“Live where you want to live and invest where the numbers make sense.” -Robert Helms, “The Real Estate Guys”

Real Estate Offers Income and Stability

My real estate mentor Robert Helms coined the quote above. As I’ve had the distinct privilege of being coached by Robert and Russ of The Real Estate Guys, I thought I’d share some points about what makes a good real estate market.

One of the things I love about physical real estate more than any other asset class is its relative predictability. While not as flashy or well known as Wall Street, having a portion of your wealth in housing can add income and stability to your finances.

Real estate has far more to offer than most expect in terms of overall performance and stability. That said, it all begins with where you buy.

How to find which markets to invest in

With a few hours, an internet connection, and a bit of direction, anyone can find out where folks are moving to and why then judge for themselves if it’s a community they’d consider becoming a part of (literally).

The list below is a great place to start.

• Find states that have favorable landlord-tenant laws
• Look for a decent rent-to-price ratio. Use the “1% rule*” as a guideline
• Focus on multiple types of industries to reduce risk
• Determine which cities have positive population grown 
• Locate the places with median income growth

Develop your own financial philosophy

In addition to the criteria above, consider developing an investment framework or philosophy. One of the most influential books I’ve read is “The Accidental Superpower,” by Peter Zeihan.

The book describes how America is a young and growing country and details some underlying factors shaping its future. It has helped me form an investment framework by recognizing that the US has great growth potential, and I want to partake in that growth!

Do you have a book or person that has helped you form your own financial philosophy? Let us know in the comments below! 

Our mission is to help passive investors become financially free by providing high-quality alternative investments — if we can help you in that way, it would be an honor to do so. Schedule some time for us to chat! Until next time…