Latest / MPI Multifamily Commercial Real Estate Investing / Finding the Right Location for Multifamily Investments

Transcript

Finding the Right Location for Multifamily Investments · MPI Multifamily Commercial Real Estate Investing

• 1:17
  You're
• 1:17
  listening
• 1:17
  to
• 1:17
  the
• 1:18
  Master
• 1:18
  Passive
• 1:18
  Income
• 1:19
  Podcast
• 1:19
  Network.
• 1:23
  Hey,
• 1:23
  guys,
• 1:23
  Charles
• 1:24
  Seaman
• 1:24
  here
• 1:24
  with
• 1:25
  Erica
• 1:25
  McNew
• 1:25
  for
• 1:25
  the
• 1:26
  Master
• 1:26
  Passive
• 1:26
  Income
• 1:27
  Multifamily
• 1:27
  Podcast.
• 1:28
  And
• 1:29
  if
• 1:29
  you
• 1:29
  want
• 1:29
  our
• 1:29
  commercial
• 1:30
  real
• 1:30
  estate
• 1:30
  success
• 1:31
  guide,
• 1:31
  you
• 1:31
  can
• 1:31
  text
• 1:31
  the
• 1:31
  word
• 1:32
  freedom
• 1:32
  to
• 1:33
  33777.
• 1:35
  Today
• 1:35
  we're
• 1:35
  going
• 1:35
  to
• 1:36
  be
• 1:36
  talking
• 1:36
  about
• 1:36
  a
• 1:36
  really
• 1:37
  important
• 1:37
  topic
• 1:37
  in
• 1:38
  multifamily
• 1:39
  finding
• 1:39
  the
• 1:39
  right
• 1:40
  location
• 1:40
  for
• 1:40
  your
• 1:41
  multifamily
• 1:41
  investments.
• 1:46
  Welcome
• 1:46
  to
• 1:46
  the
• 1:46
  Master
• 1:47
  Passive
• 1:47
  Income
• 1:48
  Multifamily
• 1:49
  Podcast
• 1:50
  where
• 1:50
  we
• 1:50
  guide
• 1:50
  you
• 1:50
  to
• 1:51
  invest
• 1:51
  in
• 1:51
  commercial
• 1:52
  real
• 1:52
  estate
• 1:52
  with
• 1:52
  a
• 1:53
  special.
• 1:53
  Focus
• 1:54
  on
• 1:54
  raising
• 1:54
  money
• 1:55
  from
• 1:55
  others
• 1:56
  to
• 1:56
  buy
• 1:56
  bigger
• 1:56
  and
• 1:57
  better
• 1:57
  deals.
• 1:58
  And
• 1:58
  now,
• 1:58
  here
• 1:58
  are
• 1:59
  your
• 1:59
  hosts,
• 1:59
  Charles.
• 2:00
  Seaman
• 2:00
  and
• 2:00
  Erica
• 2:01
  McNew.
• 2:06
  Erica,
• 2:06
  do
• 2:06
  you
• 2:06
  want
• 2:07
  to
• 2:07
  share
• 2:07
  one
• 2:07
  thing
• 2:08
  that
• 2:08
  people
• 2:08
  should
• 2:08
  be
• 2:09
  looking
• 2:09
  for
• 2:09
  as
• 2:09
  they
• 2:09
  look
• 2:09
  for
• 2:09
  multifamily
• 2:10
  investors?
• 2:11
  Yeah,
• 2:11
  absolutely.
• 2:12
  So
• 2:12
  you're
• 2:13
  getting
• 2:13
  started
• 2:13
  on
• 2:14
  that
• 2:14
  multifamily
• 2:15
  journey
• 2:15
  or
• 2:15
  you're
• 2:15
  looking
• 2:15
  for
• 2:16
  another
• 2:16
  acquisition.
• 2:16
  And
• 2:17
  one
• 2:17
  of
• 2:17
  the
• 2:17
  most
• 2:18
  important
• 2:18
  things,
• 2:18
  I
• 2:18
  think
• 2:19
  is
• 2:19
  market
• 2:20
  trends.
• 2:20
  So
• 2:21
  you're
• 2:21
  looking
• 2:21
  at
• 2:22
  job
• 2:22
  growth
• 2:23
  within
• 2:23
  a
• 2:23
  certain
• 2:24
  area.
• 2:24
  And
• 2:25
  when
• 2:25
  you're
• 2:25
  looking
• 2:25
  at
• 2:25
  a
• 2:26
  particular
• 2:26
  asset
• 2:26
  for
• 2:27
  acquisition,
• 2:27
  I
• 2:27
  think
• 2:28
  it's
• 2:28
  really
• 2:28
  important
• 2:29
  to
• 2:29
  get
• 2:30
  into
• 2:30
  the
• 2:31
  logistics
• 2:31
  and
• 2:31
  the
• 2:31
  details
• 2:32
  of,
• 2:32
  like,
• 2:32
  where
• 2:33
  are
• 2:33
  your
• 2:33
  tenants
• 2:33
  coming
• 2:34
  from?
• 2:34
  Where
• 2:34
  is
• 2:34
  your,
• 2:35
  you
• 2:35
  know,
• 2:35
  avatar
• 2:36
  tenant
• 2:36
  coming
• 2:36
  from?
• 2:36
  Where
• 2:37
  do
• 2:37
  they
• 2:37
  work?
• 2:38
  What
• 2:38
  are
• 2:38
  the
• 2:38
  employment
• 2:39
  centers
• 2:39
  that
• 2:39
  are
• 2:39
  around
• 2:40
  that
• 2:40
  building?
• 2:41
  I
• 2:41
  think
• 2:41
  that's
• 2:41
  really
• 2:42
  important,
• 2:42
  especially
• 2:42
  on
• 2:43
  the
• 2:43
  larger
• 2:43
  multifamily
• 2:44
  chatgpt.
• 2:45
  You
• 2:45
  know,
• 2:45
  that's
• 2:45
  one
• 2:46
  of
• 2:46
  my
• 2:46
  friends.
• 2:46
  And
• 2:47
  so
• 2:47
  I
• 2:47
  always
• 2:47
  plug
• 2:48
  that
• 2:48
  in.
• 2:48
  You
• 2:48
  know,
• 2:49
  what
• 2:49
  are
• 2:49
  some
• 2:49
  of
• 2:49
  the
• 2:49
  jobs
• 2:50
  and
• 2:50
  infrastructure
• 2:51
  in
• 2:51
  this
• 2:51
  location?
• 2:52
  And
• 2:53
  it's
• 2:53
  always
• 2:53
  great.
• 2:53
  It
• 2:54
  gives
• 2:54
  you
• 2:54
  kind
• 2:54
  of
• 2:54
  a
• 2:55
  good
• 2:55
  base
• 2:55
  of
• 2:56
  some
• 2:56
  of
• 2:56
  the
• 2:56
  companies
• 2:56
  that
• 2:56
  you
• 2:56
  can
• 2:57
  then
• 2:57
  look
• 2:57
  into.
• 2:57
  When
• 2:58
  I
• 2:58
  see
• 2:58
  those
• 2:58
  companies
• 2:59
  that
• 2:59
  are
• 3:00
  bigger
• 3:00
  employers
• 3:01
  within
• 3:01
  a
• 3:01
  particular
• 3:01
  area
• 3:02
  around
• 3:02
  an
• 3:03
  asset
• 3:03
  that
• 3:03
  I'm
• 3:03
  looking
• 3:03
  at
• 3:04
  for
• 3:04
  acquisition,
• 3:05
  I
• 3:05
  am
• 3:06
  really
• 3:06
  comfortable.
• 3:06
  If
• 3:06
  I
• 3:07
  see
• 3:07
  them
• 3:07
  putting
• 3:07
  more
• 3:08
  money
• 3:08
  into
• 3:08
  development,
• 3:09
  that's
• 3:09
  always
• 3:09
  a
• 3:09
  good
• 3:10
  sign,
• 3:10
  right?
• 3:10
  And
• 3:11
  so
• 3:11
  market
• 3:12
  trends
• 3:12
  is
• 3:12
  something
• 3:13
  I
• 3:13
  think
• 3:13
  is
• 3:13
  important.
• 3:14
  You're
• 3:14
  also
• 3:14
  looking
• 3:15
  at
• 3:15
  population
• 3:16
  growth,
• 3:16
  and
• 3:17
  within
• 3:17
  that,
• 3:18
  even
• 3:18
  more.
• 3:18
  So
• 3:18
  you're
• 3:19
  looking
• 3:19
  at
• 3:19
  population
• 3:19
  growth,
• 3:20
  you're
• 3:20
  looking
• 3:20
  at
• 3:20
  the
• 3:20
  average
• 3:21
  size
• 3:21
  per
• 3:21
  household,
• 3:22
  a
• 3:22
  variety
• 3:22
  of
• 3:22
  different
• 3:23
  data
• 3:23
  points,
• 3:23
  and
• 3:23
  then
• 3:24
  developments.
• 3:24
  I
• 3:24
  think
• 3:25
  like,
• 3:25
  that's
• 3:25
  why
• 3:25
  a
• 3:25
  local
• 3:26
  real
• 3:26
  estate
• 3:26
  agent
• 3:26
  is
• 3:27
  so
• 3:27
  important,
• 3:27
  because
• 3:28
  it's
• 3:29
  critical
• 3:29
  that
• 3:29
  you
• 3:29
  know
• 3:30
  what
• 3:30
  development
• 3:31
  is
• 3:31
  going
• 3:31
  in,
• 3:31
  where
• 3:32
  and
• 3:32
  when
• 3:32
  and
• 3:33
  what
• 3:33
  point
• 3:33
  of
• 3:33
  the
• 3:33
  process
• 3:34
  it's
• 3:34
  in.
