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Real Estate Investing: A Global Or Local Scale?

Published on Tuesday - June 17, 2014

Should today’s real estate investors consider investing on a global or local scale? Many real estate investors and investment companies have found themselves facing this dilemma on a daily basis. Volumes of investment and business advice have been published, arguing both sides of this debate. Solo investors and real estate company CEOs have been hammered with the value of staying local, and the advantages of going global. So what’s the smartest move? Is the best strategy all about striking a balance?

Real Estate Investing Strategy for Maximum Rewards

Obviously, the decision of whether or not to invest in a global market rests with the goals of each respective investor For 99% of investors in the market today, the answer will rely on which strategy delivers the maximum rewards. However, this is not always the case.

There can be enhanced profitability, reduced risk, and operational efficiency found in staying close to home. Those in major metros like New York, Miami, Atlanta, Dallas or San Diego will probably find that there is more business out there than they can handle. For many others, one locale simply doesn’t offer a large enough market to fulfill all of their income, wealth and volume goals. This is especially true for those in smaller towns and more rural areas. If only a couple hundred homes change hands per year in your area, and you plan to flip 30 houses a month, you’ll have to widen your net.

Diversification, on the other hand, will coincide with many other benefits. It can reduce risk of loss and the impact of unexpected trends. It can provide more consistent returns and potentially help see larger gains with the right timing. This doesn’t necessarily have to mean investing outside of America and taking on undue risk, but could be achieved by dipping into a few different geographically areas within the United States.

However, do not forget to calculate local investing factors like helping the local community and benefiting from better investment decisions and operational profitability from having expert local knowledge.

Real Estate Company Branding & Positioning

Brand positioning shouldn’t be overlooked. Being seen as the local real estate expert can carry a lot of weight when it comes to real estate marketing response rates and conversions, as well as the premiums that can be achieved and partnership and referral relationship deals which can be struck. It can also help build a more valuable brand, which can be cashed in on for more later on.

Still, truly savvy and educated customers will often look for an expert or brand which has broad knowledge and experience. It is important for credibility, and signals less bias than someone with only one product to push.

Real Estate Marketing

Even after determining the above, investors and real estate company executives are often left with the question of whether or not to going global will help their situation. This can apply to everything from website design and content, to SEO and keywords. There is a lot more that goes in to marketing to an expanded audience.

Staying local can offer benefits that range from a more focused marketing budget to brand dominance. However, going global can reach others out of the area who could be prime prospects to buy, sell, rent, or invest money in. Each has their own pros and cons, but your decision will likely be decided by your goals and aspirations.

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