I mean honestly, how many times do we have to read about the poor investors/sellers who got waaaaaaayy ahead of themselves gobbling up property in out of state markets, and have now been left holding the proverbial "bag" of real estate inventory? 

Believe me folks, the lesson to be learned is clear: Real estate happens at a local level, right down to individual suburbs and neighborhoods. I've had this whole nagging thought on my mind as I am reading a newly released book by National Assoc. Realtors Chief Economist, David Lereah. Titled "All Real Estate is Local", he hangs the whole concept right out there for us to learn from.  He comments that "real estate markets are NOT fair and equitable."  Amen to that!

Take for instance, the out of town For Sale By Owner.  This individual leaves their long time home of say Las Vegas, NV, and moves to Reno, but hangs on to the home as an investment in Vegas.  A few years down the road, this person decides it's time to "cash out" of Vegas and move on, so they make a weekend trip to Vegas, buy a sign at Lowe's, and place it in the yard, and return to Reno. (only to be bombarded by agent calls of course!)

Now what is wrong with this picture? It is NOT the fact that they are selling by owner. They have that right and I respect it. What is WRONG is the fact that they are SO FAR removed from the local market dynamics, trends of "in" and "out" migration,  Employment & new business trends, etc, that they can't possibly truly understand how to best defend their biggest asset! What's worse is when this individual mentions to inquiring agents that they themselves are agents and that they "know how do do it." 

"Having experience" doesn't majically make you a local and instantaneously provide you "on the ground" insights into a given market. Nor does reading a few articles online, or even having a "buddy who is into investing" in that area. 

There is no better way to build wealth than real estate, but do your homework. Get some professional, local advice. Go to Amazon.com and order "All Real Estate is Local." You'll be glad you did.  Because guess what?..........it is.