- Post number 42 (I lost count) - what !!! Have I finished this week? Is it possible to get an extension?…
- Post number 42 (I lost count) -
what!!! Already finished this week? Can I get an extension? I'm just warming up. I still cook the very important posts. So far it was just a teaser?
** Lots of properties in one area or investment diversification - which is better? **
Many investors think it is right to diversify investments between several regions, such as Chicago, Dallas, Tampa and Pittsburgh.
It is true that in terms of dispersal of risks it is very much the condemnation to act in this manner and not to purchase a large number of assets in one metro. After all, what will happen if there is a big problem in the local economy?
But it is important to understand the consequences of such a move. If you plan to buy a number of properties in the US I recommend, from personal experience, to consider not scattering too much.
Investing in several areas means that in each area we will need to build a local “infrastructure” that will support our investment such as a property management company and other suppliers.
Each time a new property management company integrates, it will have control and control implications that include time, attention, and energy (and certainly nerves). Each asset management company has different processes, different conduct and different rates.
My recommendation is yes to consider geographical dispersion when it comes to investments, but instead of scattering with one or two properties to one area across five different regions, I would consider a concentration of five properties to an area across two different regions. Of course as long as the investment justifies itself in the area where you are already operating.
In addition, there are some advantages to staying in a small number of areas:
Purchasing power with the management company
- Efficiency and cost savings when traveling to visit the property (s)
Link to the original post in the United States Real Estate Forum on Facebook - Works on a desktop computer (To view the post must be members approved for the forum)
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Strongly agrees. Now scattered among 5 properties in Columbus and another 3 in West Virginia - it protects against drastic changes in weather or property prices - but is really easier when there is a maintenance team in each area separately.
Can attach another recommendation - it is recommended to be a few hours apart only if you have a serious cannon in the maintenance team that can be moved in case of urgent or major repair.