Want to know the HOT Real Estate Markets where Smart Real Estate Investors are looking?

Want to know the HOT Real Estate Markets where Smart Real Estate Investors are looking?


A seasoned real estate investor never worries about real estate cycles. When the market is flat in their hometown, it’s up in another. A good REI knows how to spot the trends.

Let me give you an example. Several years ago, the Midwest and Southeast were flat, and in some cases stagnant. But money was flowing into Florida and the West Coast. Homes were being snapped up by investors, which led to increased prices and a real estate bubble that expanded.

Commissions increased, fees increased, taxes increased and the local economy exploded in areas like Los Angeles, and Orlando. As prices increased on the Coasts, the good feelings slowly worked across the country. Cleveland was a hot market, Chicago and San Antonio started to experience increases.

Think of real estate trends like a flowing wave. It flows from one area of the country to the other.

An experienced REI moves in behind the wave and snaps up bargains after the bubble bursts. Learning to time the waves takes the wisdom and experience of a surfer watching the ocean. But the learning curve is short. Once you create a simple automated system and put it in place, it does all of the work for you.

Let’s examine five of the hottest markets for investing over the next year. These are areas of steady growth, and perfect investment vehicles for REHABBERS and BUY and HOLD INVESTORS.

Dallas is a great market for any type of investor. The annual increase in the value of real estate is holding steady at 4%, and the sheer volume of older homes in areas around downtown means a number of bargains for the enterprising REI. Dallas experienced tremendous growth in the late eighties that ended in a burst real estate bubble in the 90’s. What that means is an incredible amount of houses built during that boom are now twenty years old or older.

A smart investor can NEGOTIATE a good deal on an older home, effect improvements and cash in on FORCED APPRECIATION. Also, twenty year old homes that were not kept up will have lower or no first mortgage balances, which makes them prime candidates for negotiation or OWNER FINANCED PROPERTIES.

A smart REI will use their time to become better educated about the market they plan to dominate. One of the tools an REI can use is a guidebook that shows step by step instructions on setting up a marketing system that will send both sellers and buyers to their pipeline.

Besides Dallas, Mobile, AL is a great place to consider investing. While a lot of factories are moving operations overseas, Mobile has landed two big industries that will bring thousands of dollars into the area. The median price of a 3/2 is under $100,000, so it’s a perfect market for a BUY and HOLD REI. The market wave is rolling across Alabama like the Crimson Tide!

A smart REI won’t get the blues in Memphis, TN if they decide to invest there. Memphis is experiencing population growth, steady unemployment and a better than average growth in home values. It also has an abundance of older homes in need of REHABBING. This market is an excellent source of homes that can be bought for 54-65% of their market value. This creates a situation of positive cash flow for rentals, or pre bubble run ups in values. An REI looking for a cash out opportunity won’t go wrong in Memphis.

Another Alabama town experiencing steady growth is Birmingham. Home to 3 colleges, and an educated work force, the city of Vulcan is poised to continue growing at a 4-6% rate. Average home prices are low, with plenty of bargains to be found.

It may rain 300 days out of the year in Seattle, but the climate in Tacoma, WA is perfect for an REI. It’s got every ingredient for the formula to succeed. Solid work force, great growth potential and bargains for the smart REI. It also enjoys an influx of white collar jobs as executives flee from the confines of Seattle.

It’s the Southern Belle of reality television and smart investors know it. Charlotte, NC experienced a mini-bubble over the last two years as people fled Florida for lower taxes, lower property insurance and the laid back atmosphere this bastion of Southern History provided. But that small bubble did two things: created flip opportunities for the patient investor with an incredible ROI, and long term growth potential. This market will continue to grow over the next two years, and may even experience another run up in prices.

Artists love Austin, TX. This capitol city should be number one on capital investors list. Home to musicians, filmmakers, and festival after festival, Austin is a buy and hold REI’s dream. Two colleges keep a steady influx of renters in the market, and long term growth potential. The suburbs offer FLIPPING opportunities and a large return on investment.

If an REI wants to see real results, then check out the “Show Me” state. St. Louis, MO. As the market’s on the Coast collapse and stagnate, St. Louis will perform like a saint. It’s got the same steady unemployment rate and safe and secure 4-5% home value growth rate. But it too has an oversupply of older homes that can be picked up for pennies on the dollar, rehabbed for dimes on the dollar and sold for thousands and thousands of dollars! The market is also solid for rentals, so a buy and hold strategy can be very profitable.

These markets are recommended for steady growth potential, but for the risk averse REI who’s educated themselves to the different techniques available should consider running in when all others are running out.

That means LA, and Orlando, and San Antonio and other markets that people are fleeing. The SUB PRIME MELTDOWN that resulted in a record number of FORECLOSURES put thousands of bargains on the market. A smart REI can swoop in and make millions.

The MARKET GLUT is expected to peak in 2008, and that’s when the large investors are going to move into those markets. As the big real estate investors move in, prices will go up, and the wave will rise again in those areas. REI’s will make money as home values appreciate naturally, and through forced appreciation. Buying a home for $55,000 that’s worth $100,000 through superior NEGOTIATING TECHNIQUES, and holding it for two years to sell for $115,000 - $129,00 puts hundreds of thousands of dollars in the REI’s pockets. And that’s just with SINGLE FAMILY HOMES. There are tons of bargains in multi-family properties too!

Just remember that education is important, and you need to learn from an INVESTOR who’s been there. You need a step by step guide that teaches you the tricks and techniques of the trade, and all of the marketing strategies that will put more money in your pocket.

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