Do you live where you work?
We often get asked if we invest (i.e. buy real estate) where we live.
The answer to that is a resounding NO. We live where we want to live and invest where it makes sense. That is the benefit of investing, theres no specific place you have to live to create passive income!
My J-O-B no longer dictates where I have to live. I live in Oregon and my Partner/brother @Chris Levarek lives in Arizona but we invest in North Carolina, Ohio, and, depending how negotiations go - soon Texas.
But also - I invest where it makes sense, and that is usually not where I want to live (at least right now). Why? Because markets vary from city to city, and even block to block, plus tenant/landlord laws, price point, competition, etc.
And we're able to do this because we have built a team and partnered with other professionals that enable this style of investing. We've built a team of partners that know the market, the asset class, that are professionals, and most of all - that we trust.
Over the last two years our team has grown from just my brother and I to multiple brokers, lenders, contractors, property managers, executive assistants, interns, asset managers, and so on. But I realize that every team is different.
So where are you investing these days?
Who's on your team that allows you to invest in this manner? And who did I miss?
Good to see another Oregonian investing out of state. We are building teams in Iowa and Illinois at this time. We also have a rental in Arizona and are doing a live-in flip here in Grants Pass.
@Ashton Levarek that's awesome. More and more people need to realize that if they have the correct systems and processes in place it doesn't matter where you invest. A lot of people feel the need to physically see their property. I ask these same people if they invest in the stock market. If they say yes, I ask them if they travel to the company they invest in and walk around and get to know the management and talk with employees. And of course they say "No, that's silly." And I respond, "Then why do you want to do that with you real estate investments?" Most of the time they look at me like I'm crazy.
@Sally Carr , I’m not sure i caught what type of investing you are doing or what exactly you need for a team in Iowa, but I’m located in central Iowa (Des Moines) and I’d be happy to provide any resources you might need for the area!
@Ashton Levarek , I think this is a great point, and very true for passive investors, which is the best comparison to the stock market comment Michael made.
For active investors, I do agree. But I think having accessibility to address issues as they arise is also important. This does not mean living in the same city, but it is a reason I prefer to invest in areas with direct flights (or at least used to have direct flights before COVID). If I ever needed to get to the property, have an in-person meeting with brokers, managers, etc, I can get there with less headache to address what is needed.
I do live where I work, but that’s only because my work involves research and experimentation in a chemistry lab. I invest, however, where I see opportunity to have a positive impact on the local community that can also provide a decent return on investment for me.
I currently live in East, TN, but have an out-of-state investment property in Durham, NC and am looking for more opportunities there and in East TN. I’m also a passive investor on one of Ashton and Chris’s multifamily syndications in Fayetteville, NC. I like the team they have built and am excited to see how things are progressing. Keep up the great work!
@Cameron Lee Brown great points. For me, I happen to live in Florida and invest in Florida, as there are plenty of attractive markets for investment opportunities . Years ago, I lived in California, and if I had invested then, I probably would have sought other markets.