Visiting Your Market

As remote investors, we just completed a visit to our target marking: Birmingham, AL. This article answers two main questions: why should I visit my market before I have a deal, and how best do I prepare for a visit? We will discuss demonstrating commitment and credibility, building relationships, expanding your network, as well as setting expectations to maximize efficient use of your time. At the end of this blog, we’ll share our BIG WIN from this visit…Visiting your investment market requires time, money and effort before you even acquire a property. Why did we spend $800 for a 2.5 day trip to our market? The benefits of my personal expense are more valuable to me than saving $800.

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Why should I visit my market before I have a deal?
Demonstrate Your Commitment and Credibility. There are a lot of out-of-market investors these days, nationally and internationally. When you visit your market in person, you demonstrate you are not just “kicking the tires,” and are committed to doing business in the market. Through your personal interactions with those in the market you demonstrate your competence as a real estate entrepreneur. People want to do do business and be part of teams with those who exhibit commitment and competence.
Relationships. Investing in real estate is a people business and a team sport. Relationships with your team members, particularly with those in your market, are crucial. I deepened relationships with real estate agents, lenders, property inspectors, and insurance brokers. Shaking hands, having conversations in person, and spending time over a meal, strengthens relationships in ways you cannot accomplish remotely. Spending 6 hours in a car with your agent/broker in your target market has a great effect on getting to know one another on a personal level and helps to refine your investment criteria.
Expand Your Network. When you deepen your relationships with individuals in the market and develop trust with them, they open doors to other individuals. During this one trip we added 6 additional professionals operating in Birmingham to our network. As they say, YOUR NETWORK IS YOUR NETWORTH.
Gain Firsthand Knowledge. You can and should do research on your market, but there is no substitute for seeing with your own eyes and getting boots-on-the-ground experience. You will understand the differences in sub-markets, identify areas for growth and development, and understand how the market and economic data sets translate into daily life for your tenants.
How do I maximize my time and money on my visit?

Purpose & Objectives for Our Most Recent Visit to Birmingham, AL

Draft a Purpose & Objectives. In order to have a successful trip, you must outline for yourself and others what you seek to accomplish—this will maximize your time. Your time as an investor is your most precious asset. You’ve got to be deliberate about how and where you allocate it. Sharing your purpose and objectives ensures that those you are meeting with understand what is most important to you, and sets the expectation for all future business interactions. Developing purpose and objectives will help you draft an itinerary of what is crucial to see and do as well as whom to meet. Ideally your agent can coordinate the itinerary for you—be sure to give them a few weeks lead time to schedule events.
Here is our BIG WIN: this trip resulted in us receiving our first “Off Market” property deal. Become a member to receive future content discussing how to find these deals and what I learned from this particular one.
So….when are you planning to visit your investment market?

Click HERE to visit our website and read about our entire journey.