What are the best U.S. cities for launching a real estate investing business in 2014?
This year holds large expectations for real estate startups of all types. Entrepreneurial spirit is stronger than it has been in years. Moreover, statistics from Bloomberg show growing confidence in new home construction, consumer spending and hiring. Mortgage lenders have clearly become bullish on the outlook for booming home equity. Each of these signs are encouraging.
However, where investors decide to set up shop can make a significant difference in the level of success they experience. There are always exceptions for those that are ambitious, but it’s not hard to see how location can be a major factor. After all, real estate investing is about “location, location, location.”
There are real estate investing deals to be done all over the country, no matter what strategy is being deployed. However, today’s investors are increasingly investing out of their area. They are making a point to diversify for security and to maximize investment returns.
Location can make a difference in networking opportunities, access to capital, cost of operating a business, who will be interested in investing, immediate market size, brand perception and more.
Carefully consider taxes, communications, travel, living expenses and who your potential clients are when choosing a location to set up shop. For example; it may mean little for some investors to double their investment income if their living and housing expenses triple. In other cases, it can pay to incorporate a destination which is trusted by the bulk of primary prospects.
Obviously, many real estate investing pros are looking for better spreads. This could certainly come in locales with the most in-migration and business growth. Those areas demonstrate an increased propensity for demand, transaction volume and home prices. So where are these cities?
Tech journalist Alexis Caffrey, who writes for The Next Web and SalesForce, reported that some of the top U.S. cities attracting startups include: Kansas City, Seattle, Boulder, NYC, LA and Atlanta.
Again, there are many factors to consider when choosing a city, but there are also several ways to choose from engaging. Should you scoop up the best slice of prime real estate you can and work from a swanky new home office, grab a highly trafficked retail storefront, take out a lease on some expansive office space, negotiate a cubicle in a mortgage company’s building, join a co-working space or simply stick to a virtual office? All of these could be great options. It is entirely dependent upon your strategy.
Where will you expand your real estate investing business in 2014?