Location, location, location! In real estate, where you invest is more important than just saying, hey I want to be a real estate investor. So I'm going to go into my backyard, and I'm going to do a deal. Don't do that. That's what a beginner does, and then beginners have to go through like beginner mistakes and beginner trials and pitfalls and trials and errors. Instead today I’m going to be sharing with you the very best places that you can invest right now.
Okay, I am at my corporate office where we transact hundreds and hundreds and hundreds and millions of dollars’ worth of real estate and today's article is about where to go in the market today right? Where the best places to invest in inventory is down so come on in with me, I'm going to show you a couple of things here.
Land and Wildlife is a done for you real estate USA. This is one of my fulfillment company that handles acquisitions, finding these homes, and doing this. Right here, you're looking at a map of Oregon and when you take a look at this map, this was an area where I help my clients do over a thousand deals after the O seven fallout. What was so attractive about this market at that time not now? I've sold all my inventory. What was so appealing about it is that this area had been overbuilt they had put in all this infrastructure way more homes and people actually needed, so people were at one point, these homes were getting bid up to 250 or 300 thousand dollar homes when the market fell outhouse is only worth what someone's willing to pay. No one's willing to pay, the prices are technically worth nothing, but the investors started scooping up the three hundred thousand dollar house and the quarter million dollar house for 80 grand. I was coming in here I'm bidding on all these and just picking these up like crazy like candy and I help my clients do a whole pile of these homes makes a whole lot of money. So at one point, this was a good market. Am I
investing there? In a moment I'll tell you why no.
At the Second side; this is Washington. This is another market like Oregon. Now they were a little more challenging to work with because in Oregon we could own the town when it came to the auctions they just had some other guidelines and rules and legal government things. You know we're not only a federal government we're 50 states and every state has its own rules and regulations on how the auction and foreclosure processes work. Land for sale in Washington, I'm selling all my inventory out of that market too. Done really really well. Okay, come in here let me tell you some of the places I am today.
Ok, Idaho there are pockets in areas in neighborhoods here in Idaho where I will specifically go. And what's attractive to me about Idaho is this is what I call a cash flow market. I've got cash flow markets and I got equity markets. Cash flow market means you're not going to get as much equity, but in the market like this, you can buy a home for one hundred and fifty thousand dollars were far below the median. But this is a home that's going to give you your highest cash on cash returns. We see our money on cash at eight nine ten plus percent. Then there's a lot of people that are thinking, oh I have to do real estate like backyard. No. America is your backyard if you have the right team and you want to go where the actions at because those market is showing you we were in we play for years and then we got out great cash flow market. You can stay there long term. Charlotte this is a brand new market that we've just gone in there are many things that are attractive and here the way building is happening, we're stepping into equity on brand-new properties that are in the build-out phase. These are more in the 160 to 200 thousand dollar range. Charlotte, we do our research. We look at the demographics, we look at the businesses, and we look at the economy. Is it growing? Is it expanding? What’s the temperature like? What kind of problems do you have you know when it gets freezing? You know for example if I come over here to Oregon, this is want to make favorite markets. I love buying houses here. Check out all these lakes. Do you see this right here? You can get on the map and see that people are taking these legs and turning them into wonderful communities. Medford Oregon right below the state parks this is a magic place. Like Phoenix where the average tenant was making over 60 70 thousand dollars a year, these people in this very different industry are averaging sixty thousand dollars a year. I'm buying my houses here for a hundred to one hundred and forty thousand dollars. Homes that were once selling for two hundred, two hundred and thirty thousand dollars. So I get it at 130, they cost two hundred to build. And guess what has to happen before the market corrects and goes down? We have to get back to a surplus of inventory. Here you can check the land for sale in Idaho
Real estate? It’s so easy to predict. The market I can't believe some so many people feel like it's, you never know when it's going to fall out. Of course, you do! It starts with no inventory. Like right now, my corporate office is in Oregon right now is a booming market. In every square mile, you have like one home for sale there's nothing for sale on the market and everything selling at top dollar that's why I'm liquidating all of my inventory and I'm doing amazingly well making excellent money on it. Well, people are wondering, uh-oh the prices are starting to go up so when the prices are going up doesn't that mean that the market is going to fall out? No! It doesn't say that yet. What has to happen first, well I'll tell you, there are no homes available on the market, so there's going to be a two, three year lag where right now construction is happening everywhere.
Everyone is building out; everyone is booming these contractors are coming in, multifamily, single-family homes, and what will happen is with the supply and the demand is that those homes are going to get taken by all this demand of people wanting to get into homes. But the builders are going to keep on building and the prices will go up and then the neighbors are going to notice that the prices are going up and they'll get excited and they'll do what the builders are doing. And before you know it, even the skeptic’s jump in. Last, usually that's why they get spanked again and you'll get the problem where, Uh oh now there's too much supply and not enough demand. Guess what? Home is only worth what someone's willing to pay and when we don't need for it no one's willing to pay, all of a sudden that value can drop so hard on its bottom that there's nothing left there. That's what we wait for in the markets.
Is the market always moving right? It doesn't just run like this the values go up like that but the way it looks, in reality, it seems more like that right? Do we call this a what? A bubble. Do we call this a what? We call this a trough. And this is really what the market movement looks like when you get to an expensive million dollar house. This is what it looks like or maybe a home with the median. Meaning it doesn't travel very much it's still going to create pockets of up and down it's going to be a lot safer and right now where we're at in our specific marketplace, we're playing somewhere along this stretch. We're not ready for crash yet because we don't have a surplus of inventory but the prices are now starting to see what cost to build a home. Find the best Land for sale in Oregon
So this is a fantastic time to get in on the right kind of real estate and know that real estate is not the same around the entire US. All these pockets are functioning. Differently, there is a collective whole, but it's all about being in the very best market, so I want to tell you something. Right here, this is the world's best time to Getting Started in Commercial Real Estate Investing in US that's that Oregon stuff that I was saying about. Washington and these are their markets. But when the market is going up we're going cash flow markets we're getting our equity or knowing when to pull out, but we're also playing at the medium so that we've minimized our risk and exposure that you can have on deals like this.