Is Location in Real Estate Investing the Most Important Factor

Post on: 20 Сентябрь, 2015 No Comment

Is Location in Real Estate Investing the Most Important Factor

Is location of utmost importance in real estate investing? Your best real estate investment is not necessarily in your own back yard. At least that is what the infomercial gurus say.

I have conversations every day about location playing a critical role in purposeful real estate investing. Many people struggle to embrace this concept. I suppose it is because there are so many late night infomercials selling tapes, books and CDs that try to dispute this as a myth.

In my early years I always wondered why I insisted in my head that I could not accomplish what these so called gurus were trying to say. They continued to say it does not matter where you live, these strategies will work anywhere! I struggled to embrace that statement. I always wondered why they would say it if it was not true.

My epiphany: something my father always said: “Follow the money trail and you will find the answers to anything!” To sell books and CDs, these gurus needed the largest possible buying audience. So they actually created the audience by statements like “These strategies will work anywhere!”

Is this true? In some ways, yes. The strategies for real estate investing will work anywhere. The perception is you can buy the program and make money regardless of where you live. Okay, this may have an element of truth as well. You may make some cash flow on investment properties, but lets get real: Making cash flow is only good while you are making cash flow.

Today’s global economy is total evidence that location is the most important element of real estate (as well as most any business location). While you can get cash flow in any city in the U.S.A. right now. And not everyone has a back yard that can produce positive cash flow with anticipated growth that will satisfy the purposeful investor (not unless you consider your backyard to be 24,903 miles or 40,076 km deep! That is the full circumference of the globe). Our foreign friends have this figured out: U.S.A. real estate is a great investment for overseas buyers.

Once in the U.S. there are 50 states and almost 400 MSAs (market statistical areas). Wow! You narrowed your search to the U.S. with almost 400 MSAs.

Is Location in Real Estate Investing the Most Important Factor

But dont forget: NOT ALL MSAs ARE CREATED EQUAL! Frankly, the information is a slow moving target. Buyers markets exist for a 1 to 4 year span and then may move on. Let me clarify. The average market is good to great for typically 7 to 12 years. However the best time to buy is the beginning so you can ride the full wave of appreciation. So with this in mind,where do you go next? How you find the best markets?

Okay, here we are getting detailed. To answer this requires a thorough review of the content of all these blogs and information. We painstakingly address this everyday at www.EquityBuildersGroup.com.

It is suggested that people spend more time planning there vacation than they do planning their retirement or any of their investment strategies. Yes, it will take a little diligence. You may be fortunate to live in one of these areas that represent the best market to invest in, but with a 24,903 miles of backyard out there, chances are you will want to look for the best markets for yourself and your family’s future.

Let me help you! Contact The Equity Builders Group or call me at 727-808-8735.


Categories
Cash  
Tags
Here your chance to leave a comment!