Importance of Having Boots on the Ground
Hey guys,
Just thought I'd add some interesting observations from being in the real estate business for 5 years and seeing over 500 transactions.
"Boots on the Ground"
Why is it so important to have people that you know and trust in close proximity to the areas in which you buy?
Several reasons come straight to mind. During the acquisition phase there are so many neighborhoods that make up a city. Far too many times do I see people or corporations try to pick out properties from just a numbers perspective without truly having an idea of what streets have value verse what streets are less desirable. It is truly important to have properties walked and assessed otherwise your numbers from a return perspective can be greatly diminished.
After acquisition, rehabilitation, and management occurs. How do you know who is doing the construction and how do you keep tabs on their progress? Referrals end up being the best source of dependability, however developing a long term relationship overtime becomes vital.
Lastly good old Property Management- As tenant management becomes the most important part of the ongoing cash flow, having an individual or team that is reliable becomes ever more important. The majority of turnkey properties I have seen have been invested by individuals outside of the state or even country. Make sure you have a well vetted out team on the ground to help with any and all unforeseen problems that may arise.
Dominique