Seldom Asked Question #3: Do I stay in one market?
By Robert Orfino
Do I stay in one Market? This is a question only you can answer. If you are a 2 to 3 properties per year, Mom and Pop, hands on rehabber, then staying in your backyard would be to continue to follow your niche. Most real estate investors however, are not the swinging hammers type and therefor, need to go where the deals are. After doing all your due diligence to locate the region that match the kind of returns you require to stay in business, visiting the region and getting a deep understanding of the particular market is extremely important.
There are always markets at their peak and distressed markets, sometimes occurring simultaneously. The ability to move between these markets is what separates a side flipper from a bonafide investor. Partnering up with someone who has lived in the area for many years with systems already in place tailored to that region is always your best bet since they already possess the knowledge of the local market, saving you months of mistakes and learning curves you would have to face flying solo.
If you chose to enter a secondary market I would advise personally visiting the area a minimum of 2 times. Bring the systems you already have in place to your new market and adapt them as best as you can. Putting a strong team in place before you take any steps forward is crucial to the success or failure of your business. Having your RE investments in a region in which you do not reside will mean the strength of your team will be the make or break component of your business. Extra attention to detail is of vital importance when investing in secondary markets. This will save you many sleepless nights as your investment funds sit far away from home.
Robert Orfino, 2017