• 3:34
  So
• 3:35
  that's
• 3:35
  one
• 3:35
  of
• 3:35
  the
• 3:35
  first
• 3:36
  things
• 3:36
  I
• 3:36
  educate
• 3:36
  my
• 3:37
  multifamily
• 3:37
  investors
• 3:38
  on,
• 3:38
  is
• 3:38
  some
• 3:38
  of
• 3:39
  the
• 3:39
  areas
• 3:39
  that
• 3:39
  we
• 3:39
  can
• 3:40
  anticipate
• 3:41
  appreciation
• 3:41
  and
• 3:42
  more
• 3:42
  housing
• 3:42
  demand
• 3:43
  based
• 3:43
  on
• 3:43
  some
• 3:43
  of
• 3:43
  the
• 3:44
  developments
• 3:44
  that
• 3:44
  are
• 3:44
  going
• 3:44
  In.
• 3:45
  So
• 3:45
  that's
• 3:46
  some
• 3:46
  of
• 3:46
  the
• 3:46
  things
• 3:46
  that
• 3:46
  I
• 3:47
  see
• 3:47
  with
• 3:47
  like
• 3:47
  market
• 3:47
  trends.
• 3:48
  What
• 3:48
  about
• 3:48
  you,
• 3:48
  Charles,
• 3:49
  what
• 3:49
  do
• 3:49
  you
• 3:49
  think?
• 3:50
  I
• 3:50
  think
• 3:50
  those
• 3:50
  are
• 3:50
  actually
• 3:50
  some
• 3:51
  really
• 3:51
  good
• 3:51
  points.
• 3:51
  You
• 3:52
  know,
• 3:52
  you
• 3:52
  gotta
• 3:52
  follow
• 3:52
  the
• 3:53
  jobs.
• 3:53
  People
• 3:53
  move
• 3:54
  where
• 3:54
  jobs
• 3:54
  are.
• 3:55
  So
• 3:55
  if
• 3:55
  there's
• 3:56
  an
• 3:56
  employer
• 3:56
  and
• 3:56
  they're
• 3:56
  bringing
• 3:57
  a
• 3:57
  lot
• 3:57
  of,
• 3:57
  a
• 3:57
  lot
• 3:58
  of
• 3:58
  jobs,
• 3:58
  especially
• 3:58
  if
• 3:58
  they're
• 3:59
  high
• 3:59
  quality
• 3:59
  jobs,
• 4:00
  you're
• 4:00
  going
• 4:00
  to
• 4:00
  see
• 4:01
  people
• 4:01
  that
• 4:01
  actually
• 4:01
  migrate
• 4:02
  there
• 4:02
  because
• 4:02
  that's
• 4:03
  where
• 4:03
  they
• 4:03
  need
• 4:03
  housing.
• 4:04
  People
• 4:04
  want
• 4:04
  to
• 4:04
  live
• 4:04
  close
• 4:05
  to
• 4:05
  where
• 4:05
  they
• 4:05
  work
• 4:05
  and
• 4:06
  they
• 4:06
  want
• 4:06
  to
• 4:06
  be
• 4:06
  working
• 4:06
  with
• 4:06
  jobs
• 4:07
  for
• 4:07
  plentiful.
• 4:07
  So
• 4:08
  that's
• 4:08
  definitely
• 4:09
  some
• 4:09
  great
• 4:10
  insight.
• 4:10
  One
• 4:10
  thing
• 4:10
  I
• 4:10
  would
• 4:11
  also
• 4:11
  say,
• 4:11
  aside
• 4:11
  from
• 4:12
  population
• 4:12
  growth
• 4:13
  is
• 4:13
  household
• 4:13
  formation
• 4:14
  growth.
• 4:15
  And
• 4:15
  I
• 4:15
  think
• 4:15
  too
• 4:16
  many
• 4:16
  people
• 4:16
  focus
• 4:16
  on
• 4:16
  population
• 4:17
  growth
• 4:17
  and
• 4:17
  not
• 4:18
  enough
• 4:18
  on
• 4:18
  household
• 4:18
  formation
• 4:19
  growth.
• 4:19
  So
• 4:19
  somebody
• 4:20
  might
• 4:20
  ask,
• 4:20
  well,
• 4:20
  what's
• 4:20
  the
• 4:21
  difference?
• 4:21
  Well,
• 4:21
  population
• 4:22
  is
• 4:22
  each
• 4:22
  individual
• 4:23
  person,
• 4:23
  right?
• 4:23
  So
• 4:23
  you
• 4:24
  have,
• 4:24
  if
• 4:24
  you
• 4:24
  have
• 4:25
  two
• 4:25
  people,
• 4:26
  regardless
• 4:26
  of
• 4:26
  their
• 4:26
  living
• 4:27
  situation,
• 4:27
  your
• 4:28
  population
• 4:28
  is
• 4:28
  two,
• 4:29
  but
• 4:29
  household
• 4:30
  formations
• 4:30
  are
• 4:30
  different.
• 4:31
  So
• 4:31
  say
• 4:31
  you
• 4:31
  have
• 4:31
  the
• 4:32
  same
• 4:32
  two
• 4:32
  people,
• 4:33
  but
• 4:33
  each
• 4:33
  person
• 4:34
  is
• 4:34
  single,
• 4:34
  they
• 4:34
  don't
• 4:34
  have
• 4:34
  any
• 4:35
  children,
• 4:35
  they're
• 4:35
  not
• 4:36
  rooming
• 4:36
  together.
• 4:36
  So
• 4:37
  now
• 4:37
  you
• 4:37
  have
• 4:38
  two
• 4:38
  separate
• 4:38
  housing
• 4:38
  units.
• 4:39
  So
• 4:39
  a
• 4:39
  household
• 4:40
  formation
• 4:40
  is
• 4:40
  going
• 4:40
  to
• 4:40
  be
• 4:41
  demand
• 4:41
  for
• 4:41
  housing
• 4:41
  in
• 4:41
  the
• 4:42
  area.
• 4:42
  So
• 4:42
  definitely
• 4:43
  those
• 4:43
  market
• 4:44
  trends
• 4:44
  are
• 4:44
  absolutely.
• 4:45
  So
• 4:46
  another
• 4:46
  thing
• 4:47
  is
• 4:47
  demand,
• 4:47
  right?
• 4:48
  You
• 4:48
  got
• 4:48
  to
• 4:48
  look
• 4:48
  at
• 4:48
  local
• 4:49
  rental
• 4:49
  demand
• 4:49
  in
• 4:50
  the
• 4:50
  area.
• 4:50
  So
• 4:50
  what
• 4:51
  do
• 4:51
  you
• 4:51
  want
• 4:51
  to
• 4:51
  see?
• 4:52
  Well,
• 4:52
  ideally,
• 4:52
  if
• 4:52
  you're
• 4:52
  buying
• 4:53
  in
• 4:53
  an
• 4:53
  area,
• 4:53
  you
• 4:54
  want
• 4:54
  to
• 4:54
  see
• 4:54
  lower
• 4:54
  vacancy
• 4:55
  rates
• 4:55
  because
• 4:55
  that's
• 4:55
  drawing
• 4:56
  demand.
• 4:56
  Now
• 4:57
  are
• 4:57
  there
• 4:57
  times
• 4:58
  when
• 4:58
  there
• 4:58
  could
• 4:58
  be
• 4:58
  a
• 4:59
  buy
• 5:00
  in
• 5:00
  areas
• 5:00
  that
• 5:00
  don't
• 5:01
  have
• 5:01
  that?
• 5:01
  Sometimes,
• 5:02
  but
• 5:02
  only
• 5:02
  if
• 5:03
  you
• 5:03
  can
• 5:03
  see
• 5:03
  there's
• 5:03
  already
• 5:03
  a
• 5:04
  clear
• 5:04
  path
• 5:04
  in
• 5:05
  progress.
• 5:06
  If
• 5:06
  there's
• 5:07
  not,
• 5:07
  you're
• 5:07
  only
• 5:07
  buying
• 5:07
  a
• 5:08
  riskier
• 5:08
  property.
• 5:09
  That's
• 5:09
  going
• 5:09
  to
• 5:09
  be
• 5:09
  tougher.
• 5:10
  Do
• 5:10
  you
• 5:10
  agree
• 5:10
  with
• 5:10
  that,
• 5:10
  Erica?
• 5:11
  I
• 5:11
  do.
• 5:11
  And
• 5:12
  I
• 5:12
  guess,
• 5:12
  like,
• 5:12
  what
• 5:12
  do
• 5:13
  you
• 5:13
  see
• 5:13
  as
• 5:13
  far
• 5:13
  as
• 5:13
  like
• 5:14
  acceptable
• 5:14
  vacancy
• 5:15
  rates
• 5:15
  in
• 5:16
  a
• 5:16
  particular
• 5:16
  market?
• 5:17
  Well,
• 5:17
  ideally
• 5:18
  you
• 5:18
  want
• 5:18
  to
• 5:18
  be
• 5:18
  somewhere
• 5:19
  between
• 5:19
  5
• 5:20
  and
• 5:20
  10%,
• 5:20
  is
• 5:20
  what
• 5:20
  I
• 5:21
  would
• 5:21
  tell
• 5:21
  you.
• 5:21
  Most
• 5:21
  times
• 5:21
  in
• 5:22
  the
• 5:22
  last
• 5:22
  couple
• 5:23
  of
• 5:23
  years,
• 5:23
  I
• 5:23
  think
• 5:23
  a
• 5:23
  lot
• 5:23
  of
• 5:24
  people
• 5:24
  probably
• 5:24
  got
• 5:24
  very
• 5:25
  spoiled
• 5:25
  with
• 5:25
  sub
• 5:26
  5%.
