It doesn’t really matter if you’re going to start a major rehabilitation project or build a new rental from the ground up, either way it’s not only fun to watch your project eventually take shape but also to make sure the property is going smoothly and will be completed on time and on or near budget.far away investing

That said, sometimes real estate investors have an opportunity to participate in a major rehabilitation or new construction project in an area that’s not quite a short distance away. Sometimes the opportunity takes a plane trip in order to see the project. Is that something you should consider? Is a real estate investment, especially new construction, something that you should participate in if you live far away?

Real estate investors everywhere will tell you the advantages of knowing a neighborhood. Over time an experienced investor can tell at first glance whether a new or potential listing is a worthwhile investment or not simply due to the knowledge of the area gained over time. But if you have a potential investment in an area you’re not familiar with at all and perhaps is two time zones away what can replace that intimate knowledge?

If you’re building a new rental in a familiar neighborhood you can always drive by the project just to check on things. You want to see your investment at work and eventually completed. But if you have to drive eight hours or fly on a plane to get status, how can you monitor your investment?

Without an experienced team you can trust who has “boots on the ground” who has already vetted the project and is someone you’ve worked with in the past, you may want to pass on the opportunity. Without first-hand knowledge of the area, property values and trends as well as managing the construction project, it may be best to keep long distance investments restricted to existing property rentals. However, if you can build a team you can trust there’s no reason to limit where you place your investment dollars.