I started investing in real estate 20 years ago and like most people I focused on my local market. The reason I did that was because traditionally thats what a real estate investor did.
At the beginning of my career the technology didn’t exist like it does today and my knowledge of real estate was based on my knowledge of my local market.
I experienced some great success locally but also had some real struggles. Overall, what I was lacking was an ability to identify and operate in markets that were superior to the market I was living in.
Looking back a lot of my early success came from my willingness to take risks. As I got older and my appetite for risk changed so did my criteria, I am no longer interested in an investment that does not have a definitive or predictable outcome.
As time went on, I noticed others succeeding while investing outside of their own neighborhoods. I was taking unnecessary risks locally simply because the market that I was investing in was not the best market. My strategy was right but my market wasn’t.
A lot of the pitfalls I experienced along the way could have been avoided if I knew how to choose the right market and operate and succeed in it.
Then a few years ago, I learned that when investing in real estate we are no longer tied down by geography. It’s not only easy to go into an out of state market, It often times makes sense.
When it comes to investing in real estate, my strategy today is to generate long term, passive and predictable income. I don’t speculate, develop new construction or fix and flip properties. Everything I do has a predetermined outcome and as long as I stick to my strategy my wealth will continue to grow.
With single family rentals I’m never nervous about changes in the market or economy because either way my strategy will always provide a winning scenario.
I always have the flexibility to monetize my investment one way or another. If its a sellers market and I want to access my equity I can sell the property. If the market declines I’m happy with the cashflow the property is providing me. That’s why I think choosing the right market for single family rentals can create the best and safest investments someone can make in real estate.
I literally poses zero of the skills needed to quantify a stocks value, but I always win when I invest in real estate.