Out of State: Balancing Team Building vs. Diversification

3 Replies

Hi all, hope everyone is having a great start to the week.

After reading a lot of posts on diversification, I'd be interested in hearing out of state / remote investors' thoughts on balancing the effort+time it takes to learn an area and build an effective team there with the desire for diversifying their investments across different regions or states.

I'm sure people have approaches all across the spectrum, but I think it'd be really insightful to learn about your experiences, both good and bad.

Ben.

I've been investing out of state for the last 3 years from LA.

I have 5 teams in 5 different cities and it has been going well.

It is a difficult balance between diversification and focusing. It's hard and you don't want to spread yourself too thin throughout all of these different cities.

I'd be happy to jump on the phone with you to chat more.

Antoine Martel

Thanks @Antoine Martel , I think that's kind of what I expected. No major questions yet as I'm just getting started, but since the places I've been looking that can cashflow aren't exactly dense urban centers, I'm getting skeptical on how many deals could really be done with the same team(s) there. Given how hard it is to find good deals, I feel like it'd make more sense to cast a wider net, so to speak.

Originally posted by @Ben Y. :

Thanks @Antoine Martel, I think that's kind of what I expected. No major questions yet as I'm just getting started, but since the places I've been looking that can cashflow aren't exactly dense urban centers, I'm getting skeptical on how many deals could really be done with the same team(s) there. Given how hard it is to find good deals, I feel like it'd make more sense to cast a wider net, so to speak.

 It makes sense to cast a wider net but I have been people go into real estate full time because their net was so wide, but they eventually had some projects go south which then tanked their whole business. They recently went and had to get a full time job again.

So that is why I like to not cast such a wide net. Instead I like to find teams that I can grow with and drill down really deep with those teams. 

Antoine Martel

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Join the Largest Real Estate Investing Community

Basic membership is free, forever.