• 5:26
  That's
• 5:27
  probably
• 5:27
  not
• 5:28
  sustainable
• 5:28
  in
• 5:28
  the
• 5:28
  long
• 5:29
  term.
• 5:29
  Now
• 5:29
  in
• 5:30
  some
• 5:30
  markets
• 5:30
  they're
• 5:30
  obviously,
• 5:31
  you
• 5:31
  know,
• 5:32
  every
• 5:32
  market's
• 5:32
  going
• 5:33
  to
• 5:33
  be
• 5:33
  different,
• 5:33
  right?
• 5:33
  So
• 5:33
  it's
• 5:34
  going
• 5:34
  to
• 5:34
  be
• 5:34
  different.
• 5:34
  If
• 5:34
  you're
• 5:34
  looking
• 5:35
  in
• 5:35
  Charlotte,
• 5:36
  North
• 5:36
  Carolina
• 5:37
  or
• 5:37
  Indianapolis,
• 5:38
  Indiana
• 5:39
  or
• 5:39
  Los
• 5:39
  Angeles,
• 5:39
  they're
• 5:40
  going
• 5:40
  to
• 5:40
  be
• 5:40
  very
• 5:40
  different
• 5:40
  markets
• 5:41
  and
• 5:41
  each
• 5:41
  one's
• 5:41
  going
• 5:41
  to
• 5:41
  have
• 5:41
  different
• 5:42
  numbers
• 5:43
  you're
• 5:43
  looking
• 5:43
  for.
• 5:44
  But
• 5:44
  generally
• 5:44
  somewhere
• 5:45
  in
• 5:45
  that
• 5:45
  5
• 5:45
  to
• 5:45
  10%
• 5:46
  range
• 5:46
  I
• 5:46
  think
• 5:46
  is
• 5:46
  realistic.
• 5:47
  You
• 5:47
  know,
• 5:47
  a
• 5:48
  lot
• 5:48
  of
• 5:48
  the
• 5:48
  Sunbelt
• 5:48
  freezing
• 5:49
  markets
• 5:49
  are
• 5:50
  double
• 5:50
  digits
• 5:50
  right
• 5:50
  now.
• 5:51
  Now,
• 5:51
  most
• 5:52
  likely
• 5:52
  that's
• 5:52
  not
• 5:52
  going
• 5:52
  to
• 5:53
  be
• 5:53
  a
• 5:53
  long
• 5:53
  term
• 5:53
  trend,
• 5:53
  it's
• 5:54
  a
• 5:54
  short
• 5:54
  term
• 5:54
  one.
• 5:55
  But
• 5:55
  there's
• 5:55
  a
• 5:55
  lot
• 5:55
  of
• 5:55
  new
• 5:56
  supply,
• 5:56
  so
• 5:56
  it's
• 5:56
  going
• 5:56
  to
• 5:56
  take
• 5:57
  time
• 5:57
  for
• 5:57
  that
• 5:57
  to
• 5:57
  absorb.
• 5:58
  Very
• 5:58
  interesting.
• 5:59
  And
• 5:59
  I
• 5:59
  guess
• 5:59
  also
• 6:00
  some
• 6:00
  of
• 6:00
  those
• 6:00
  data
• 6:01
  points
• 6:01
  that
• 6:01
  I
• 6:01
  look
• 6:01
  at
• 6:02
  within,
• 6:02
  like
• 6:02
  a
• 6:02
  location
• 6:03
  economic
• 6:03
  analysis,
• 6:04
  when
• 6:04
  I'm
• 6:04
  doing
• 6:04
  one
• 6:05
  of
• 6:05
  those
• 6:05
  for
• 6:05
  a
• 6:06
  specific
• 6:06
  location
• 6:07
  would
• 6:07
  be
• 6:07
  the
• 6:07
  amount
• 6:08
  of
• 6:08
  units
• 6:08
  being
• 6:08
  built.
• 6:09
  So
• 6:09
  that
• 6:09
  you
• 6:09
  can
• 6:10
  also
• 6:10
  measure
• 6:11
  the
• 6:11
  household
• 6:12
  formation.
• 6:13
  Right.
• 6:13
  How
• 6:13
  many
• 6:13
  people
• 6:14
  are
• 6:14
  owning
• 6:14
  versus
• 6:14
  renting,
• 6:15
  and
• 6:16
  you're
• 6:16
  measuring
• 6:16
  that
• 6:16
  against
• 6:17
  how
• 6:17
  many
• 6:17
  units
• 6:18
  are
• 6:18
  being
• 6:18
  built
• 6:18
  and
• 6:18
  you're
• 6:19
  at
• 6:19
  the
• 6:19
  trajectory
• 6:20
  of
• 6:20
  how
• 6:20
  much
• 6:20
  that's
• 6:21
  keeping
• 6:21
  up
• 6:21
  and
• 6:21
  if
• 6:21
  there's
• 6:22
  going
• 6:22
  to
• 6:22
  be
• 6:22
  a
• 6:22
  deficit
• 6:22
  or
• 6:23
  not.
• 6:23
  So
• 6:23
  I
• 6:23
  think
• 6:24
  that's
• 6:24
  another
• 6:24
  one
• 6:24
  of
• 6:24
  the
• 6:24
  data
• 6:25
  points
• 6:25
  on
• 6:25
  the
• 6:25
  LEA
• 6:25
  that
• 6:26
  I
• 6:26
  pull
• 6:26
  up
• 6:26
  that
• 6:26
  I
• 6:26
  think
• 6:27
  is
• 6:27
  also
• 6:27
  important.
• 6:28
  And
• 6:28
  when
• 6:28
  you
• 6:28
  get
• 6:28
  familiar
• 6:29
  with
• 6:29
  those
• 6:29
  data
• 6:29
  points,
• 6:30
  especially
• 6:31
  as
• 6:31
  a
• 6:31
  market
• 6:32
  snapshot,
• 6:32
  you
• 6:32
  know,
• 6:33
  it's
• 6:33
  super
• 6:33
  easy
• 6:33
  to
• 6:34
  look
• 6:34
  at
• 6:34
  one
• 6:34
  and
• 6:34
  go,
• 6:34
  okay,
• 6:35
  this
• 6:35
  is
• 6:35
  a
• 6:35
  market
• 6:35
  I
• 6:36
  want
• 6:36
  to
• 6:36
  explore
• 6:36
  investing
• 6:37
  in,
• 6:37
  or
• 6:38
  this
• 6:38
  is
• 6:38
  a
• 6:38
  market
• 6:38
  that
• 6:38
  I'm
• 6:39
  not
• 6:39
  going
• 6:39
  to
• 6:39
  invest
• 6:40
  in.
• 6:40
  And
• 6:40
  I
• 6:41
  think
• 6:41
  getting
• 6:41
  good
• 6:41
  at
• 6:41
  looking
• 6:42
  at
• 6:42
  those
• 6:42
  data
• 6:43
  points
• 6:43
  is
• 6:43
  really
• 6:43
  important
• 6:44
  for
• 6:44
  investing
• 6:44
  in
• 6:44
  multifamily.
• 6:45
  Absolutely.
• 6:46
  And
• 6:47
  one
• 6:47
  of
• 6:47
  the
• 6:47
  data
• 6:47
  points
• 6:48
  I
• 6:48
  think
• 6:48
  also
• 6:48
  just
• 6:48
  the
• 6:48
  renter
• 6:49
  profile.
• 6:49
  Right.
• 6:49
  So
• 6:50
  what
• 6:50
  does
• 6:50
  the
• 6:51
  renter
• 6:51
  look
• 6:51
  like?
• 6:52
  So
• 6:52
  what
• 6:52
  are
• 6:52
  their
• 6:53
  income
• 6:53
  demographics?
• 6:54
  So
• 6:54
  if
• 6:54
  you're
• 6:55
  buying
• 6:55
  a
• 6:56
  luxury
• 6:56
  property,
• 6:57
  but
• 6:57
  it's
• 6:57
  in
• 6:57
  an
• 6:57
  area
• 6:57
  that
• 6:58
  has,
• 6:58
  you
• 6:59
  know,
• 6:59
  workforce,
• 6:59
  housing
• 7:00
  demographics,
• 7:00
  it's
• 7:01
  probably
• 7:01
  not
• 7:01
  going
• 7:01
  to
• 7:01
  be
• 7:01
  a
• 7:01
  great
• 7:02
  mix.
• 7:02
  There's
• 7:02
  some
• 7:02
  properties
• 7:03
  that
• 7:03
  I've
• 7:03
  been
• 7:03
  looking
• 7:03
  at
• 7:03
  lately
• 7:04
  that,
• 7:04
  you
• 7:04
  know,
• 7:04
  they're,
• 7:05
  they're
• 7:05
  nice,
• 7:05
  you
• 7:05
  know,
• 7:06
  what
• 7:06
  you
• 7:06
  call
• 7:06
  class
• 7:06
  A
• 7:07
  property,
• 7:07
  luxury
• 7:08
  buildings,
• 7:08
  all
• 7:08
  the
• 7:08
  latest
• 7:09
  amenities.
• 7:09
  The
• 7:10
  problem
• 7:10
  is
• 7:10
  the
• 7:11
  developers
• 7:11
  may
• 7:11
  have
• 7:12
  been
• 7:12
  a
• 7:12
  little
• 7:12
  ambitious
• 7:12
  with
• 7:13
  the
• 7:13
  areas
• 7:13
  they
• 7:13
  built
• 7:13
  them
• 7:14
  in.
