Factors to consider when picking a market to start invest on?

Rental Property Investor · CA · Member since 2020 · 14 posts · 5 votes

Hello everyone,

I am new in the world of real state investing in the USA. I have the money to start investing and more importantly I have the willingness and determination to do it. So far I've devoured books, blogposts and youtube videos on different topics, but one that I'm not yet 100% comfortable is the methodology on finding a market to invest on.

I live in CA and I think the prices are crazy high right now, so I'm evaluating other area, but need a good framework to select it based on my investing goals.

What would you say are good techniques to pick a market to invest on?

Thanks in advance

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Zeke Liston

Real Estate Agent · Columbus, OH · Member since 2018 · 1k+ posts · 1k+ votes

Originally posted by @Cristian Orellana:

Hello everyone,

What would you say are good techniques to pick a market to invest on?

Thanks in advance

Hi Cristian, I would look at the population growth of some of the different cities that you're considering. Columbus for example has great population and job growth.

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Jon Schwartz
Realtor · Los Angeles, CA · Member since 2018 · 952 posts · 1k+ votes
6y
Originally posted by @Cristian Orellana:
Hello everyone,

I am new in the world of real state investing in the USA. I have the money to start investing and more importantly I have the willingness and determination to do it. So far I've devoured books, blogposts and youtube videos on different topics, but one that I'm not yet 100% comfortable is the methodology on finding a market to invest on.

I live in CA and I think the prices are crazy high right now, so I'm evaluating other area, but need a good framework to select it based on my investing goals.

What would you say are good techniques to pick a market to invest on?

Thanks in advance

Christian,

Fellow Californian here...

The most important market metrics are: rising median income, job creation, and population growth.

You also want to be aware of new unit construction. If population growth is rising but lots of new apartments are coming online, it's not as advantageous.

Lastly, you need to find an agent who knows how to work with out-of-state investors.

I found all of this is in Columbus, OH. I highly recommend reaching out to @Remington Lyman.

Best,

Jon
4 Reply
Remington LymanBusiness Member
Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
6y
Originally posted by @Cristian Orellana:
Hello everyone,

I am new in the world of real state investing in the USA. I have the money to start investing and more importantly I have the willingness and determination to do it. So far I've devoured books, blogposts and youtube videos on different topics, but one that I'm not yet 100% comfortable is the methodology on finding a market to invest on.

I live in CA and I think the prices are crazy high right now, so I'm evaluating other area, but need a good framework to select it based on my investing goals.

What would you say are good techniques to pick a market to invest on?

Thanks in advance

It does not matter where you start as long as you develop your Core 4. The core 4 is David Greene’s strategy for long-distance and made up of a realtor, contractor, property manager, and lender. Once you have this team in place, you should be able to confidently invest in any market.
As for picking a specific market - I would go after one with an increasing job and population growth. I invest and work in Columbus, Ohio.
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Zeke Liston
Real Estate Agent · Columbus, OH · Member since 2018 · 1k+ posts · 1k+ votes
6y
Originally posted by @Cristian Orellana:
Hello everyone,

I am new in the world of real state investing in the USA. I have the money to start investing and more importantly I have the willingness and determination to do it. So far I've devoured books, blogposts and youtube videos on different topics, but one that I'm not yet 100% comfortable is the methodology on finding a market to invest on.

I live in CA and I think the prices are crazy high right now, so I'm evaluating other area, but need a good framework to select it based on my investing goals.

What would you say are good techniques to pick a market to invest on?

Thanks in advance

Hi Cristian, I would look at the population growth of some of the different cities that you're considering. Columbus for example has great population and job growth.
4 Reply
Brandon GoldsmithBusiness Member
Real Estate Agent · Columbus, OH · Member since 2020 · 1k+ posts · 1k+ votes
6y
The above comments are all great advice. Good deals can especially be found in any market when you have a good team in place. I think one-factor people overlook a lot is job diversity. A rising population and job growth and amazing for opportunity but the overall job diversity solidifies the market in my opinion. @Cristian Orellana
[email protected]614-963-3340
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Cristian Orellana
OP
Rental Property Investor · CA · Member since 2020 · 14 posts · 5 votes
6y
Originally posted by @Jon Schwartz:

Christian,

Fellow Californian here...

The most important market metrics are: rising median income, job creation, and population growth.

You also want to be aware of new unit construction. If population growth is rising but lots of new apartments are coming online, it's not as advantageous.

Lastly, you need to find an agent who knows how to work with out-of-state investors.

I found all of this is in Columbus, OH. I highly recommend reaching out to @Remington Lyman.

Best,

Jon

Thanks a lot for this information, Jon!

Rising median income, job creation and population growth are metrics I didn't even considered when thinking about this, but they make a lot of sense.
Thank you also for sharing the agent's name, I'll take a look at Columbus, seems to be an attractive and popular location for real state investing.
Thanks again for sharing this!

0 Reply
Cristian Orellana
OP
Rental Property Investor · CA · Member since 2020 · 14 posts · 5 votes
6y
Originally posted by @Remington Lyman:
Originally posted by @Cristian Orellana:
Hello everyone,

I am new in the world of real state investing in the USA. I have the money to start investing and more importantly I have the willingness and determination to do it. So far I've devoured books, blogposts and youtube videos on different topics, but one that I'm not yet 100% comfortable is the methodology on finding a market to invest on.

