You seem to have some basic misunderstandings about what model coordinates and geo-location mean.
When you geolocate a model, you are telling SketchUp that the origin point of the model corresponds to the real world coordinates of the location you selected. When you select a region using the UI, that location is the center point of the image you grabbed from Google Earth. Also the image is oriented in your model so that solar north (that is, the direction of shadows at local noon) is along the positive green axis. You can subsequently rotate the north direction with the Solar North tool (optional extension), though that affects only shadows.
So, the positioning and orientation of objects in your model is not at all arbitrary if you intend to geolocate it. They must be placed in the model at the same relative locations with the respect to the model origin as they would be with respect to the geolocation coordinates and everything must be modeled at real size.
Edit: It occurred to me after writing the above that the image and terrain imported from Google Earth are just groups within the model. Instead of moving or reorienting the other model contents, you can move or reorient the image and terrain until your buildings lie where you want (provided you grabbed an area that covers your intended actual location so you don’t fall off the edge). If you rotate the image and terrain, shadows won’t go in the right direction unless you also rotate solar north.