Today, perhaps as much as any time in recent history, requires real estate investors to understand Jason Hartman’s concept of being Area Agnostic™ when it comes to choosing investment properties. For readers new to the blog or those who might have forgotten, the general idea goes like this:
“Area Agnostic – An investment concept that is not focused on any one geographic area or marketplace but views anywhere and everywhere as equally attractive until proven otherwise. Rational investing requires that the investor not have pre-conceived notions, emotion-based partiality or non-analytical thinking that may exclude better opportunities elsewhere.”
Trust us, that last paragraph said a mouthful and might be the most critical piece of investment advice you’ve ever heard. The hard part about becoming Area Agnostic™ is it goes against human nature. We like to invest with what we’re familiar with, which, for most of us, includes maybe up to a 100 mile geographical radius. Say you live in southern California. One hundred miles doesn’t even come close to getting you into a local housing market that’s good for investment.
Do investors still buy properties in So Cal just because it’s familiar? Unfortunately, yes, and their portfolio will likely suffer for it. Let’s take a big picture view for a moment. Back up from planet earth about 100 miles straight up and look at the entire country from a bird’s eye view. While southern California property might be in the crapper, there are at least a few dozen hot spots where conditions are ripe for immediate positive cash flow deals.
Are you going to limit yourself, profit, and future financial independence just because of a stubborn, myopic world view? Please answer no. A common protest Jason Hartman often hears is, “I don’t want to buy a house I can’t drop by and check any time I want to.” Fine. There’s nothing intrinsically wrong with that desire, but would you rather drive down the street to check on a vacant house you can’t keep rented or cash the monthly checks sent from Phoenix, Arizona (or wherever) by your property manager?
If you happen to live in a good local housing market, it’s no problem to give into your human side and want to keep your investments within arm’s reach. If you live in a down local market, however, you simply cannot afford to be that shortsighted.
Become an Area Agnostic™ and start creating real wealth.
The Jason Hartman Team
