Where to spend 100,000 USD?

has anyone had anything to with the st louis or memphis markets?

The best way to look at how to spend your 100k is to look at the overall trendline of the various areas.

Dayton Ohio looked cheap to me .. but the overall trend is down.

Detroit Michigan was considered crap by a lot of people but if you buy wisely it has an extraordinary upside. Its not dead yet.

Atlanta Georgia is a mixed bag. Overall trendline is still heading down .. but its got potential.

Los Angeles CA is down and heading further down. Because of irrational government and taxes.

Las Vegas is oversaturated and overpopulated to needs and requirements.

People are speaking with their hip pockets and moving to areas where they can do business still. So you'll find areas like Arizona and some parts of the midwest are taking off. Follow the money … and you'll make money.

Just remember .. until the handout mentality stops in the US you'll have large ghetto communities that no self respecting middle class member of society wants to live around or near. They avoid them like the plague. So cheap in those areas just really means UNWANTED. Look for areas where people are upgrading .. demolishing or vanquishing their ghettos and you'll see room for price movements.

Xdrew

good post…

every market has its good and bad,

What your seeing right now is the US investor stepping back into the game… Off shore investors had a nice run with little to no competition in some of the better markets you mention. And from my perspective if I look just at my company we were chugging a long at 7 to 10 deals a month.. Now remember we keep them all…

Inventory is low in the better markets.. With Fannie and Freddie selling big packages to Hedge funds. .Who for the first time ever have decided to buy and hold single family residences. There is a package of 600 homes that Colony capital is bidding on in Metro Atlanta right now I expect they will get them…We have been approached to help them with about 10% of them…So thats 600 homes that heretofore would have been let out on the open market… Phoenix is experincing the same thing. The Columbia endowment just closed on 500 homes. And Aussies can’t compete with these companies they bought them for 80 cents on the dollar and a 6% cap… Hard to compete when most Aussie’s want 15% plus…So to get those 15% plus an investor is going to have to go into the less desirable areas, because they cannot compete with bigger US players that have decided to enter the fray.

And it was like a light bulb switched FEB 1st. I had about 22 houses in my inventory and I matched each of them up to a partner investor in about 10 days and I have demand for 20 plus a month right now…I have to spread that between our markets, so we keep pace with rental absorption…And I have to say I have some of the best guys in the industry on the ground as our equity partners… I wish I had thought up this model years ago I would not have gone through all the rental hell that comes with land lording from Portland Oregon….Give some equity and spread the wealth around let your team members on the ground make some up side and overnight your properties are performing far superior than what you would expect… I love having this huge portfolio and never once in a week dealing with a tenant issue.

At the end of the day good bad or whatever if your 6,000 miles away from your asset you need a great team on the ground.