Unexpected Real Estate Strategy: The Power of Knowing Local Trends

Stories float all over HGTV, various Real Estate Investment (REI) blogs and in local groups of the fabulous returns people can make on their REIs. Yet, most of those who pursue the typical strategies “as seen on TV” find themselves, at best, breaking even on their earliest attempts to invest. After a couple of attempts and limited success, many grow weary of the work required and the lack of performance.

When it comes to the overall field of options available to investors, there really is no specific number. But if you are thinking in terms of flipping houses for profit, like any other strategy, the truth and the knowledgebase required to get that done does require some coaching and will likely take some time to acquire.

I have specialized in the single family residential construction side of the REI biz. I also live in a metro area that has experienced an unusual level of growth during a time when much of the nation has languished. That popularity has brought some of its own challenges, scarcity being the biggest. So one successful option is to determine what the local RE environment is demanding. This can be a highly effective strategy.

When flipping houses, especially if you are starting with an empty lot or a ‘scrape and build new’ circumstance, take the time to study not only the immediate environment but also the most likely customer who will also pay the highest price for houses in the area. Most neighborhoods are very sensitive to specific style and level of finish, yet some are not. In fact, in Austin Texas areas that used to be very marginal places to live have become opportunity zones for new development. New, very modern homes are going up in 60+ year old neighborhoods containing largely cottage-style homes.

So it is essential to work with a real estate professional who is Very familiar with the neighborhood and community where you want to work to maximize your potential for success.