• 7:14
  And
• 7:14
  maybe
• 7:15
  they
• 7:15
  thought
• 7:15
  these
• 7:15
  areas
• 7:15
  would
• 7:16
  gentrify.
• 7:16
  And
• 7:16
  they
• 7:16
  might
• 7:16
  gentrify,
• 7:17
  let
• 7:17
  me
• 7:17
  be
• 7:17
  clear.
• 7:18
  But
• 7:18
  it
• 7:18
  might
• 7:18
  just
• 7:18
  take
• 7:18
  longer
• 7:19
  than
• 7:19
  they
• 7:19
  anticipated.
• 7:20
  So
• 7:20
  because
• 7:21
  of
• 7:21
  that,
• 7:21
  their
• 7:21
  vacancies
• 7:22
  are
• 7:22
  higher
• 7:23
  and
• 7:23
  these
• 7:23
  properties
• 7:23
  are
• 7:24
  being
• 7:24
  sold
• 7:24
  cheaply.
• 7:24
  So
• 7:24
  you
• 7:25
  have
• 7:25
  to
• 7:25
  really
• 7:25
  understand
• 7:26
  what
• 7:26
  that
• 7:26
  demographic
• 7:27
  is
• 7:27
  and
• 7:28
  does
• 7:28
  it
• 7:28
  line
• 7:28
  up
• 7:28
  with
• 7:29
  what
• 7:29
  you're
• 7:29
  buying?
• 7:29
  Absolutely.
• 7:30
  And
• 7:31
  I
• 7:31
  will
• 7:31
  add
• 7:31
  to
• 7:31
  that
• 7:31
  that
• 7:32
  I
• 7:32
  see
• 7:32
  also
• 7:33
  sometimes
• 7:33
  properties
• 7:34
  that
• 7:34
  are
• 7:34
  located
• 7:35
  near
• 7:35
  military
• 7:36
  bases.
• 7:36
  And
• 7:37
  for
• 7:37
  instance,
• 7:38
  there
• 7:38
  was
• 7:38
  in
• 7:38
  Vicksburg,
• 7:39
  Mississippi
• 7:40
  when
• 7:40
  I
• 7:40
  was
• 7:40
  driving
• 7:40
  my
• 7:40
  Tesla
• 7:41
  to
• 7:41
  Austin,
• 7:41
  Texas
• 7:42
  From
• 7:42
  Charlotte
• 7:42
  in
• 7:43
  2022,
• 7:44
  some
• 7:44
  of
• 7:44
  the
• 7:44
  homes
• 7:44
  were
• 7:44
  selling
• 7:45
  for
• 7:45
  80
• 7:45
  grand,
• 7:46
  were
• 7:46
  renting
• 7:46
  for
• 7:46
  as
• 7:47
  much
• 7:47
  as
• 7:47
  1400amonth.
• 7:48
  And
• 7:48
  I'm
• 7:48
  like,
• 7:49
  what
• 7:49
  is
• 7:49
  this
• 7:49
  Magic
• 7:50
  that's
• 7:50
  happening
• 7:50
  over
• 7:51
  here.
• 7:51
  And
• 7:51
  it
• 7:52
  was
• 7:52
  because
• 7:52
  they
• 7:52
  have
• 7:52
  the
• 7:52
  Army
• 7:53
  Corp
• 7:53
  of
• 7:53
  Engineers
• 7:53
  there.
• 7:54
  And
• 7:55
  what,
• 7:55
  you
• 7:55
  know,
• 7:56
  analyzing
• 7:56
  something
• 7:56
  like
• 7:57
  that,
• 7:57
  it's
• 7:57
  like,
• 7:57
  okay,
• 7:58
  is
• 7:58
  this
• 7:58
  a
• 7:58
  wise
• 7:58
  investment
• 7:59
  based
• 7:59
  on
• 8:00
  that's
• 8:00
  basically
• 8:01
  the
• 8:01
  only
• 8:01
  employer
• 8:01
  for
• 8:02
  the
• 8:02
  entire
• 8:02
  area.
• 8:03
  Right.
• 8:03
  Like
• 8:03
  there
• 8:04
  is
• 8:04
  no
• 8:04
  other
• 8:04
  economy
• 8:05
  outside
• 8:05
  of
• 8:05
  that
• 8:05
  almost
• 8:06
  for
• 8:06
  that
• 8:06
  area
• 8:06
  in
• 8:07
  that
• 8:07
  location.
• 8:07
  So
• 8:08
  would
• 8:08
  a
• 8:08
  larger
• 8:09
  multifamily
• 8:09
  asset
• 8:09
  make
• 8:10
  sense
• 8:10
  to
• 8:10
  invest
• 8:10
  in
• 8:10
  that
• 8:11
  area?
• 8:11
  And
• 8:11
  then
• 8:12
  again,
• 8:12
  you're
• 8:12
  looking
• 8:12
  at
• 8:12
  market
• 8:13
  trends.
• 8:13
  Army
• 8:14
  Corp
• 8:14
  of
• 8:14
  Engineers
• 8:15
  was
• 8:15
  actually
• 8:15
  purchasing
• 8:16
  land
• 8:16
  to
• 8:16
  continue
• 8:17
  development
• 8:17
  and
• 8:18
  you
• 8:18
  could
• 8:18
  see
• 8:18
  they
• 8:18
  had
• 8:18
  a
• 8:19
  very
• 8:19
  strong
• 8:19
  development
• 8:20
  business
• 8:20
  plan
• 8:21
  to
• 8:21
  remain
• 8:21
  in
• 8:21
  the
• 8:21
  area
• 8:22
  and
• 8:22
  expand
• 8:23
  in
• 8:23
  the
• 8:23
  area.
• 8:24
  So
• 8:24
  because
• 8:24
  of
• 8:25
  something
• 8:25
  like
• 8:25
  that,
• 8:25
  perhaps
• 8:26
  it
• 8:26
  would
• 8:26
  have
• 8:26
  been
• 8:26
  a
• 8:26
  good
• 8:26
  investment
• 8:27
  in
• 8:27
  that
• 8:27
  area.
• 8:28
  So
• 8:28
  I
• 8:28
  think
• 8:29
  that's
• 8:29
  also
• 8:30
  something
• 8:30
  I
• 8:30
  look
• 8:30
  at.
• 8:31
  For
• 8:31
  sure
• 8:32
  you
• 8:32
  touched
• 8:32
  on
• 8:32
  something
• 8:33
  really
• 8:33
  important.
• 8:33
  So
• 8:34
  you
• 8:34
  want
• 8:34
  to
• 8:35
  be
• 8:35
  investing
• 8:35
  in
• 8:35
  places
• 8:36
  where
• 8:36
  you
• 8:36
  have
• 8:36
  diverse
• 8:37
  economies.
• 8:38
  Now
• 8:38
  with
• 8:38
  single
• 8:39
  family,
• 8:39
  that's
• 8:39
  important,
• 8:40
  but
• 8:40
  it
• 8:40
  may
• 8:40
  not
• 8:40
  be
• 8:41
  as
• 8:41
  important
• 8:41
  because
• 8:41
  you're
• 8:42
  trying
• 8:42
  to
• 8:42
  fill
• 8:42
  a
• 8:42
  single
• 8:43
  unit.
• 8:43
  When
• 8:43
  you're
• 8:43
  in
• 8:43
  multifamily,
• 8:45
  Whether
• 8:45
  it's
• 8:45
  a
• 8:45
  20
• 8:46
  unit
• 8:46
  or
• 8:46
  a
• 8:46
  200
• 8:46
  unit
• 8:47
  property,
• 8:47
  you're
• 8:47
  trying
• 8:48
  to
• 8:48
  fill
• 8:48
  units
• 8:48
  at
• 8:49
  scale.
• 8:49
  So
• 8:50
  you
• 8:50
  want
• 8:50
  that
• 8:50
  economic
• 8:51
  diversity
• 8:51
  because
• 8:52
  there's
• 8:52
  a
• 8:52
  higher
• 8:53
  probability
• 8:53
  that
• 8:54
  you're
• 8:54
  going
• 8:54
  to
• 8:54
  have
• 8:54
  more
• 8:54
  vacancy
• 8:55
  if
• 8:55
  you
• 8:55
  only
• 8:56
  have
• 8:56
  a
• 8:56
  one
• 8:56
  trick
• 8:56
  pony
• 8:57
  type
• 8:57
  of
• 8:57
  economy.
• 8:57
  Now
• 8:58
  for
• 8:58
  many
• 8:58
  years,
• 8:59
  Las
• 8:59
  Vegas
• 8:59
  has
• 8:59
  had
• 8:59
  a
• 9:00
  reputation
• 9:00
  as
• 9:00
  that.
• 9:00
  Las
• 9:01
  Vegas
• 9:01
  is
• 9:01
  actually
• 9:01
  a
• 9:01
  lot
• 9:01
  more
• 9:02
  diverse
• 9:02
  now
• 9:02
  than
• 9:02
  it
• 9:02
  used
• 9:02
  to
• 9:02
  be.
• 9:03
  At
• 9:03
  one
• 9:03
  time
• 9:03
  it
• 9:03
  was
• 9:04
  truly
• 9:04
  entertainment
• 9:05
  and
• 9:05
  gaming.
• 9:05
  Now
• 9:05
  that's
• 9:05
  about
• 9:06
  30%
• 9:06
  of
• 9:06
  the
• 9:06
  economy,
• 9:07
  which
• 9:07
  is
• 9:07
  still
• 9:07
  a
• 9:07
  big
• 9:07
  chunk,
• 9:08
  but
• 9:08
  it's
• 9:08
  a
• 9:09
  lot
• 9:09
  more
• 9:09
  diverse
• 9:09
  than
• 9:09
  it
• 9:10
  used
• 9:10
  to
• 9:10
  be.
