Crowdfunding real estate

26 Replies

If you could select the best country/city to place your real estate bets on, which country/city would that be?

Austin, Raleigh & Silicon Valley are very hot. CNBC says Georgia is the #1 state for business this year. There are lots of places that are growing right now.


Working in the business in the Atlanta area, I would have to agree with @Mark Robertson  

. We have a high demand and great opportunities for investors!

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I am kind of partial to Austin ;-)

Originally posted by @Bryan Hancock:

I am kind of partial to Austin ;-)

 Me too, and I'm not even from there. 

Anywhere in the USA. Deals are like luck, you make your own.

Good luck!

Forbes has a useful starting point, their hottest cities to invest in real estate, based in part on population growth and forecasted home pricing increases:

Tops for 2014 include: Dallas/Fort Worth, Charlotte, Nashville, and Houston.




...just saying

Always fun when your city makes the list. I live between #8 and #12 on the Forbes list....Central Florida has been pretty hot for at least 12-18 months.

After talking to a CEO of one of the major funding portals yesterday, I learned that New York & Austin are two of the most attractive markets to their investors. 

I have a lot of clients who are re-allocating their real estate portfolios to Tennessee, Ohio and Georgia.  I guess time will tell if this is a smart move.

Originally posted by @Tim Fergus:

Working in the business in the Atlanta area, I would have to agree with @Mark Robertson  

. We have a high demand and great opportunities for investors!

As a long-time Atlanta investor, I'm seeing just the opposite.  There are very few good deals these days, unless you're building new construction or doing big rehabs on higher-end properties (that's all we're doing down there anymore).

Not to say that there aren't deals to be found, but anyone telling you that it easy to find good deals is flat out lying...

Is this specifically tied to crowdfunding or in general?

I think there's opportunity just about everywhere, even outside the hot cities. I'm in Central Ohio and see vast numbers of very good properties available, I just wish I had more money! 


What do you consider a good deal? How tight is your criteria? 

@Paul Sundin , CPA 

  paul why would they go to TN  maybe its Nashville.. Memphis seems like it has had its run

@J Scott 

  not sure whats happening in the last 2 years. but when I went into the market 3 years ago I think it was one of the top places to invest at the down spike along with vegas and PHX

We did quite well.. some of the props we bought were never lived in and we bought them for 30 bucks a foot.. And a few we bought for much less.. It was a biblical melt down in those days and those that bought 3 to 4 years ago are sitting pretty no doubt.

WE sold out to a hedge fund last Oct.. can never go wrong when you make a profit.. deals are like steet cars one on the next corner

@Jay Hinrichs

Memphis has had a good run, but I still see people buying there and Nashville.  Seems like more are buying in Ohio though.

Originally posted by @Jay Hinrichs:

@J Scott 

  not sure whats happening in the last 2 years. but when I went into the market 3 years ago I think it was one of the top places to invest at the down spike along with vegas and PHX

I bought many dozens of properties in Atlanta between 2008-2012, and then in 2012, the institutional investors and hedge funds started moving in.  We sold a lot of property to these big investors in 2012 and the beginning of 2013 -- most of it overpriced because they were desperate to put their cash to work.

By the summer of 2013, it was very difficult to find rent-ready buy-and-hold deals below $100-150K in any decent parts of Atlanta metro and flip deals were practically non-existent.  Most of the investors I know who are still doing well have moved up in price point, have started building spec houses or have expanded their buying area outside of metro Atlanta.

Obviously, there are still deals to be had, but I haven't seen a good deal from a wholesaler in about 18 months and the good deals I'm finding myself (other than high-end and new construction) are few and far between. 

The Atlanta market has changed tremendously in the past 18 months...

@J Scott 

  Atlanta is a success story... as well as Vegas and Phx.. were prices melted down and came roaring back in the last 18 months as you state.. The hedge fund influence is undeniable  along with the heard mentality 2 to 4 years ago the Aussies were so hot on Atlanta it was crazy.. Problem with a lot of the out of area investors was they did not have the benefit of buying form a team member on the ground and by the time they paid Aussie marketing company US wholesaler and retailer etc etc. they were already paying 100k or so 2 years ago for the same house you and I bought for 50k.. Not all Aussie but a bunch of them. So this run up in values has them about to break even.. Hind sight is what it is.. But its self evident now that when I started there in 09 I should have concentrated my efforts there instead of only buying a little less than 50 of them. 

Big question now will be the heard mentality that is attracting buyers to Texas in droves.. Those that bought 2 to 4 years ago and got a true wholesale deal are benefiting no doubt those buying today they are banking on appreciation from an asset that has already had a pretty good run up.

Also we can't have this talk without excluding California prices bounced back in certain areas there very strong. As well as our under the market Portlandia  we have had 20% appreciation in the last 24 months as well.. I look at one subdivision I built out. and what I sold for 330k  24 months ago I just sold exact same home for 409k so nice movement here. 

I agree with @Mark Robertson  and @Tim Fergus  .. Atlanta has a great buyer's market right now. It is true, investors from all over are picking up properties left and right at ridiculous deals, mainly because they understand the market and know that working with real estate essentially means, "first come, first serve." But there are also more great pockets that are not as visible to the average investor. I am currently working with a real estate investment brokerage that helps with investors of all levels with the acquiring and selling of these Atlanta investment properties at great deals, accompanied by great guidance. 

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Real estate is like the stock market.  When everyone says buy financials, don't buy financials because it's too late.  When people (especially Forbes, hedge funds, etc) say buy "these" markets, again it's too late.  Buy smart, local if possible, and make sound investments that will pay off with minimal risk.  The "hot" markets usually hit rock bottom the "hottest" means possible when the economy sucks just as stock sectors do.  I'm sure all the previous recommendations are good, but first you must understand what risk/reward you are willing to take prior to jumping in a hot market.  That's just an opinion from a conservative investor.

Im in the northern suburb market of Atlanta and my experience has been pretty much exactly as @J Scott described above. There was indeed an influx of institutional money that made buying anything under $150k almost impossible. Its very hard to find a good deal at the Courthouse steps, on the MLS, HUD or FNMA as other investors are paying way too much for properties. Im just not willing to operate on that thin of a margin...


As per my opinion, 

Altanta and Austin are best cities for real estate investment.


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