Is Relocating for Your Real Estate Investment Business the Right Move?

Should You Relocate to Pursue a Real Estate Investment?

Real estate investment offers the opportunity to build wealth, but it’s not without its challenges. I’ve talked to countless investors across the country, and the stories I hear often make me realize that some locations are simply not ideal for certain types of deals. As investors, we must consider not just the opportunity but the challenges of doing business in a particular area—whether that’s cumbersome regulations, high taxes, or a lack of support for new businesses.

In this post, I’m sharing my personal experience of moving from California to Texas in order to pursue a real estate investment in memory care. I’ll explore whether relocating for a real estate venture makes sense and what factors you should consider when choosing a new location to expand your business.

Why Relocation Might Be Necessary for Real Estate Investors
When my wife Laura and I lived in Orange County, California, we had a thriving real estate investment company. But as we wanted to build our first memory care mansion in 2018, we soon realized that California, with its high real estate costs and restrictive regulations, was no longer a place where we could achieve our goals. Moving became the best option for us.

Some states, like California, can be very difficult to do business in, with expensive real estate, overwhelming taxes, and high construction costs. The hoops you have to jump through for permits and licenses may not make sense, especially for smaller investors with more limited capital.

On the flip side, states like Texas have a reputation for being business-friendly, with more streamlined processes for building and permitting. For us, moving to Texas opened up opportunities that would have been almost impossible in California.

How to Choose the Right Location for Your Investment
While moving may seem like a drastic step, there are several factors to consider before making such a big decision:

1. Government and Regulatory Environment
Some states or cities are more business-friendly than others. It’s important to evaluate the local government’s approach to business—what kind of permits and licenses will you need? How long will it take to get them? Are there unnecessary restrictions that could slow your progress? For example, cities with long wait times for permits or excessive red tape could be problematic. In contrast, places like Texas (outside of major cities like Austin) offer a relatively smooth path for business owners.

2. Real Estate and Construction Costs
The cost of land and construction can vary widely from state to state and even from city to city. While you might find that land prices are sky-high in certain cities, other regions may offer significantly lower prices for similar properties. Similarly, the cost of building can be dramatically different depending on location, with labor and construction materials contributing heavily to the overall cost.

3. Labor Costs
Labor can be one of the largest expenses when operating a real estate investment business, especially if you're hiring caregivers or staff for memory care facilities. Higher wage areas may eat into your profits even if the rent in a region is higher. In Texas, for example, we paid our staff $18 per hour, which was significantly lower than what we would have had to pay in California. When you're comparing locations, it's crucial to take into account local wages and how they will affect your bottom line.

4. Cultural and Personal Considerations
Business success is not just about the numbers—it’s about being happy where you live and work. Relocating is a big decision, and it’s not just about picking a place with favorable regulations and low costs. You have to consider your personal preferences and lifestyle. Do you and your family like the climate, culture, and overall vibe of the area? You’ll be much more successful in a place where you feel at home.

Is Relocating Right for You?
If you’re in a state or city that feels restrictive and you’re struggling with permits, high costs, or business-unfriendly regulations, moving to another location might be the best option. But it’s not an easy decision, and it’s not right for everyone. Some people might thrive in a location with higher costs, while others might find moving across the country to be a game-changer.

Before making a decision, weigh the pros and cons of relocating carefully. What is the cost of land in your current area versus a new location? Will the regulations and permitting process slow you down? Most importantly, will the move provide the opportunity for your business to thrive in ways it couldn’t in your current city or state?

Ultimately, this decision comes down to balancing business factors with personal ones. If the business environment in your area is too prohibitive and you’re ready for a change, relocation could be the answer. But remember that relocating also comes with challenges beyond business—like adjusting to a new community and climate.

Final Thoughts
If you’re struggling to make a deal work in your current location, it might be time to consider relocating. However, it’s essential to approach this decision strategically—take the time to research different areas, their business climates, cost of land, and local regulations before packing up and moving your entire family. Whether you choose to stay or go, ensuring your business environment aligns with your goals and values will set you up for success in the long run.

Take it from someone who made the leap—sometimes, relocating can be the best decision for your real estate investment business. Just make sure that wherever you go, you’ll be happy and able to thrive both personally and professionally.






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