• 9:10
  The
• 9:10
  same
• 9:10
  thing
• 9:11
  with
• 9:11
  Detroit.
• 9:11
  Detroit's
• 9:12
  got,
• 9:12
  you
• 9:12
  know,
• 9:12
  heavy
• 9:13
  reliance
• 9:13
  on
• 9:13
  the
• 9:13
  auto
• 9:14
  industry.
• 9:14
  So
• 9:15
  you
• 9:15
  want
• 9:15
  to
• 9:15
  look
• 9:16
  at
• 9:16
  those
• 9:16
  things
• 9:16
  and
• 9:16
  factor
• 9:17
  them
• 9:17
  in.
• 9:17
  Does
• 9:17
  it
• 9:17
  mean
• 9:17
  you
• 9:18
  shouldn't
• 9:18
  buy
• 9:18
  property
• 9:18
  in
• 9:19
  that
• 9:19
  area?
• 9:19
  No,
• 9:20
  but
• 9:20
  you
• 9:20
  got
• 9:20
  to
• 9:20
  make
• 9:20
  sure
• 9:20
  you
• 9:20
  do
• 9:21
  your
• 9:21
  homework
• 9:21
  and
• 9:21
  you
• 9:21
  feel
• 9:21
  very
• 9:22
  confident
• 9:22
  and
• 9:22
  that
• 9:23
  you're
• 9:23
  buying
• 9:23
  it
• 9:23
  at
• 9:23
  a
• 9:23
  price
• 9:23
  that
• 9:24
  reflects
• 9:24
  whatever
• 9:25
  that
• 9:25
  risk
• 9:25
  is.
• 9:26
  Right,
• 9:26
  right.
• 9:26
  And
• 9:26
  I
• 9:27
  guess
• 9:27
  also
• 9:27
  calculating
• 9:28
  in
• 9:28
  whatever
• 9:29
  you
• 9:29
  could
• 9:29
  predict
• 9:30
  for
• 9:30
  vacancy
• 9:31
  rates
• 9:32
  based
• 9:32
  on
• 9:32
  that
• 9:32
  if
• 9:32
  you
• 9:32
  were
• 9:33
  going
• 9:33
  to
• 9:33
  purchase
• 9:33
  that
• 9:33
  asset,
• 9:34
  calculating
• 9:34
  in
• 9:34
  higher
• 9:35
  vacancy
• 9:35
  rate,
• 9:35
  potentially.
• 9:36
  So
• 9:37
  yeah,
• 9:37
  very
• 9:37
  good
• 9:37
  points.
• 9:38
  Yeah.
• 9:38
  And
• 9:39
  another
• 9:39
  thing
• 9:39
  you
• 9:39
  want
• 9:39
  to
• 9:39
  look
• 9:40
  at
• 9:40
  is
• 9:40
  affordability.
• 9:41
  So
• 9:41
  there's
• 9:42
  two
• 9:42
  major
• 9:42
  issues
• 9:42
  we
• 9:43
  have
• 9:43
  with
• 9:43
  housing
• 9:43
  throughout
• 9:44
  various
• 9:44
  markets
• 9:44
  in
• 9:44
  the
• 9:45
  country.
• 9:45
  We
• 9:45
  have
• 9:45
  a
• 9:46
  supply
• 9:46
  issue
• 9:46
  in
• 9:46
  some
• 9:47
  cases
• 9:47
  and
• 9:47
  in
• 9:47
  other
• 9:48
  cases
• 9:48
  an
• 9:48
  affordability
• 9:49
  issue
• 9:50
  in
• 9:50
  some
• 9:50
  cases
• 9:50
  both.
• 9:51
  So
• 9:52
  why
• 9:52
  is
• 9:52
  affordability
• 9:53
  important?
• 9:53
  Well,
• 9:54
  if
• 9:54
  you're
• 9:54
  looking
• 9:54
  to
• 9:55
  charge
• 9:55
  $2,000
• 9:56
  a
• 9:56
  month
• 9:56
  rent,
• 9:57
  but
• 9:57
  you're
• 9:57
  in
• 9:57
  an
• 9:58
  area
• 9:58
  where
• 9:58
  the
• 9:58
  Median
• 9:59
  income
• 9:59
  is
• 10:00
  32,000,
• 10:01
  it's
• 10:01
  probably
• 10:02
  not
• 10:02
  going
• 10:02
  to
• 10:02
  work.
• 10:02
  What's
• 10:03
  going
• 10:03
  to
• 10:03
  happen
• 10:03
  is
• 10:03
  you're
• 10:03
  going
• 10:03
  to
• 10:04
  constantly
• 10:04
  be
• 10:04
  replacing
• 10:04
  tenants
• 10:05
  because
• 10:05
  you're
• 10:05
  going
• 10:05
  to
• 10:05
  have
• 10:05
  people
• 10:05
  that
• 10:06
  are
• 10:06
  always
• 10:06
  being
• 10:06
  evicted
• 10:07
  and
• 10:07
  you're
• 10:08
  going
• 10:08
  to
• 10:08
  be
• 10:08
  spending
• 10:08
  more
• 10:08
  money
• 10:09
  turning
• 10:09
  units
• 10:09
  than
• 10:10
  doing
• 10:10
  anything
• 10:10
  else.
• 10:10
  So
• 10:11
  most
• 10:11
  people
• 10:11
  aren't
• 10:12
  underwriting
• 10:12
  deals
• 10:13
  that
• 10:13
  way.
• 10:13
  So
• 10:13
  you
• 10:13
  really
• 10:13
  want
• 10:14
  to
• 10:14
  make
• 10:14
  sure
• 10:14
  that
• 10:14
  the
• 10:15
  affordability
• 10:15
  aspect
• 10:16
  is
• 10:16
  there
• 10:16
  and
• 10:16
  that
• 10:17
  whatever
• 10:17
  rent
• 10:17
  you're
• 10:17
  looking
• 10:18
  to
• 10:18
  charge
• 10:18
  is
• 10:18
  in
• 10:18
  line
• 10:19
  with
• 10:19
  the
• 10:19
  income
• 10:20
  for
• 10:20
  the
• 10:20
  area.
• 10:20
  And
• 10:20
  I
• 10:20
  would
• 10:21
  say
• 10:21
  being
• 10:21
  very
• 10:21
  conservative
• 10:22
  on
• 10:22
  those
• 10:22
  numbers
• 10:23
  as
• 10:23
  well,
• 10:23
  for
• 10:23
  sure.
• 10:24
  And
• 10:24
  that's
• 10:24
  where
• 10:24
  having
• 10:25
  a
• 10:25
  good
• 10:25
  team,
• 10:25
  no
• 10:26
  matter
• 10:26
  what
• 10:26
  size
• 10:27
  multifamily
• 10:27
  you
• 10:28
  are
• 10:28
  looking
• 10:28
  to
• 10:28
  acquire,
• 10:29
  having
• 10:29
  a
• 10:29
  really
• 10:29
  good
• 10:30
  property
• 10:30
  manager
• 10:31
  is
• 10:32
  so
• 10:32
  important
• 10:33
  because
• 10:33
  beyond
• 10:33
  just
• 10:33
  what
• 10:34
  a
• 10:34
  real
• 10:34
  estate
• 10:34
  broker
• 10:34
  can
• 10:35
  tell
• 10:35
  you
• 10:35
  on
• 10:35
  rental
• 10:35
  rates,
• 10:36
  property
• 10:36
  managers
• 10:37
  will
• 10:37
  know
• 10:37
  a
• 10:37
  lot
• 10:38
  more
• 10:38
  these
• 10:38
  kind
• 10:38
  of
• 10:38
  details.
• 10:39
  And
• 10:39
  so
• 10:40
  it's
• 10:40
  again,
• 10:40
  really
• 10:41
  important
• 10:41
  to
• 10:41
  have
• 10:41
  a
• 10:41
  good
• 10:41
  work
• 10:42
  team
• 10:42
  when
• 10:42
  you're
• 10:42
  doing
• 10:42
  this
• 10:43
  kind
• 10:43
  of
• 10:43
  thing,
• 10:43
  to
• 10:43
  run
• 10:43
  that
• 10:43
  kind
• 10:44
  of
• 10:44
  stuff
• 10:44
  by
• 10:44
  people.
• 10:45
  Totally.
• 10:46
  So
• 10:46
  what
• 10:46
  else
• 10:46
  do
• 10:47
  you
• 10:47
  want
• 10:47
  to
• 10:47
  look
• 10:47
  for?
• 10:47
  Well,
• 10:48
  let's
• 10:48
  talk
• 10:48
  about
• 10:48
  neighborhood
• 10:49
  characteristics.
• 10:50
  Areas
• 10:50
  that
• 10:50
  are
• 10:50
  walkable
• 10:51
  with
• 10:51
  amenities
• 10:52
  like
• 10:53
  shopping
• 10:53
  and
• 10:53
  dining
• 10:53
  and
• 10:54
  transit.
• 10:54
  Why
• 10:54
  is
• 10:55
  that
• 10:55
  important?
• 10:55
  Well,
• 10:56
  it's
• 10:56
  important
• 10:56
  because
• 10:57
  a
• 10:57
  lot
• 10:57
  of
• 10:57
  people
• 10:58
  that
• 10:58
  are
• 10:58
  living
• 10:58
  in
• 10:59
  these
• 10:59
  apartment
• 10:59
  buildings
• 11:00
  and
• 11:00
  these
• 11:00
  communities,
• 11:01
  they
• 11:01
  want
• 11:01
  things
• 11:02
  that
• 11:02
  are
• 11:02
  accessible
• 11:02
  to
• 11:02
  them.
