Patience is a virtue.

Real estate investment has long been regarded as a crown jewel in the world of wealth-building. When most people think of investing in real estate, their minds go to names of multi-millionaires, old money that owns apartment builds, resorts, and hotels…

In the world of real estate investing, we see a lot of would-be investors come and go. Some were unprepared for the inherent risks and challenges while others threw in the towel the second the market didn’t produce obvious, no-brainer wins. 

The U.S. economy has been in a state of flux this year. Between the yo-yo of the stock market, a manufacturing slump, and the trade war with China, fears of a recession within the next year are not entirely unfounded. Different sources and economists tend to disagree on whether or not a recession is in the future — after all, the stock market is back to record highs after last month’s big scare. 

When you invest in something, you want to know that it’s worth your while. Regarding real estate, we live in a culture that romanticizes the idea of flipping. Turn to any home improvement channel and you’ll find shows all about sprucing up and reselling homes. On the screen, it looks easy. The idea of making tens of thousands of dollars on a flip just seems like a no-brainer.

There are many ways to invest in real estate. As an investor, you can take any number of paths and adopt varied strategies that suit your goals and your personality. However, there’s one variety of investing in real estate that always offers an advantage: self-directed real estate investment.

There’s a chance you’re rolling your eyes at the idea that anything is better than getting rich quick. After all, the sorts of schemes that make those promises have duped millions for years. They’re irresistible because they promise fortune without effort. The bad news is that they never work. Whether they’re secretly riddled with risk, run by dreamers wearing rose-colored goggles, or nefarious pyramid schemes, getting rich quick is never what it’s cracked up to be.

We’ve all heard the saying “the devil’s in the details.” Less common but no less true is the counter, “God is in the details.” It’s the idea that paying attention to small things has big rewards! The details matter, and it’s no less true when it comes to real estate investment.

With the rush of foreclosed homes on the market in the past few years, investors were jumping into the business from every direction.  Here in Memphis, the investment real estate market was booming due to the rush of foreclosures and most were caused by a slowing economy and not necessarily an over-heated housing market.  That created a scenario where not only were houses available, but renters were in abundance as well.

As the real estate market is now recovering, easy buys on bank-owned homes are becoming more scarce. Some investors are opting out of real estate because properties aren’t as easy to acquire. As serious investors knows, the real estate market will continue to change constantly over time. 

There’s a gleam in the big city that attracts investors. In a lot of ways, they’re attractive. Living in New York City is a dream for some people, as is settling down in big gleaming West Coast metropolises like Los Angeles and San Francisco.  Memphis, while it is a big city, is nothing compared to Dallas and Houston in terms or the size of the city.  Memphis is small city real estate and investors sometimes don't recognize it as a gem!

These big cities get most of the attention from investors and truth be told, you can go anywhere in the world and mention these cities and people know exactly where you are talking about.  Ask them about small and medium cities and the chances of people knowing about them get slim.  Real estate investing is about more than the name and size of the city.