14 May 2019

[Real Estate Tip of the Month] Should You or Should You Not Be Buying in Your Market? Here’s a Key Metric You Should Be Tracking Very, Very Closely

NOTES: So Kathleen is basically talking about the ‘Housing Affordability Index’, which measures the percentage of people in the area who can afford the median priced home. It’s a number from 1-100, so the higher the number the better.

Big takeaway: Once the affordability rate slides down to 17%, you’re probably in a market that’s peaked, so you’ll want to be extra diligent in what and how you purchase any properties. And if you’re flipping, you really want to make sure you’re buying at a good enough price and terms so you can move the property, even at a discounted price.

This is a stat put out by NAR (National Association of Realtors), with each state chapter putting out their own statistics.

How do you find this data? A quick search on Mr. Google under ‘housing affordability index’ + ‘your city’ and ‘state’ will usually pull it right up for you.

30 Apr 2019

What’s the Most Reliable and Predictable Way to Make a Fortune in Real Estate?

What’s the Most Reliable and Predictable Way to Make a Fortune in Real Estate?

Identify and Invest in Emerging Markets!

A common question I get whenever I meet with a group of investors is…

So what’s the best way to make money in real estate?

Or some variation of that question… which is kind of a loaded one, right?

Because it depends on so many things, like your budget, your financial goals, your experience, whether you’re an active or passive investor, etc.

But one general thought always comes to mind whenever I’m asked that question…

In my opinion, the most reliable and predictable way to a make a lot of money in real estate is to identify and invest in Emerging Markets.

So what’s an emerging market?

It’s one that’s still a bit sleepy. Under the radar. And the image of it tends to be a bit negative… or blah.

It’s also a market where the general public doesn’t quite understand how or why that specific area is “up-and-coming”.

So what’s the #1 tip-off that a market is emerging?

Job growth.

And here are some characteristics you’ll typically find in an “Emerging Market”:

  • Strong pro-business / pro-growth local leadership
  • Tax incentives offered by the local government (tax credits, tax rebates, grant programs, etc.)
  • Public/private partnerships
  • Government-donated land or property
  • Well-diversified inflow of jobs coming in (health, financial, business)

If you’re seeing 2 or more of the above in a given market, it warrants you taking a closer look. If 4 or 5 of these characteristics exist, then you really should be doing a deep dive… and start looking into that market very, very seriously.

Because it could be your ticket to financial freedom!

If you’d like to hear more about the emerging markets we’re investing in, and would like to get Priority Notification anytime we have hot new investment opportunity, just fill out the short questionnaire at: Investor Profile Sheet