LOCATION, LOCATION, LOCATION WHERE TO BUILD YOUR PORTFOLIO OF INVESTMENT PROPERTIES JEAN NORTON
Busy roads with public transportation nearby.
varying cultural issues in many parts of the country,
Sometimes you just can’t help it, but when looking
and some areas I will never invest in again, just
at a particular property you need to weigh the issue
because they don’t align with my business style and
of a busy road being a deterrent especially for
there are plenty of other areas ripe for my investing
families with kids and pets, or determine if it’s an
dollars.
ideal location for those that depend on public
transportation. This is an issue you need to weigh
5. Diversify
in your mind. My first choice
Much like your investment
is to avoid the busy roads,
advisor
suggests
however if it’s in a stable
investing
in
and growing area, and
market,
priced right, you may find
creates
benefit where others would
investing
avoid.
Don’t invest in your city just
the
for
stock
diversification
a
more
stable
environment.
because that’s where you
Rural areas more than 100
are comfortable. Get out of
miles from an airport. The
your feeling the need to
fact
residence
touch and feel your product.
demand is waning. Avoid
Much like the stock market,
unless it’s in a sweet
you don’t tour the corporate
vacation spot and even
headquarters to determine if
is
rural
then, evaluate your investment tolerance as those
you are going to buy shares of that stock. Investing in
types of investments have peaks and valleys based
real estate is no different. You look at the market, the
on seasons, and again the current economy.
return on your investment, the risk tolerance for the
area, how does it align with your investing strategy
Demographic Culture This is one of those “soft”
and how it aligns with your goals. This may or may
concerns I have. Part of what you have to do is get a
not be in your hometown, but limiting yourself to
good team in place. I recommend having local
where you live is a risk in itself.
property managers and other support systems in
place. They have to have the same work principles
These thoughts and issues just give you the platform
that you have, or you need to recognize the
to determine how to build your portfolio. Once you get
differences. For example, I’ve found the work style in
comfortable with these topics, you can continue to
Chicago a little frustrating for me because it’s either
add other investment vehicles to your portfolio such
“too cold” to work or “too nice” to work. That is a
as short term renting, commercial investing, and other
minor irritant to me as I have complementary resources
businesses that are associated with real estate such
helping me to get projec ts done. I’ve experienced
as senior home care, mobile home parks and more.