With the development of technology, real estate investing has changed. Before, it used to be that you could only invest in your own real estate market unless you had contacts in other areas. But with the strength of the Internet, investors can get involved in markets thousands of miles from their home.
But what is the difference between the two? Here are the cases for investing locally and virtually.
When investing locally, you tend to have a better scope of the market. Not only are you more familiar with the area, but you also have a better idea of what the going rate is for both rental properties and homes within the area.
Furthermore, you can connect in person with locals more easily. You can develop personal connections that may be truly valuable when it comes to finding vendors. That’s not even covering the fact that you can physically drive to the property, meet with the seller, and look around.
Simply put, you can get a greater sense of the property by being able to physically see it. Investing virtually does not offer that same peace of mind.
When it comes to virtual real estate investing, flexibility is the name of the game. With local investing, you are limited to that market. Whatever the offerings are, those are your potential choices for investment. You are not nearly as limited in a broader, virtual market.
There is also the possibility of connecting with fellow investors, vendors, and so on, from across a wider scope. Virtual investing can result in a much broader scope of connections than could be had in a local market.
Of course, the biggest downside is not being able to see the property up close. More and more virtual investing platforms have virtual walkthroughs, so it is not like you are going into the investment blind. But it is not quite the same as being able to see a property up close and in person to make your assessment.