How to Achieve Steady Cash Flow on Your Remote Investment

Imagine receiving a $20,000 check to purchase a rental property. How about step-by-step guidance from some of the most experienced real estate investors in the industry? That’s exactly what the Dream Investment Adventure series is all about.

Follow our contest winner, Joe, as he purchases an out-of-state rental property. With guidance from Steve Rozenberg, Head of Investor Education for Mynd Property Management, Joe learns about investing remotely.

Dream Investment Adventure Recap

Throughout the series, we’ve learned to identify investment goals and strategy, determine a rental market, and find a local team. We covered analyzing real estate deals and performing due diligence. Joe even completed a rental property rehab without ever seeing the home in person.

Last week, we explored the leasing process, focusing on moving a tenant into an out-of-state rental property. This week, our Dream Investor Adventure series concludes. We’ll recap what went well, what didn’t, and the lessons learned.

The Remote Investment Deal Is Complete!

Joe has a tenant in the property and met his investment goal.

Final Numbers on the Deal

• 75% of the $170,000 value will be refinanced in 6 months.
• 15% cash-on-cash return (once he refinances).

Joe invested about 100 hours into this deal. The learning curve was steep since this was his first remote deal. His second deal in Atlanta should take significantly less time. Joe can now apply his remote investing formula to new markets.

Create Actionable Steps

Investing in a city you’ve never visited can be intimidating. Don’t let remote investing scare you. Start with a positive mindset. Break the process into manageable steps:

1. Identify the market to invest in.
2. Assemble your team (real estate agent, property management company, and contractor).
3. Find investment deals.
4. Analyze the deals.
5. Perform due diligence and make an offer.
6. Rehab the property (if applicable).
7. Lease the property.
8. Review your lessons learned.

Pro Tip: Focus on reaching the next step.

A Plan Makes Action Easier

Taking action is hard without knowing where to start. A well-thought-out plan broken into small steps is essential. Use the Dream Investment Adventure series as a guideline to develop your own action plan.

Learn from Joe’s experience. For instance, have a contractor ready before the rehab begins.

The Remote Team Is Your Key to Success

Finding the right real estate agent, property management company, and contractor is crucial. You must trust they are giving you sound advice and accurate numbers. Perform due diligence when researching their reputation. Don’t hesitate to ask for references!

Clear Communication

Your team’s recommendations and guidance will depend on their understanding of your strategy and goals. Communicate your expectations, goals, and preferences clearly with your team.

Remote Investing Lessons Learned

After each remote investment deal, analyze the process:

• How can you avoid problems next time?
• Can you make the process more efficient?
• How can communication with the team improve?
• If you could do it again, what would you change?
• Do you need to adjust your process steps?

Each remote investing deal helps you create a repeatable formula. The first time may take extra effort, but you’ll learn what works and what doesn’t. Fine-tune your formula after each deal. Every experience is a chance to grow as an investor, allowing you to work smarter and faster next time.

Pro Tip: Reuse your local team for a second property.

Your Active Involvement Is Still Required

Remote investing doesn’t mean handing over everything to your team. Stay actively involved. It’s your business, and you should oversee each step. Make smart decisions based on your team’s information and advice.

Take Advantage of Available Resources

Use available resources during a remote investing deal. Make the most of your team’s expertise. Property managers, for instance, offer valuable insights into the local rental market. They have access to proprietary data that helps you before purchasing the property. Use them to select areas to look for properties and get accurate rent amounts for calculations.

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By following these steps and tips, you can learn how to achieve steady cash flow on your remote investment. Stay focused, communicate clearly, and leverage your resources for successful remote investing.

Embark on your journey to real estate success today by exploring our upcoming events and immersing yourself in a community dedicated to education, growth, and prosperity.