• 11:03
  Yeah,
• 11:03
  they're
• 11:03
  moving
• 11:03
  there
• 11:04
  for
• 11:04
  convenience.
• 11:04
  If
• 11:05
  they
• 11:05
  wanted
• 11:06
  space
• 11:06
  and
• 11:06
  isolation,
• 11:06
  they'd
• 11:07
  be
• 11:07
  moving
• 11:07
  out
• 11:07
  of
• 11:07
  the
• 11:07
  city
• 11:08
  and
• 11:08
  they'd
• 11:08
  be
• 11:08
  going
• 11:08
  and
• 11:09
  buying
• 11:09
  or
• 11:09
  renting
• 11:09
  a
• 11:09
  house.
• 11:10
  But
• 11:10
  in
• 11:10
  this
• 11:10
  case,
• 11:10
  they're
• 11:10
  looking
• 11:11
  for
• 11:11
  city
• 11:11
  living.
• 11:11
  They
• 11:12
  want
• 11:12
  convenience,
• 11:12
  they
• 11:12
  want
• 11:13
  amenities,
• 11:13
  and
• 11:14
  they
• 11:14
  want
• 11:14
  things
• 11:14
  that
• 11:14
  are
• 11:14
  close
• 11:14
  to
• 11:15
  them.
• 11:15
  You
• 11:15
  know,
• 11:15
  if
• 11:15
  you
• 11:16
  notice
• 11:16
  the
• 11:16
  most
• 11:16
  in
• 11:17
  demand
• 11:17
  areas
• 11:17
  in
• 11:17
  most
• 11:18
  cities
• 11:18
  usually
• 11:18
  have
• 11:19
  a
• 11:19
  lot
• 11:19
  of
• 11:20
  conveniences
• 11:20
  in
• 11:20
  very
• 11:20
  close
• 11:21
  proximity.
• 11:21
  That's
• 11:22
  not
• 11:22
  by
• 11:22
  accident.
• 11:22
  Yeah,
• 11:23
  absolutely.
• 11:24
  And
• 11:24
  I
• 11:24
  think
• 11:25
  that's
• 11:25
  becoming
• 11:26
  more
• 11:26
  and
• 11:26
  more
• 11:26
  important.
• 11:27
  You
• 11:27
  know,
• 11:27
  you
• 11:27
  have
• 11:27
  your
• 11:28
  tertiary
• 11:28
  markets,
• 11:29
  your
• 11:29
  secondary
• 11:29
  markets,
• 11:30
  and
• 11:30
  your
• 11:30
  primary
• 11:30
  markets,
• 11:31
  which
• 11:31
  are
• 11:31
  your
• 11:31
  major
• 11:32
  cities.
• 11:32
  And
• 11:32
  I
• 11:32
  think
• 11:33
  that
• 11:33
  as
• 11:33
  population
• 11:34
  growth
• 11:34
  happens
• 11:35
  in
• 11:35
  a
• 11:35
  certain
• 11:35
  area,
• 11:36
  like
• 11:36
  Charlotte,
• 11:36
  North
• 11:36
  Carolina,
• 11:37
  for
• 11:37
  instance,
• 11:37
  you
• 11:38
  know,
• 11:38
  we
• 11:38
  start
• 11:38
  to
• 11:39
  transition
• 11:39
  from
• 11:40
  a
• 11:40
  secondary
• 11:41
  to
• 11:41
  a
• 11:41
  primary
• 11:42
  city.
• 11:42
  And
• 11:42
  I
• 11:42
  think
• 11:43
  within
• 11:43
  that,
• 11:44
  some
• 11:44
  of
• 11:44
  those
• 11:44
  transitions
• 11:45
  include
• 11:45
  people
• 11:46
  valuing
• 11:46
  walkability
• 11:47
  a
• 11:47
  lot
• 11:48
  more.
• 11:48
  Right.
• 11:48
  Because
• 11:49
  now
• 11:49
  we're
• 11:50
  looking
• 11:50
  for
• 11:50
  shorter
• 11:50
  commute
• 11:51
  times
• 11:51
  because
• 11:52
  to
• 11:52
  get
• 11:52
  from
• 11:52
  point
• 11:53
  A
• 11:53
  to
• 11:53
  point
• 11:53
  B
• 11:53
  is
• 11:54
  increasing
• 11:54
  due
• 11:54
  to
• 11:54
  traffic
• 11:55
  because
• 11:55
  of
• 11:55
  population
• 11:56
  growth.
• 11:56
  So
• 11:56
  I
• 11:56
  think
• 11:57
  that
• 11:57
  also
• 11:57
  depending
• 11:58
  knowing
• 11:58
  what
• 11:59
  type
• 11:59
  of
• 11:59
  city
• 11:59
  you're
• 11:59
  investing
• 12:00
  in
• 12:00
  and
• 12:00
  where
• 12:01
  it's
• 12:01
  at
• 12:01
  as
• 12:01
  far
• 12:02
  as
• 12:02
  trajectory
• 12:02
  for
• 12:03
  population
• 12:03
  growth
• 12:03
  is
• 12:03
  really
• 12:04
  important
• 12:04
  as
• 12:04
  well.
• 12:05
  How
• 12:05
  about
• 12:05
  crime
• 12:05
  rates?
• 12:06
  Does
• 12:06
  that
• 12:06
  factor
• 12:06
  into
• 12:07
  the
• 12:07
  equation?
• 12:07
  I
• 12:08
  think
• 12:08
  that
• 12:09
  factors
• 12:09
  into
• 12:10
  the
• 12:11
  tenant
• 12:11
  profile,
• 12:12
  to
• 12:12
  be
• 12:12
  honest.
• 12:12
  And
• 12:13
  I
• 12:13
  think
• 12:13
  that
• 12:13
  it's
• 12:14
  important,
• 12:14
  as
• 12:14
  we've
• 12:15
  spoken
• 12:15
  about
• 12:15
  previously,
• 12:16
  that
• 12:16
  when
• 12:16
  I
• 12:16
  work
• 12:17
  with
• 12:17
  investors
• 12:17
  that
• 12:17
  are
• 12:17
  out
• 12:18
  of
• 12:18
  state,
• 12:18
  that
• 12:18
  are
• 12:18
  more
• 12:19
  passive
• 12:19
  investors
• 12:21
  and
• 12:21
  not
• 12:21
  as
• 12:22
  hands
• 12:22
  on,
• 12:22
  and
• 12:22
  I
• 12:22
  know
• 12:23
  they're
• 12:23
  not
• 12:23
  going
• 12:23
  to
• 12:23
  be
• 12:23
  as
• 12:23
  hands
• 12:23
  on
• 12:24
  with
• 12:24
  the
• 12:24
  asset,
• 12:24
  they
• 12:25
  probably
• 12:25
  don't
• 12:25
  want
• 12:25
  to
• 12:26
  purchase
• 12:26
  class
• 12:27
  D
• 12:27
  assets
• 12:28
  because
• 12:28
  they're
• 12:29
  going
• 12:29
  to
• 12:29
  end
• 12:29
  up
• 12:29
  with
• 12:29
  a
• 12:30
  tenant
• 12:30
  profile
• 12:31
  that
• 12:31
  could
• 12:31
  require
• 12:32
  a
• 12:32
  lot
• 12:32
  more
• 12:32
  work
• 12:33
  and
• 12:33
  it
• 12:33
  requires
• 12:33
  somebody
• 12:34
  to
• 12:34
  be
• 12:34
  more
• 12:34
  hands
• 12:34
  on.
• 12:35
  So
• 12:35
  I
• 12:35
  think
• 12:36
  that
• 12:36
  crime,
• 12:37
  you
• 12:37
  know,
• 12:38
  it
• 12:38
  factors
• 12:38
  in
• 12:39
  a
• 12:39
  little
• 12:39
  bit,
• 12:39
  but
• 12:40
  really
• 12:40
  it
• 12:40
  factors
• 12:41
  into
• 12:41
  determining
• 12:41
  whether
• 12:42
  that's
• 12:42
  going
• 12:42
  to
• 12:42
  be
• 12:42
  your
• 12:42
  buy
• 12:43
  box
• 12:43
  in
• 12:43
  that
• 12:43
  area
• 12:43
  or
• 12:44
  not.
• 12:44
  Because
• 12:44
  there's
• 12:44
  still,
• 12:45
  I
• 12:45
  think
• 12:45
  appreciation,
• 12:46
  especially
• 12:46
  depending
• 12:46
  on
• 12:47
  the
• 12:47
  city
• 12:47
  or
• 12:48
  location
• 12:48
  it's
• 12:48
  in,
• 12:49
  there
• 12:49
  should
• 12:49
  still
• 12:49
  be
• 12:49
  a
• 12:49
  decent
• 12:50
  amount
• 12:50
  of
• 12:50
  appreciation
• 12:51
  for
• 12:51
  somebody
• 12:51
  looking
• 12:51
  to
• 12:51
  buy
• 12:51
  and
• 12:52
  hold,
• 12:52
  particularly
• 12:53
  in
• 12:53
  things
• 12:53
  like
• 12:53
  opportunity
• 12:54
  zones.
• 12:54
  Those
• 12:55
  are
• 12:55
  the
• 12:55
  good.
• 12:55
  That's
• 12:55
  good
• 12:56
  stuff,
• 12:56
  Charles.
• 12:56
  You
• 12:57
  know,
• 12:57
  I
• 12:57
  can
• 12:57
  go
• 12:58
  either
• 12:58
  way
• 12:58
  on
• 12:58
  opportunity
• 12:59
  zones.
