Many of our readers are looking for advanced real estate investing tips! This is one of my TIP TOP tips…live where you wish but invest where it is best.
When I got started, like most real estate investors I was investing in properties within a 20 mile radius of where I lived. As a newbie investor, I learned many strategies on how to acquire properties. I also learned how to structure deals that would be beneficial to my investment needs. Further on I learned how to buy properties with a value play. All this experience was great and I thought I had conquered everything I needed to know to get the best real estate deals available.
You see, I started investing in an era when late night infomercials were dictating investment strategies. In order to be able to sell their information to a broad audience, they drove the point home that you can do these strategies in ANY location anywhere. While this is a little disingenuous, there IS an element of truth to it – when you get educated AND you take action, investment strategies will work anywhere.
Introducing the global real estate investing market
My big epiphany came later… just because you can acquire an investment with any particular investment strategy and make it work, still does not mean that you have acquired the BEST investment. Just because you are able to get cash flowing investments that match your investment return criteria, does not yet make this a great investment. The big missing piece of the equation for a great investment was sustainable cash flow with an element of capital growth built in (if you have not already read this article you will want to read it now!)
Live where you wish and invest where it is best
Moving from the cold state of Minnesota to Florida in the fall of 2003, the markets were booming. I left dozens of investment properties back home and turned them over to property management. I was now living the dream. My wife and I have arrived in the most highly sought after state for enjoying life (the sunshine state) full of beaches, golf courses and activities. I am now living where I wish.
I suddenly noticed however that I was unable to invest in any properties that had any financial merit. The cap rates were running 3 to 6% and I stopped investing. Trying to figure out why there was such a dynamic shift from Minnesota investing to Florida investing intrigued me big time. I began to study markets and learn why the big shift. Then suddenly the financial collapse – the real estate collapse followed by a global financial break down, it appeared all hell had broken loose. Yet I saw markets that throughout the country that were making investment sense.
Fast forward 9 years, and during that time I have interviewed Harvard graduates and economists all over the world. What was uncovered are some of the best strategies used by the Donald Trumps and the Warren Buffets of the world. Invest in the best locations to get the sustained cash flow and the best opportunity for capital growth and your investment returns over time will increase exponentially.
I no longer settle for good returns on cash flow, I want the best investment available. Doing diligence to uncover the best locations for real estate investing should be your number one priority when investing in real estate. This is why I coined the phrase, “Live where you wish but invest where it is best”. As an investor, if you too want the best investment do not settle for anything less than the best locations. We have a huge planet here and only a few people actually reside in areas that represent the best locations. For the rest of us we want to follow the money. Follow the best locations.
Give me a call today 941-718-7761 to discuss some of our advanced real estate investing tips or check out our already vetted prime Strong Cash Flow or Cash Flow and Growth real estate markets.
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