Posted at November 12, 2020 Posted In Uncategorized

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

The quote above was coined by my real estate mentor Robert Helms. 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 as to what makes a good real estate market.

One of the things I love about physical real estate more so 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 “under the hood” than most expect in terms of overall performance and stability. That said, it all begins with where you buy.

Cecil Turtle vs. Bugs Bunny

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
  • Job growth usually precedes population growth. Focus on Multiple types of Industry to reduce risk
  • Population Growth
  • Median Income Growth

In addition to the criteria above you may also want to consider developing an investment framework or philosophy. One of the most influential books I’ve read in helping me develop my own 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.

Wishing you the best of luck and happy researching!

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…

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