Hey there! When you're launching your real estate empire, the most important question you should be asking is "what market should I invest in?" Most new investors either default to the market they live in or don't pick a market at all. *These are major pitfalls* And can lead to incredibly high opportunity costs down the road. You need a filter. You need a focus. Putting in the effort upfront to pick a good market will yield outsized results for years to come. Today, I'll share 5 simple steps to pick your market and link a recording of our most recent community call where we walk through the steps together. But before we dive in, check out my vendor recommendation for the week. This platform has been a game changer for evaluating deals...
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WEEKLY BREAKDOWN Don't fall into the trap of investing where you live just because it's most convenient. I'm going to outline the 5 simple steps to picking a real estate market below... But before I do, I want to make sure I convince you why picking a good real estate market has such a big impact on your success... This one decision can bring: Lower Risk: Stable markets reduce the risk of property value fluctuations and demand uncertainty. Higher Returns: Markets with growth potential increase the chances of maximizing your profits. Stronger Cash Flow: Consistent rental demand ensures a stable income stream. Economic Health: Strong job growth and economic development offer better opportunities. Better Exit Options: Markets with property demand will lead to more resale options. Quality Tenants: Certain markets attract reliable tenants, ensuring consistent rental income. More Financing Options: More lender options usually means better terms and less risk to fund. Tax benefits: Local laws and taxes can make or break your investment returns. In summary, put the effort in upfront to pick a strong market - you'll thank me later ;) So how do you pick a market? Here are the 5 steps to picking a real estate market to invest in: 1. Compile a List of Potential Markets from Online Articles Start your journey by researching reputable lists "Top Cash Flow Market" lists like BiggerPockets, RealWealth, and DS News. But don't stop there, there are so many great lists and market analyses you can find with a simple google search. These article can provide in-depth market data and trends. You don't need to start from scratch - leverage the work that industry experts have to to give you a foundation. Note: There are so many reasons to invest in real estate but when you're getting started, it's important to optimize for cash flow. This will protect you against unexpected expenses and ensure you're building a sustainable business. If cash flow isn't most important to you, switch your search to optimize for your goal e.g. "Top Appreciation Markets" 2. Filter Down to Top Markets Across Analyses You'll start seeing common markets across the market reports and lists you review. This is a great way to separate the objectively good markets from the outliers. Narrow your list to markets that consistently emerge as top performers across multiple sources. These markets have a proven track record, indicating stability and potential for growth. 3. Rank Top Markets on Investment Potential The factors that influence investment potential the most are cash flow, rent growth, population growth, and economic stability. Rank each market on a scale of 1-5 for each factor. Look no further than google to find detailed market information you need to select your ranking for each market e.g. "Cleveland, OH real estate market analysis" or "Dallas, TX real estate market forecast 2023". This systematic approach will quantify potential and guides your decision-making. Note: This ranking doesn't have to be perfect and is just an initial step to help you further filter the list. Your results here will save you the time in analyzing every market so you can focus on the top markets. 4. Consult Real Estate Agents in Top 3 Markets Local agents are your boots on the ground. Their insights provide invaluable real-time information about neighborhoods, demand, and investment opportunities. They can also verify the information you've gathered in step 3 and fill in the gaps of your online analysis. To ensure you're getting the most accurate anecdotal information, talk to experienced local agents. Don't settle for a random agent - make sure the agent is currently buying or selling the types of properties you want to buy. Use platforms like Zillow to find agents in your top markets - the listing agent's name and contact details are included in the middle of each listing. 5. Make Your Decision Armed with comprehensive research and local expertise, you can confidently select your market. Make sure to align your choice with your investment goals, risk tolerance, and investment strategy. Happy investing!
COMMUNITY CALL The topic of this week's call was: How to pick your market We discussed everything I detailed above, walked through the process, and dug deeper in Q&A. Click the image below to watch recording! ↓ ↓ ↓
THEN, WHEN YOU'RE READY... Consider joining 100+ students in the Secret Empire Course & Community! The course covers the exact playbook I used to grow from 1 to 39 rentals in 3 years. Founding members will get 2 strategy calls with me along with access to the community slack channel and bi-weekly community calls.