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How To Pick Your Real Estate Market
For non-accredited investors, this is a solicitation of an indication of interest. No solicitation or acceptance of money or other consideration, nor of any commitment, binding or otherwise, from any person is permitted until qualification of the offering statement.
When it comes to investing in real estate, how do you know what market to get into? If you already follow me, you know that you should go after big apartment deals. Purchasing a home is not an investment. The bank sold middle America on the dream of owning a home. When you buy a house—you don’t really own it—the bank does. Never buy anything that you can’t own. When you really know your real estate market you’ll:
Be in it—love it
Keep it—location is growing
Produce Income
You want to be the landlord and own where you rent and rent where you live. People take large apartments for granted in America. These types of properties are an aberration that other countries don’t have. Big deals are going to perform well over time. It’s Wall Street that’s going to buy them in the future. What type of deals should you invest in? Don’t go little. Go as big as you can. I recommend investing in 16 units or higher (preferably 32 units) that are cash flow positive. You should also be in it for the long term. The reason why small deal or single family homes are a bad investment is because they rely on one or a few renters. That’s why I don’t invest in small properties. The bigger deal you go, the more cash flow you’ll have to provide you cover during market corrections.
Know Your Market!
Before you invest anything, you need to know what market that you are getting into. Different markets allows you to get away with certain things. It should be in your neighborhood and you should understand what jobs are coming in, is it overbuilt or expanding, and what people are willing to pay for. Research the market. Call local businesses. Get a feel for the economics in the area. Find out where corporations are going to be. I’m investing in Orlando right now because I know Mickey Mouse will stand the test of time.
Manage What You’re Doing!
Most people fall apart when it comes to managing the asset. You get good at this with experience. Always have a backup plan. Never rely on one of anything. Go to http://www.cardonecapital to learn more