Seeking tertiary market outside of the secondary market

[Vincent Chen]

As we all know,the 24-hour cities MSA (primary markets) might already expansion or go through correction process. So my strategy is to seek tertiary markets of the secondary markets.

For secondary markets,I mean the southeast and midwest MSAs (GA,SC,NC,MO,TN),for these MSAs ,the main cities (Atlanta,Charlotte,Charleston and so on) are already hot for investment.So anyone have the experiences on the tertiary markets of these main MSAs ?Some good counties/cities around these MSAs?

I am value add investor and would like to seek good chance to enjoy the growth of the secondary market but not overpay.Thanks for everyone.

[Josh Stack]

Hey Vincent,

In my view the I-85 corridor as well as the I-26 corridor are rental markets with strong long term potential especially when comparing some of the rust belt and Midwestern cities that are all the rage now.

If you are buy and hold til you die then we must look at long term demographic, economic and other trends and how it might affect our markets.

Cost of living is attractive in the south compared to many other areas and this creeps into the cost of labor as well. Milder climates and - if you are away from the coast - limited exposure to natural disasters also make the area long term attractive for investors and residents alike. Considering probable effects from climate change and the continuing urbanization of the nation not to mention the world at large the anchor cities of Charlotte and Atlanta provide support to mid tier cities like Greenville, the research triangle, Augusta, Knoxville, Chattanooga and the list goes on. Continued long term investment in the shipping infrastructure in Charleston all but assures its prominence as the gateway of choice for trade in and out of the southeast. We haven’t even started on the manufacturing in the area with Volvo setting up shop and Boeing having success showing that the region can compete on a world class scale with its labor pool of right to work employees.

Digging deeper into quality of life and economic fundamentals the region is strong and in some ways becoming more progressive with downtowns being opened up to walking and biking. Greenways abound and numerous cities have seen the light when it comes to urban development. Greenville S.C. particularly springs to mind here.

I’m longterm bullish on these second level support cities to the main urban areas and I firmly believe that if one really examines the opportunity to investors they will come to the same conclusion.