• 12:59
  So
• 12:59
  opportunity
• 13:00
  zones
• 13:00
  do
• 13:00
  have
• 13:00
  benefits,
• 13:01
  but
• 13:01
  I
• 13:02
  think
• 13:02
  it
• 13:02
  depends
• 13:02
  how
• 13:02
  active
• 13:03
  of
• 13:03
  one
• 13:03
  you're
• 13:03
  buying
• 13:03
  in.
• 13:04
  You
• 13:04
  can
• 13:04
  buy
• 13:04
  in
• 13:04
  some
• 13:04
  that
• 13:04
  are
• 13:05
  dead
• 13:05
  and
• 13:05
  have
• 13:05
  nothing
• 13:05
  going
• 13:06
  on,
• 13:06
  and
• 13:06
  you'll
• 13:07
  probably
• 13:07
  see
• 13:07
  no
• 13:07
  appreciation
• 13:08
  in
• 13:08
  those
• 13:08
  areas.
• 13:09
  But
• 13:09
  then
• 13:09
  you
• 13:09
  can
• 13:09
  buy
• 13:09
  in
• 13:10
  others
• 13:10
  that
• 13:10
  have
• 13:10
  a
• 13:11
  lot
• 13:11
  of
• 13:11
  activity.
• 13:12
  And
• 13:12
  the
• 13:12
  area
• 13:12
  is
• 13:12
  totally
• 13:13
  gentrifying.
• 13:13
  In
• 13:13
  10
• 13:13
  years
• 13:14
  from
• 13:14
  now,
• 13:14
  it'll
• 13:14
  be
• 13:14
  a
• 13:15
  much
• 13:15
  different,
• 13:15
  more
• 13:16
  valuable
• 13:16
  area.
• 13:17
  You
• 13:17
  know,
• 13:17
  I
• 13:17
  mean,
• 13:18
  I'll
• 13:18
  use
• 13:18
  an
• 13:18
  example.
• 13:18
  So
• 13:19
  for
• 13:19
  any
• 13:19
  of
• 13:19
  the
• 13:19
  listeners,
• 13:20
  I'm
• 13:20
  in
• 13:20
  Charlotte,
• 13:21
  North
• 13:21
  Carolina,
• 13:21
  and
• 13:22
  Erica's
• 13:22
  right
• 13:22
  around
• 13:23
  there
• 13:23
  as
• 13:23
  well.
• 13:23
  So
• 13:23
  there's
• 13:24
  two
• 13:24
  opportunities.
• 13:24
  I
• 13:24
  was
• 13:25
  in
• 13:25
  Charlotte.
• 13:25
  One
• 13:26
  of
• 13:26
  those
• 13:26
  opportunities
• 13:27
  has
• 13:27
  a
• 13:27
  lot
• 13:28
  more
• 13:28
  activity
• 13:28
  than
• 13:29
  the
• 13:29
  other
• 13:29
  one.
• 13:29
  So
• 13:29
  the
• 13:30
  one
• 13:30
  that
• 13:30
  has
• 13:30
  more
• 13:30
  activity,
• 13:31
  it's
• 13:31
  a
• 13:32
  slow
• 13:32
  change.
• 13:32
  It's
• 13:32
  not
• 13:33
  going
• 13:33
  to
• 13:33
  be
• 13:33
  overnight,
• 13:33
  but
• 13:34
  in
• 13:34
  10
• 13:34
  years,
• 13:34
  you'll
• 13:35
  see
• 13:35
  that
• 13:35
  area
• 13:35
  be
• 13:35
  a
• 13:35
  lot
• 13:36
  more
• 13:36
  valuable
• 13:36
  because
• 13:37
  it's
• 13:38
  building
• 13:38
  new
• 13:39
  properties,
• 13:39
  it's
• 13:39
  creating
• 13:40
  new
• 13:40
  jobs,
• 13:40
  it's
• 13:40
  doing
• 13:41
  things
• 13:41
  that
• 13:41
  are
• 13:41
  spurring
• 13:42
  economic
• 13:42
  activity.
• 13:43
  You
• 13:43
  really
• 13:43
  have
• 13:44
  as
• 13:44
  much
• 13:44
  activity
• 13:45
  going
• 13:45
  on.
• 13:45
  So
• 13:45
  you
• 13:46
  may
• 13:46
  not
• 13:46
  see
• 13:46
  much
• 13:46
  of
• 13:46
  a
• 13:47
  change
• 13:47
  in
• 13:47
  10
• 13:47
  years.
• 13:48
  Yeah,
• 13:48
  you.
• 13:48
  The
• 13:49
  one
• 13:49
  with
• 13:49
  spurring
• 13:50
  activity
• 13:50
  at
• 13:50
  Lincoln
• 13:51
  Heights
• 13:51
  area
• 13:51
  is
• 13:52
  what
• 13:52
  you're
• 13:52
  referring
• 13:52
  to
• 13:52
  essentially
• 13:53
  west
• 13:53
  Charlotte.
• 13:54
  So
• 13:54
  that
• 13:54
  one's
• 13:54
  got
• 13:54
  a
• 13:54
  lot
• 13:54
  of
• 13:55
  development,
• 13:55
  a
• 13:55
  lot
• 13:55
  of.
• 13:55
  A
• 13:56
  lot
• 13:56
  of
• 13:56
  building,
• 13:56
  a
• 13:56
  lot
• 13:56
  of
• 13:57
  jobs.
• 13:57
  That's
• 13:57
  happening.
• 13:58
  That
• 13:58
  area
• 13:59
  is
• 13:59
  becoming
• 13:59
  literally
• 14:00
  more
• 14:00
  valuable
• 14:00
  overnight.
• 14:01
  Yep.
• 14:01
  And
• 14:02
  I
• 14:02
  think
• 14:02
  that
• 14:02
  development,
• 14:03
  the
• 14:03
  river
• 14:03
  district
• 14:04
  going
• 14:04
  in
• 14:04
  on
• 14:04
  the
• 14:04
  west
• 14:04
  side
• 14:05
  of
• 14:05
  the
• 14:05
  airport,
• 14:06
  we'll
• 14:06
  continue
• 14:06
  to
• 14:07
  see
• 14:07
  that
• 14:07
  appreciation
• 14:07
  over
• 14:08
  there.
• 14:08
  Very
• 14:08
  interesting.
• 14:09
  Good
• 14:09
  take.
• 14:10
  Yep.
• 14:10
  So
• 14:11
  then
• 14:11
  we
• 14:11
  have,
• 14:11
  aside
• 14:11
  from
• 14:12
  characteristics,
• 14:13
  you
• 14:13
  know,
• 14:13
  along
• 14:13
  the
• 14:13
  same
• 14:14
  line
• 14:14
  as
• 14:14
  characteristics,
• 14:14
  how
• 14:15
  about
• 14:15
  schools?
• 14:16
  So
• 14:16
  depending
• 14:17
  on
• 14:17
  your
• 14:17
  demographic,
• 14:18
  that
• 14:18
  can
• 14:18
  be
• 14:18
  very
• 14:18
  important.
• 14:19
  If
• 14:19
  you're
• 14:19
  buying
• 14:20
  a
• 14:20
  property
• 14:20
  that's
• 14:20
  going
• 14:21
  to
• 14:21
  have
• 14:21
  a
• 14:21
  lot
• 14:21
  of
• 14:21
  retirees,
• 14:22
  maybe
• 14:23
  that's
• 14:23
  not
• 14:23
  as
• 14:23
  important.
• 14:24
  But
• 14:24
  if
• 14:24
  you're
• 14:24
  buying
• 14:24
  a
• 14:24
  property
• 14:25
  where
• 14:25
  your
• 14:25
  tenant
• 14:25
  is
• 14:25
  going
• 14:26
  to
• 14:26
  be
• 14:26
  families,
• 14:26
  a
• 14:27
  lot
• 14:27
  of
• 14:27
  them
• 14:27
  want
• 14:27
  good
• 14:27
  schools.
• 14:28
  You
• 14:28
  know,
• 14:28
  they
• 14:28
  want
• 14:28
  to
• 14:28
  send
• 14:29
  their
• 14:29
  kids
• 14:29
  to
• 14:30
  schools
• 14:30
  where
• 14:30
  they're
• 14:30
  going
• 14:30
  to
• 14:30
  be
• 14:31
  safe
• 14:31
  schools
• 14:31
  where
• 14:31
  they're
• 14:31
  going
• 14:32
  to
• 14:32
  be
• 14:32
  getting
• 14:32
  quality
• 14:32
  education.
• 14:33
  So
• 14:33
  that's
• 14:34
  going
• 14:34
  to
• 14:34
  factor
• 14:34
  into
• 14:35
  how
• 14:35
  desirable
• 14:36
  those
• 14:36
  are.
• 14:37
  You
• 14:37
  agree?
• 14:37
  I
• 14:38
  do.
• 14:38
  And
• 14:38
  I
• 14:39
  use,
• 14:39
  I
• 14:39
  send
• 14:39
  clients
• 14:40
  to
• 14:40
  areavibes.com
• 14:42
  for
• 14:43
  like
• 14:43
  crime
• 14:43
  data
• 14:44
  statistics
• 14:44
  because
• 14:45
  it
• 14:45
  just
• 14:45
  gives
• 14:45
  it
• 14:45
  in
• 14:45
  a
• 14:45
  very
• 14:46
  user
• 14:46
  friendly
• 14:46
  format.
• 14:47
  And
• 14:47
  then
• 14:47
  greatschools.org
• 14:49
  is
• 14:49
  a
• 14:49
  really
• 14:49
  good
• 14:49
  place
• 14:50
  to
• 14:50
  research
• 14:51
  the
• 14:51
  schools
• 14:51
  in
• 14:52
  an
• 14:52
  area.
