How local is real estate? I couldn't believe my eye

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How local is real estate? I couldn't believe my eye

Tan Mehedi
Engineer · Douglasville, GA · Member since 2016 · 90 posts · 31 votes
I know real estate is local. Question is how local ? Here is a story, I am a new investor from atlanta,ga. I found a awesome (Brandon turner word) deal in Macon, ga ( within 2 hours rule) . Everything looked great online ( national car dealership, red lobster, Olive Garden etc). I decided to do a road trip with the family to see the house and neighborhood last Friday because the seller said someone will close the house on Saturday and if I pay little more he will sell it to me. I got off the highway to a major road . This major road has big car dealerships, nice restaurants ( I was happy) . I was in front of a big national car dealership and my gps says I am only 0.1 miles away from the home ( I was excited) . But as soon as I took a turn from the main road to a small road next to the dealership I felt like I was in a different world. Lots of houses are boarded up, people are walking on the street shirtless only few hundred feet from the nice road. I didn't know real estate could be that local ( real estate books doesn't teach you that). Word of advice to any out of state ( or long distance)real estate investors , ALWAYS go visit the house and neighborhood.
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Joe VilleneuvePro Member
Plymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes
9y

First, Real Estate is NOT local.

Second, .....

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  • Joe VilleneuvePro Member
    Plymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes
    9y

    First, Real Estate is NOT local.

    Second, .....

    1Reply
  • Tan Mehedi
    OP
    Engineer · Douglasville, GA · Member since 2016 · 90 posts · 31 votes
    9y

    Hey Joe , real estate is as local as few hundred feet 

    1Reply
  • Diane G.
    CA · Member since 2016 · 1k+ posts · 1k+ votes
    9y
    For me, real estate as local as 2 hour drive... that is the max I would go.... That said, I am currently looking for my next purchase in a neighboring city that is 30 minutes from I live, and I ABSOLUTELY feel like I don't always understand why certainty properties are priced certain ways...
    0Reply
  • Mike CumbieBusiness Member
    REALTOR® · Brockport, NY · Member since 2015 · 3k+ posts · 4k+ votes
    9y

    With any investment you have to either know the product or trust someone that knows the product with your money. It does not matter if it is gold, real estate, stocks, baseball cards, coins, classic cars, Titanic artifacts etc. There is nobody that knows everything about their investments, but the successful ones have someone they trust that does.

    For example is this area having a big employer coming into town? Are there any highway ramp changes coming? How is the tourist industry there (Hotels? Waterpark, national forest, great fishing) Are they relocating a sports stadium closer? School just ended up on the top 100 schools list? Conversely is a big employer on a death spiral and been laying off 50% of it's work force over the last 48 months? Local sailboat races that use to draw crowds over a hundred thousand been cancelled? School falling apart and listed on the worst 100 schools in the world?

    That house could either be headed up or be losing value over the next 12 months. Find someone you trust in that area.

    Good Luck!

    0Reply
  • Andrew Johnson
    Real Estate Investor · Encinitas, CA · Member since 2016 · 3k+ posts · 3k+ votes
    9y
    Tan Mehedi My general philosophy is to let people I know/trust in the local market tell me what properties or areas to AVOID. Let them tell me "no" but never tell me "yes". Where I invest, there are a few streets where there's definitely a right vs. wrong side of the tracks. You could be maybe a football field away from a Starbucks and still end up in one of the few bad pockets. So even following the "follow a Starbucks" philosophy doesn't always work out so well. The time to drive or price of a plane flight is well worth it if you buy and an awesome ROI if it lets you avoid a bad purchase.
    0Reply
  • Account Closed
    Investor · Denver, CO · Member since 2016 · 736 posts · 582 votes
    9y

    I have three properties.  Closest is an hour and a half away.  The other two are either a 19 hour drive away or 16 hours worth of flights and connections away (no direct flights from Denver).  All three were purchased sight unseen (aside from photos).  I'm currently working on closing two more that are 13-1/2 hours away (or about a 26 hour drive from the other two). 

    It's as local or as far as you want it to be.

    I've found I prefer they are far away and managed by a property manager.  It keeps me from wanting to fix a problem myself and stress about it when there's an issue.  I let the property managers work their magic (that hour and a half away property is a $90-$95 round trip using IRS mileage rates....a handyman can do quite a bit for $100).

    0Reply
  • Bennie Coleman
    Macon, GA · Member since 2016 · 13 posts · 2 votes
    9y

    I live in Macon, GA - sounds about right. Drove past that area around lunch time.  The crazy part is if you go farther up the road, it is a nice area.

    0Reply
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