Virtual interviews, reference checks, and small initial engagements, like market analyses, help verify responsiveness and expertise before full commitment.For geographic diversification, markets with strong economic drivers and investor-friendly environments can facilitate team building.

I believe for the patient mostly passive RE investor that leveraged RE can do well but1) residential RE is not passive, especially compared to index funds and etfs.2) because non commercial residential prices are near an all time high, interest rate is near high for this century, rents are all time worse compared to costs (per 2 recent studies) that you would be entering RE at a challenging time and a time were most RE will not produce the returns that were easy to achieve prior to 2022.3) RE provides diversification, but may not far exceed the returns from passive options.  

It affects everything from housing demand to labor supply, which is why maintaining diversification across markets and asset types is so important.

I wouldn't have borrowed money to put into the stock market as the bulk of my net worth was already in stocks, so it was kind of a diversification play...and I wanted to see if I could make money not using any of my money...since the HELOC was revolving credit.I learned that I won't ever buy a rental house in my state again. 

At the same time, keeping a mix of different asset types is key; real diversification is the best hedge against whatever the economy throws at us.

With the market being more unpredictable, I’ve shifted from chasing appreciation to prioritizing steady cash flow and diversification across different properties.

The three ways to handle the risk are (1) gaining knowledge and experience in both investment in general and in the area you’re investing in specifically (2) extensive due diligence and when the inevitable bad outcomes occur despite (1) and (2) then (3) diversification.  

I like the idea of diversification of my investments and I love the strategy BAM has articulated: the focus on properties with below market rents in growing areas with jobs and good schools. 

Do you have no concept of diversification?

We’re seeing a lot of small-scale investors move into commercial properties this year for diversification, and I’d love to hear what systems have helped you manage tenants efficiently in multi-use spaces.