venture capital firm with approximately $600 million under management, focused on investing in life science and ...

Markets Media News

Uma Thurman No Help to Arpad Busson in Madoff Fraud’s Nightmare
Bloomberg - 20 hours ago
In mid-December, EIM disclosed it was one of at least a dozen funds of funds caught up in the massive alleged fraud perpetrated by New York investment ...
Hedge funds' year is worst ever, and fall may continue Minneapolis Star Tribune
Blackstone To Rationalize Single Manager Hedge Funds Businesses In ... PR-Inside.com (Pressemitteilung)
Hedge Funds Meet Their Match Barron's
all 54 news articles

US investment in IT would create jobs, group says
ITworld.com, MA - Jan 7, 2009
by Grant Gross A US$30 billion investment by the US government in broadband, health IT and smart energy grids would create or retain nearly a million jobs, ...
New ITIF Report Documents How $30 Billion IT Stimulus Package ... eGov monitor
$30B IT Stimulus Will Create Almost 1 Million Jobs Slashdot
all 32 news articles

Appleseed Fund Ranked by Lipper as Top Performing Midcap Value ...
CNNMoney.com - 12 hours ago
"Since the Appleseed Fund's inception, we've shown it's possible to outperform the market by investing in companies with strong sustainability records and ...

Invesco Fund Loss Stirs Investor Fears
Wall Street Journal - 43 minutes ago
By DIYA GULLAPALLI 'Stable-value" investment funds have been one of the last havens in employee-retirement accounts. But one, advised by money manager ...

New T. Rowe Price mutual fund eyes global investment
Bizjournals.com, NC - Jan 7, 2009
T. Rowe Price Group Inc. is launching a new mutual fund seeking reward amid the risks of global fixed-income investing. The Strategic Income Fund will ...

Resources