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

Question

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 · Answer

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 .

Brian Levredge · Answer

The answer sort of depends on what types of properties you are looking to invest in. You want to look for areas that have pro growth governments and good short and long term job growth. Ideally you want to get in before prices go up too much and get out before builders start throwing up sub divisions on spec.

Rich Weese · Answer

I don't mind bragging a little. If you actually do it, it is not bragging!. 1. So Cal ( by accident in 1970's) 2. St. George, Utah in early 80's 3. Casa Grande, AZ in 2001. 4. SO. TX in 2005 5. Just moved to SW FL 3 months ago. Began buying real estate here 9 months ago. Time will tell if this area will be 5th success. A lot of my past and things I look for are here on BP in previous posts, threads, blogs and Meet The Investor section. Specific questions, just ask. I like the sunshine and low median price home areas as 2 characteristics I look for. Rich.

Rich Weese · Answer

Now I get it! Thanks.

Raymond B. · Answer

Main Entry: genÂ·triÂ·fiÂ·caÂ·tion Pronunciation: \ËŒjen-trÉ™-fÉ™-ËˆkÄ-shÉ™n\ Function: noun : the process of renewal and rebuilding accompanying the influx of middle-class or affluent people into deteriorating areas that often displaces poorer residents Ray in Ct.

Rich Weese · Answer

I don't even know what gentrify means. However, being successful in RE fo so long, maybe I don't need to know what Gentrify means. Rich, very successful in areas listed previously...

Mike D. · Answer

I guess I should add that I'm not talking about speculating on appreciation. What I am talking about are areas that are about to gentrify.

Mike D. · Answer

haha no I wasn't asking for people to brag(although I don't mind if you do), it was a genuine question. I'm from NJ and if anyone of you is familiar with the area you would know about Hoboken, which is a town that went from crappy to unaffordable. I was reading about it today, and it got me thinking that the people who invested there right before it became the hot spot it is today must have made out like crazy. So that got me thinking about what might be the next "Hoboken", considering how many cities we have outside of NYC and philly.

Rich Weese · Answer

Tom, All were basically sfrs area. In SO Cal, also multi units. I still feel good about SO TX. It has tremendous reasons. The jury is still out on FL, imo. I bought a self storage facility, slightly early, but it will be good soon. Increasing 4% occupancy per month. I don't like the games being played in FL by most real estate agents and almost ALL banks, imo. Auction, multi offer debacles. Rich

Bill Gulley · Answer

Hi, are you asking for us to brag? I won't go there, some people have already accused me of being egotistical, but as I have to tell them, I have good reason to be. LOL! Bill