Location. Location? Location!

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I have my hands in quite a few different Real Estate pots- but it seems like one thing is always the same.

"Where is it located?"

Its a Valid question but I have come to realize that it carries perhaps to much weight in the eyes of the majority of investors.

I live in Arizona and needless to say it is a competitive market. I moved here from South Dakota and many investors and property buyers I have worked with have been shocked when I tell them that in South Dakota +10% Cap rates exist in plenty for buy and hold rental properties and flip properties come available to me every week for under 50K. This got me thinking- why aren't more people doing these deals?

I moved to Arizona to expand to a 2nd market and currently operate in both markets but it is two completely different obstacles I face.

In Arizona- buyers are plentiful but finding a good deal is the difficult aspect of Wholesaling I face.

In South Dakota- Deals are plentiful but there is a massive shortage in people looking to pay for flips and cash flowing properties.

WHY?!? - Location.

I have people tell me they aren't familiar with the market and don't have the knowledge to make an informed decision. Ok- I get it- But in this business, the day you stop educating yourself and striving for more knowledge is the day somebody else passes you.

Why aren't more individuals looking to do deals away from the comfort of their home- if a property is cash flowing, makes money, and is appreciating- What's the issue.

We were all afraid to get into this business to some degree but once we start to get comfortable to many people are stuck in their comfortable bubble and won't step out to try and better themselves. I don't claim to know it all- or much at all really; but people who are serious investors looking for financial independence and a better life through Real Estate- I don't quite get it.

Would love to hear thoughts on this and why more people aren't investing in markets outside of their own. Obviously this doesn't apply to all investors but generally from what I have been seeing- this is extremely common.

Thank you and Happy Holidays!

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Hi @Will Fraser !

I appreciate your thoughts and I would have to agree most of what you are saying. We have all been guilty of following the crowd and doing what others before and above us have done that led them to their success.

My follow up question would be- We all want financial freedom and to live a better life for ourselves and our families through real estate. But to be a top 1%er more than just following an already traveled path must be done. Is it our simple and primal fear of failure that keeps most people from exploring outside their comfort zone- or is it people don't believe in themselves to succeed in anything else out there?

Not everyone was born to be a leader but I believe that everyone can step out from the crowd and take on a new lead in a unique direction if they choose to- but few do. I wish collaboration  in the real estate realm would grow and be used 100X more than it currently is. 

Not everything needs to be done by ones-self and I think that it takes a lot of hard work and the desire to grind every day for your goals. A mentor and leaders can help point individuals in the right direction but it is up to them to take the next step and really take their life into their own hands.

Thank you for your thoughts- and Happy New Year to you and your whole family!

Brady Aman