Thankfully, this also means that you, as a turnkey investor, don’t have to go through the painstaking process of selecting an investment market from a near-infinite number of options. We’ve narrowed down your options for you.
However, even for a passive investor, there’s so much value in getting to know your market. It may surprise you just how beneficial being in-the-know can really be.
It’s not all about knowing statistics, demographics, or numbers, either. We’re talking about knowing your market intimately and personally.
The vast majority of our investors are out-of-area versus investing locally. Because of that, our investors don’t often have an extensive knowledge of the markets that they’re investing in. They can do research or visit, but it can be difficult to really get to know the markets in which they invest.
But is it really worth the effort? We think so.
When you get to know a market through firsthand experience—visiting, vacationing, or through more in-depth research or following the local news—you make a connection with that place. You’re putting your finger on the pulse of the market. Following the local news, once you have a sense of the geography and overall context of the market, is one of the best ways to do this long-term. You can keep up with the climate, the community, economy, and overall atmosphere. You can know what direction things are headed simply by keeping your ear to the ground.
Remember, things like the local economy and job market directly inform the real estate market, and these are regular topics in the news. So just by keeping up with news, you should be able to get a fuller picture of the health of the real estate market as a whole and where it’s headed.
Related Article: The Myth of Hands Off Real Estate Investment
Another huge advantage to actually investing time into learning and following your specific market is the ability to discuss your investment market. You can not only talk about your specific investments but the market itself and the opportunities therein.
Whether you want to discuss the market with your turnkey provider, other investors, family, or friends, arming yourself with an extensive knowledge of your market allows you to carry an educated conversation about your investments that go beyond your specific properties. This allows you to exercise more control and expertise.
Knowledge is always a salve for anxiety and fear. If you find yourself feeling lost or concerned about the direction of your investments, dive into your investment market. Learn all that there is to know, both on an objective, statistical level and on a more personal, subjective level.
Knowing your market will make you a more confident investor, period. You’ll be able to talk about it, you’ll be able to make more informed decisions, and you will be able to weather storms knowing the market’s patterns, history, and trajectory. Having this knowledge is essential if you are prone to anxieties!
When you get personally acquainted with your market, you’re not going to fall for the rumor mill. In a culture that likes to catastrophize, separating the truth from rumor can be challenging. If you’re in tune with your investment markets and carrying a closer relationship with your turnkey provider, however, you’re not going to fall for fabrications.
Lastly, taking the time to engage with the markets you choose to invest in helps you invest more fully. While passive real estate investing is supposed to be just that—passive—taking the time to learn about your markets, visit them, and care about them and the people in them is so critical.
When you as an investor begin to care about more than just your own success, but about the quality of the services you deliver and the communities that you serve, that is when you will truly flourish as a real estate investor.
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