A politician once proclaimed, "All politics is local!" The same is true for real estate. If you live in Southern California home values are climbing towards
sky. The real estate market is hot!
At very same time there are many areas in Midwest where there has been no job growth, no increase in sales activity and no increase in home prices for over 5-years. If you are in one of those markets you find real estate investing is an entirely different ballgame.
Here's a good example of picking your sweet spot… something you, as an investor, should consider when planning your investing tactics.
Technical Olympic USA is home builder. The company very carefully selects areas where they build homes. Right now they are in ten hot markets:
Florida Texas Tennessee Maryland Pennsylvania Arizona Virginia Colorado Nevada Delaware
This builder avoids crazy areas like San Diego, Loa Angeles and Boston.
They look for areas where employment has grown steadily for last 5 or 6 years and where second-time home buyers are moving to homes in $200,000 to $400,000 range.
They've learned that these buyers are in there 30s and 40s, have kids and want 3 or 4 bedrooms, 2,800 to 3,000 sq ft of living space and a two-car garage.
Yes, it would be nice if we could all do some research and move to an area where investors are having most success. Don't fret. Time and again truly determined have proven that you can make money in any real estate market… sweet or not.
