FAQs on real estate investment must have a where

By
Real Estate Agent with The Virtual Real Estate Team 104556

The picture here doesn't seem to relate to real estate investment since it is a picture of the ocean this morning when we started out walk on Jupiter Beach in Florida but it will make a little sense later. With the access to information on the web we have an ability to go outside of our neighborhood and look at real estate in the United States but also outside of it so where we get out best return and what can make sense to us will be handled in this post. We have gone through the why, who, and what, so it is time for the where, and the after this the when.

My Home Town: What I love about real estate is the tactile part of it. We can go by it and touch it, and see it inside and out and what better place than our home town. Given enough time even if you are not a REALTOR® who have local access to statistics, information flow, a hyperlocal knowledge based on your gut instinct, and the ability to check it out at any time. When people ask me where to start I always go to what Warren Buffett says, invest in what you know and local is what you know best. You also know many REALTORS® in your home town that you can interview and decide if they are the who of real estate investment.

Out of State: 95% of my investors live outside the state of Oklahoma. Investing out of state may present more risk than local so you need to be hyper-vigilant more so in who you choose to work with. You should also know the difference in the market places to make sense of it. Florida for instance is a timing market because it has more volatility than a linear market like mine in Oklahoma City that is steady and predictable. One is not automatically better than the other but need a need strategy. You may also want to invest in both which I have done locally and in Florida. What you are looking for is what fits your parameters and for me it is primarily cash flow so slow and steady for long term returns is OK ,but a 10% appreciation per year I am experiencing in Florida helps me build wealth also.

Short Term Investment Properties: My wife and I like to hike so we started using a site called VRBO in Colorado to find something other than a hotel. So we got townhomes or condos with kitchens and multiple baths and for a reasonable price for a weekly stay. Both VRBO and Airbnb offer unique opportunities and we have bought in Florida this way with great returns. It requires more hands on self management but if you are up to it it can be a large return for you. It doesn't work everywhere but vacation areas and major cities are great for it. I have already booked a high rise condo for NAR in Chicago this year rather than fighting the hotel assignments. 

Out of the Country Investments: Talks about being careful, this is a major one to be on your toes. If you are not wealthy it is not probably for you. Recently my wife and I have been looking at buying in Costa Rica. it is a favorite country of ours and VRBO is big down there. This is probably something more suited to buying a second home and renting it out while yu are not there. The laws of various countries can bite you so if you decide to go this route bu ready to pay for professionals to help you and acknowledge that some countries are safer for investments than others.

FAG Where Summary: First of all the picture is the beach we walk to from our second home in Florida. The neat thing about it is that rental income pays for our second home and then some. It allows us to enjoy months of the year without having to pay for it other than the airfare and food. If I was just starting out this would not be what I would do, I would stay with the safest of investments your home town. There are exceptions to buying in your home town if you live in places like Palo Alto where a $2.5 million home is not all that special. You may like Oklahoma, or Texas, or Kansas where $160,000 goes a long way. Again, do you research, find the right agent, and be careful. Real Estate has enriched my life by owning a lot of it and experiencing high return rates. If Oklahoma interest you I can be contacted at joe@joepryor.com

 

Comments (5)

James Dray
Fathom Realty - Bentonville, AR
Exceptional Agents, Outstanding Results

Good morning Joe.  For our next outing my wife wants to spend a week on some island in Florida.  So I guess around February we will be making a trip where the weather is warmer

Jun 16, 2017 02:58 AM
Sheila Anderson
Referral Group Incorporated - East Brunswick, NJ
The Real Estate Whisperer Who Listens 732-715-1133

Good morning Joe. I think you really have a handle on this. It isn't for everyone but it can be a great thing.

Jun 16, 2017 06:49 AM
Myrl Jeffcoat
GreatWest Realty - Sacramento, CA
Greater Sacramento Real Estate Agent

Aw yes, the tactile part of real estate.  I like that too.  I often drive through town and reminisce about homes I am passing, and remember the details of the sales.

Jun 16, 2017 06:55 AM
Brian England
Vacasa - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

This is a nice discussion with regard to investment property, I can tell that you know what you are doing!

Jun 16, 2017 07:44 AM
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

Good Afternoon, Joe!  I totally agree with your points...and I love the beach photo and happy to hear that you're back with your bride and baby in FL!

I have clients who JUST sold their home in Costa Rica - they tried to sell that darn thing for nearly 4 years! The problem is, you can't get a mortgage there and their home was over $500K so, it made it next to impossible to find an international, $1/2M cash buyer!

Jun 16, 2017 11:53 AM

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