Have you successfully picked up and coming areas to invest in?

[Mike D.]

Just wondering if anyone here has been able to correctly predict cities that were on the rise and what signs within the cities signify that it is on the up swing?

[Bill Gulley]

OK, here is my tip of the day:

As foreclosures continue, look for metropolitan areas (MSAs) that have a well rounded economic base. That means staying out of company towns. Look for cities that have a regional influence in medical, education, government and medium and large manufacturing entities. The more diversified the local economy is the better it will stand up to these economic conditions. Hospitals will not be going broke soon and they employ hundreds or thosuands. Towns that have state universities will still be open, students still need hosuing. Towns near military instalations with regional influence will remain viable and if two or more of these elements are joined by manufacturing, food processing, consumer or durable goods, that economy should weather the storm.

Housing prices will continue to remain steady at a lower market value in many of these cities. Most people will have the fear of the unknown. Some in these types of businesses may have layoffs or hours reduced, but they should remain in place. Most people will not be buying a new home unless they are confident about their employment. Government employees and specialty medical types will remain employed in these areas. This spring should be a great time for investors in these stable markets and improve slightly through the third quarter due to stimulus benefits. Construction in these areas will probably rebound to the fourth quarter as infrustructure projects begin to stimulate these local economies. Regardless of your politics, you can bet that favorable economic reports will be used to hipe the economy for pre-elections..
Last year, in the coffee shops, I was telling people that unemployment would be about ten per cent, but that while foreclosures continued at a lesser default rate those issue would still remain for a couple years. But by December, markets would end on a up swing and real estate would be moving again, slowly, but moiving. I guess I was pretty close. Now I have gone out on a limb here, time will tell.

But be assured, you can bet that there will be great deals in the MSAs that I have pointed out. When there is movement in the economy there is opportunity, it doesn't matter which way it moves, it just has to move!
Good Luck in 2010! Bill .