I live in CA and I think the prices are crazy high right now, so I'm evaluating other area, but need a good framework to select it based on my investing goals.

What would you say are good techniques to pick a market to invest on?

Thanks in advance

It does not matter where you start as long as you develop your Core 4. The core 4 is David Greene’s strategy for long-distance and made up of a realtor, contractor, property manager, and lender. Once you have this team in place, you should be able to confidently invest in any market.
As for picking a specific market - I would go after one with an increasing job and population growth. I invest and work in Columbus, Ohio.
You are totally right, Remington, I am just making sense and assimilating all the info I've learnt in the last couple of weeks and will start assembling my core group of partners, I might reach out to you soon ;)
1 Reply
Cristian Orellana
OP
Rental Property Investor · CA · Member since 2020 · 14 posts · 5 votes
6y
Originally posted by @Zeke Liston:
Originally posted by @Cristian Orellana:
Hello everyone,

I am new in the world of real state investing in the USA. I have the money to start investing and more importantly I have the willingness and determination to do it. So far I've devoured books, blogposts and youtube videos on different topics, but one that I'm not yet 100% comfortable is the methodology on finding a market to invest on.

I live in CA and I think the prices are crazy high right now, so I'm evaluating other area, but need a good framework to select it based on my investing goals.

What would you say are good techniques to pick a market to invest on?

Thanks in advance

Hi Cristian, I would look at the population growth of some of the different cities that you're considering. Columbus for example has great population and job growth.

Thanks for sharing this Zeke, do you know if there are good tools/stats websites to pull this information?

1 Reply
Zeke Liston
Real Estate Agent · Columbus, OH · Member since 2018 · 1k+ posts · 1k+ votes
6y
Originally posted by @Cristian Orellana:
Originally posted by @Zeke Liston:
Originally posted by @Cristian Orellana:
Hello everyone,

I am new in the world of real state investing in the USA. I have the money to start investing and more importantly I have the willingness and determination to do it. So far I've devoured books, blogposts and youtube videos on different topics, but one that I'm not yet 100% comfortable is the methodology on finding a market to invest on.

I live in CA and I think the prices are crazy high right now, so I'm evaluating other area, but need a good framework to select it based on my investing goals.

What would you say are good techniques to pick a market to invest on?

Thanks in advance

Hi Cristian, I would look at the population growth of some of the different cities that you're considering. Columbus for example has great population and job growth.

Thanks for sharing this Zeke, do you know if there are good tools/stats websites to pull this information?

I don't know of any specific websites, I usually just google search different areas.
1 Reply
Lee RipmaPro Member
Rental Property Investor · Prairie Village, KS · Member since 2015 · 2k+ posts · 2k+ votes
6y
@Cristian Orellana
There isn’t a very good way to get this info, I’m actually launching a software product that allows you to get location insights based on the 7 factors that I look at when picking and out of state market and then drill down into exact locations. If you want some free advice in return for being a beta tester of my software product feel free to DM me.
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Cristian Orellana
OP
Rental Property Investor · CA · Member since 2020 · 14 posts · 5 votes
6y
Originally posted by @Lee Ripma:
@Cristian Orellana
There isn’t a very good way to get this info, I’m actually launching a software product that allows you to get location insights based on the 7 factors that I look at when picking and out of state market and then drill down into exact locations. If you want some free advice in return for being a beta tester of my software product feel free to DM me.

Let me know once you have it up, I can beta test it too!

1 Reply
Steven Stokes
Specialist · San Francisco, CA · Member since 2013 · 227 posts · 158 votes
6y
I live in San Francisco so I know it's harder to invest here and make a decent profit.
If you're looking to invest in CA because you want to invest somewhere close to home I would suggest look for areas that are gentrifying. It's sad that it's happening but it a good way for an investor to get in on the trend up in the market area. The average priced home is still a million dollars but the market is still strong in areas that are being gentrified.
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Cristian Orellana
OP
Rental Property Investor · CA · Member since 2020 · 14 posts · 5 votes
6y
Originally posted by @Steven Stokes:
I live in San Francisco so I know it's harder to invest here and make a decent profit.
If you're looking to invest in CA because you want to invest somewhere close to home I would suggest look for areas that are gentrifying. It's sad that it's happening but it a good way for an investor to get in on the trend up in the market area. The average priced home is still a million dollars but the market is still strong in areas that are being gentrified.

I was checking Pleasanton and Dublin, but the market is crazy there too, Stockton seems like a good place (in some areas) but I haven't explored more. I have a negative bias towards CA because of how expensive it has become as of late.

0 Reply
Scott Lundgren
Investor · Kansas City, MO · Member since 2015 · 48 posts · 165 votes
5y
@Cristian Orellana
Cash Flow, Landlord friendly legislation, balance of renters to owners, economic and population growth, Fortune 500 companies should narrow down the search. The key to out of state rental cash flow is the team you work with. You can find the ideal property, in the ideal location, but if it’s managed poorly it still won’t perform. Have you considered working with a turnkey company that has already built a network you can tap into instead of building it on your own?
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