How scary is moving to a new market?

Question

I am currently in the Cleveland, OH area and I have a solid team for my real estate investing company. Realtors, Contractor, Designer, lenders, appraisers. To the point where once I close on the purchase, I can walk away to the next one.

That said, I am considering a lifestyle change and a move to a new area entirely. Although I am confident I could continue my work in Ohio, I am concerned about being able to start again in a new market and find the people to build a team I can trust.

Have any of you ever done that? Am I worrying about something I really shouldn't be?

Andrew Weiner · Answer

I would think about maintaining Cleveland while standing up a new team in your new market.  If the distance management is too much then you can let go of Cleveland and focus on your new market that you have already started rebuilding in.  If the remote management turns out to be easy then you now have market diversification which is fantastic.  I do know a few people that have maintained remote businesses successfully, they fly in a few times a year which is not a big deal for them.  The biggest factor is personality, if you are okay with out being on site and watching from a computer screen then you might do very well with this, some people need to be on site and have the in person interaction for their mental health.  Good luck and I hope the move is successful!

Account Closed · Answer

I'll just mention that different regions can have different cultures and ways of operating and communicating, etc., that can add to a learning curve.  For instance, when I moved from the SF Bay Area to TN many years ago, it was really challenging for me to learn a slower way of life and I never did really feel at home, even though I lived there for 5 years and got married there.  Some regions aren't friendly to "outsiders."  Also, a small mountain town in WA I moved to, where my daughter grew up still considered some people there "outsiders" even though they'd lived there for 20+ years.

I ended up figuring it out and made good friends in both places, but it was challenging.  You didn't mention what region you were considering moving to, so maybe it will be similar enough culturally or a big enough town that it won't be an issue.

My first reaction to your post was - No!  You've got such a well-oiled machine, why mess with a good thing?  But, some people enjoy the challenge of building a machine.  I agree with the others who suggested you try to keep your current team, too, if possible.  I get wanting a new challenge, because I was like that, too, but I wish I would have just stuck with some of the good things I had going, that I quit out of boredom.

I admire what you've done and wish you the best in whatever you choose to do next.

Drew Nashmy · Answer

Sue, what a thoughtful response! I truly appreciate the insight and you sharing your personal experience. I have moved many times in the past, and have fought the bug for a very long time. I have been in Cleveland for over a decade now. I understand your point(s) especially about being an outsider, people around here still know I am not from around here, as well as life style/pace. I lived in NM for a short period of time and never got used to how slow things were!

David Robinson · Answer

@Drew Nashmy I am sure you will make connections in the next region you decide to move. If you connected and created a team once, you can do it again. Bee yourself and people will see you know what your doing and you care about the team as much as you do about the deal.

James Wise · Answer

Whenever you are buying a property in a new market you should save this punch list. Will help you mitigate your risks.

• Don't buy in the roughest neighborhood in the urban core. Pick a solid B-Class suburban area. Perhaps a nice 1950's built bungalow.
• Always hire a 3rd party property inspector to give you an unbiased feel for the home. The reports are 40-90 pages long and go through the entire house in great detail.
• Get an appraisal. If your using financing the bank requires this. This is good. The bank isn't going to let you blow their money. They have more skin in the game then you do.
• Make sure you get clear title. If using a lender this is a non issue. They will make you do this. It's those maniacs that buy homes cash via quit claim deed off of craigslist that really get screwed.
• Make sure your property manager is a licensed real estate brokerage.
• Google Clayton Morris and/or Morris Invest for a cautionary tale of what not to do when buying turnkey real estate
• Understand you can not eliminate all risk, only mitigate it. If you are risk averse, real estate, (especially out of state) is not for you.

Remington Lyman · Answer

Yeah once you set you team up you should be able to do this pretty easily

Ryan Evans · Answer

If anything, establishing a team in a city where you don't live in is the real challenge. If you make the move to a new city you'll have to put the time in to test people out and do some networking, but you know the business so you should know exactly where to put the focus to be up and running before long.

Brandon Goldsmith · Answer

Building a team the second time around should be easier to pinpoint what qualities you are looking for right away. I don't think the market and distance should matter as much as long as you already have an understanding of what a complete and efficient team of a lender, realtor contractor and PM looks like. Best of luck! @Drew Nashmy

Darius Ogloza · Answer

You are.  You have proven you can create a team.  Geography may change costs/prices but not how to put the basic package together.

Drew Nashmy · Answer

Andrew, this is a fantastic idea and a great way to look at geo-expansion.

How scary is moving to a new market?

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