Long distance relationships get a bad rap. They’re complicated, messy and simply don’t work, right?
When it comes to real estate, however, distance is a good thing. Why? Think about it in terms of farming. Real estate investors grow wealth; farmers grow food. Successful farmers usually live apart from their farms (even if it’s just half a mile down the road). Gardeners grow their greens in their backyards. Gardeners see their crops from the windows of their homes and, therefore, think about them often. If a plant looks like it needs watering, or a weed has cropped up, the hobby gardener is there to tend to it. Their gardens are well cared for and beautiful, but they’re not usually cost effective or all that large. Farmers, on the other hand, implement systems of planting, watering and harvesting that produce profitable and bountiful crops. At the end of a day’s work, farmers get to go home and recuperate. It’s a good thing.
Distance Gives You Options
When you open up to the idea of out-of-state real estate investing, you open yourself up to lots and lots of options. The area where you live might be expensive or the fundamentals may not be as sound as you’d like them to be. Property taxes in your town or state could be much higher than you’re comfortable paying. Investing from afar can substantially increase your return on investment (ROI) and allow you to buy more properties than you could if you kept it local. When you start fishing in a bigger pond, you catch bigger fish.
Distance Creates Perspective
You know how when you’re in an airplane, you get to see the bigger picture because you’re far away? Out of state real estate investment is similar to that. When you’re not caught up fixing holes in walls and screening new tenants, you can look at the fundamentals of your business. You see how each property fits, or doesn’t fit, into the greater landscape of your portfolio. You look at the numbers, the profits and your bottom line, not the small problems a property manager could easily resolve.
Distance Makes the Heart Grow Fonder
The old expression rings true…when it comes to investing in real estate, distance really does make the heart grow fonder. When you don’t have to see something every day, it’s easier to enjoy it. When something goes wrong, you’re not tempted to drive down to look at a problem yourself, because you can’t…it’s too far away. Buying out of state puts a healthy distance between you and your investments and minimizes your level of burnout. Having a diversified real estate portfolio makes your life easier and more enjoyable.
The distance farmers have from their work is key; distance prevents farmers from getting slowed down by small, unimportant details. In real estate investment, put some distance between you and your work. Be a farmer, not a gardener. Don’t be afraid of a long distance relationship. Reap the bountiful harvest your work deserves!