• 14:52
  They
• 14:53
  have
• 14:53
  reviews
• 14:53
  and
• 14:53
  ratings
• 14:54
  on
• 14:54
  each
• 14:54
  school.
• 14:55
  So
• 14:55
  there's
• 14:55
  some
• 14:55
  great
• 14:56
  websites
• 14:56
  out
• 14:56
  there
• 14:57
  to
• 14:57
  research
• 14:57
  this
• 14:58
  stuff.
• 14:58
  Yep.
• 14:58
  So
• 14:59
  then
• 14:59
  we
• 14:59
  have
• 14:59
  housing
• 15:00
  policies.
• 15:00
  And
• 15:01
  to
• 15:01
  me,
• 15:01
  this
• 15:01
  is
• 15:02
  actually
• 15:02
  the
• 15:02
  single
• 15:03
  most
• 15:03
  important
• 15:03
  thing
• 15:03
  that
• 15:03
  I
• 15:04
  look
• 15:04
  at
• 15:04
  whenever
• 15:04
  I
• 15:04
  decide
• 15:05
  if
• 15:05
  I
• 15:05
  want
• 15:05
  to
• 15:05
  invest
• 15:05
  in
• 15:05
  an
• 15:06
  area
• 15:06
  or
• 15:06
  not.
• 15:06
  How
• 15:07
  friendly
• 15:07
  or
• 15:08
  unfriendly
• 15:09
  a
• 15:09
  tenant
• 15:09
  landlord
• 15:10
  was,
• 15:10
  that's
• 15:10
  a
• 15:10
  big
• 15:11
  thing
• 15:11
  and
• 15:12
  it's
• 15:12
  something
• 15:12
  that's
• 15:12
  going
• 15:12
  to
• 15:13
  have
• 15:13
  a
• 15:13
  large
• 15:13
  impact
• 15:14
  on
• 15:14
  how
• 15:14
  easy
• 15:15
  it
• 15:15
  is
• 15:15
  for
• 15:15
  you
• 15:15
  to
• 15:15
  manage
• 15:15
  your
• 15:16
  property.
• 15:16
  So
• 15:17
  I'm
• 15:17
  originally
• 15:17
  from
• 15:17
  New
• 15:17
  York.
• 15:18
  I
• 15:18
  would
• 15:18
  never
• 15:18
  invest
• 15:19
  in
• 15:19
  anything
• 15:19
  residential
• 15:20
  or
• 15:20
  multifamily
• 15:21
  in
• 15:21
  New
• 15:21
  York
• 15:21
  because
• 15:22
  managing
• 15:22
  there
• 15:22
  is
• 15:22
  an
• 15:23
  absolute
• 15:23
  disaster.
• 15:23
  If
• 15:23
  you
• 15:24
  go
• 15:24
  upstate
• 15:24
  New
• 15:24
  York,
• 15:24
  it
• 15:24
  may
• 15:25
  not
• 15:25
  be
• 15:25
  so
• 15:25
  bad.
• 15:25
  It's
• 15:25
  a
• 15:25
  lot
• 15:26
  more,
• 15:26
  a
• 15:26
  lot
• 15:26
  more
• 15:27
  landlord
• 15:27
  friendly.
• 15:28
  But
• 15:28
  within
• 15:28
  the
• 15:28
  city
• 15:29
  it's
• 15:29
  tough.
• 15:29
  You
• 15:29
  know,
• 15:29
  I
• 15:29
  have
• 15:30
  a
• 15:30
  lot
• 15:30
  of
• 15:30
  friends
• 15:30
  who
• 15:30
  have
• 15:30
  own
• 15:31
  properties
• 15:31
  here
• 15:31
  and
• 15:31
  they
• 15:31
  hear
• 15:32
  absolute
• 15:32
  horror
• 15:32
  stories
• 15:33
  of,
• 15:33
  you
• 15:33
  know,
• 15:33
  it
• 15:33
  takes
• 15:33
  you
• 15:34
  two
• 15:34
  years
• 15:34
  to
• 15:34
  get
• 15:34
  somebody
• 15:35
  out
• 15:35
  and
• 15:35
  sometimes
• 15:35
  more
• 15:35
  than
• 15:36
  that
• 15:36
  when
• 15:36
  you
• 15:36
  evict
• 15:36
  them.
• 15:37
  So
• 15:37
  why
• 15:37
  is
• 15:37
  that
• 15:38
  important?
• 15:38
  Well,
• 15:39
  every
• 15:39
  month
• 15:39
  that
• 15:39
  somebody's
• 15:40
  sitting
• 15:40
  there
• 15:40
  not
• 15:40
  paying
• 15:40
  your
• 15:41
  rent
• 15:41
  is
• 15:42
  a
• 15:42
  month
• 15:42
  you
• 15:42
  are
• 15:42
  losing
• 15:43
  money.
• 15:43
  So
• 15:44
  it's
• 15:44
  a
• 15:44
  month
• 15:44
  that
• 15:45
  you're
• 15:45
  not
• 15:45
  collecting
• 15:45
  rent.
• 15:46
  It's
• 15:46
  a
• 15:46
  month
• 15:46
  that
• 15:46
  your
• 15:46
  income
• 15:47
  is
• 15:47
  going
• 15:47
  down.
• 15:47
  It's
• 15:47
  a
• 15:47
  month
• 15:48
  that
• 15:48
  you're
• 15:48
  having
• 15:49
  to
• 15:49
  come
• 15:49
  up
• 15:49
  with
• 15:49
  money
• 15:49
  to
• 15:49
  pay
• 15:50
  an
• 15:50
  expense
• 15:50
  or
• 15:50
  to
• 15:50
  pay
• 15:50
  the
• 15:51
  mortgage
• 15:51
  or
• 15:51
  to
• 15:51
  pay
• 15:52
  anything.
• 15:52
  That's
• 15:52
  why
• 15:52
  Texas
• 15:53
  has
• 15:53
  become
• 15:53
  so
• 15:53
  popular
• 15:54
  in
• 15:54
  recent
• 15:54
  years.
• 15:54
  In
• 15:54
  Texas
• 15:55
  you
• 15:55
  can
• 15:55
  get
• 15:55
  people
• 15:55
  out
• 15:56
  in
• 15:56
  about
• 15:56
  a
• 15:56
  month.
• 15:56
  I
• 15:56
  haven't
• 15:57
  personally
• 15:57
  invested
• 15:57
  in
• 15:57
  Texas
• 15:58
  yet,
• 15:58
  but
• 15:58
  it's
• 15:59
  a
• 15:59
  very
• 15:59
  landlord
• 16:00
  friendly
• 16:00
  market.
• 16:01
  There's
• 16:02
  not
• 16:03
  a
• 16:03
  lot
• 16:03
  of
• 16:03
  options
• 16:04
  for
• 16:04
  tenants
• 16:05
  who
• 16:05
  aren't
• 16:05
  going
• 16:05
  to
• 16:06
  adhere
• 16:06
  to
• 16:06
  the
• 16:06
  lease.
• 16:07
  And
• 16:07
  that
• 16:07
  Makes
• 16:07
  it
• 16:08
  a
• 16:08
  higher
• 16:08
  probability
• 16:09
  of
• 16:09
  you
• 16:09
  being
• 16:09
  successful
• 16:10
  with
• 16:10
  those
• 16:10
  investments.
• 16:11
  Yeah,
• 16:11
  absolutely.
• 16:12
  And
• 16:13
  I
• 16:13
  also
• 16:13
  think
• 16:14
  tax
• 16:14
  laws,
• 16:15
  knowing
• 16:15
  like
• 16:15
  local,
• 16:16
  regional
• 16:16
  tax
• 16:16
  laws
• 16:17
  and
• 16:17
  all
• 16:17
  of
• 16:17
  those
• 16:17
  things
• 16:17
  I
• 16:18
  have,
• 16:18
  I
• 16:18
  know,
• 16:18
  like
• 16:18
  for
• 16:19
  instance,
• 16:19
  South
• 16:20
  Carolina
• 16:20
  charges
• 16:21
  a
• 16:21
  slightly
• 16:21
  higher
• 16:22
  tax
• 16:22
  for
• 16:22
  investment
• 16:22
  properties.
• 16:23
  So
• 16:24
  knowing
• 16:24
  what
• 16:24
  your
• 16:25
  taxes
• 16:25
  are
• 16:25
  going
• 16:25
  to
• 16:25
  be
• 16:25
  on
• 16:26
  any
• 16:26
  given
• 16:26
  investment
• 16:27
  property
• 16:27
  in
• 16:27
  a
• 16:27
  particular
• 16:28
  area
• 16:28
  is
• 16:28
  really,
• 16:29
  really
• 16:29
  important
• 16:29
  as
• 16:29
  well.
• 16:30
  And
• 16:30
  how
• 16:30
  that
• 16:30
  local
• 16:30
  municipality
• 16:31
  operates.
• 16:32
  And
• 16:32
  I
• 16:32
  guess
• 16:32
  like
• 16:33
  even
• 16:33
  on
• 16:33
  multifamily,
• 16:34
  I
• 16:34
  see
• 16:34
  short
• 16:34
  term
• 16:35
  rental
• 16:35
  done.
• 16:36
  Obviously
• 16:36
  that's
• 16:37
  something
• 16:37
  that
• 16:38
  is
• 16:38
  very
• 16:38
  regulated
• 16:39
  and
• 16:39
  that
• 16:39
  you
• 16:39
  always
• 16:40
  want
• 16:40
  to
• 16:40
  double
• 16:40
  check
• 16:40
  as
• 16:40
  well
• 16:41
  if
• 16:41
  that's
• 16:41
  a
• 16:41
  part
• 16:41
  of
• 16:41
  your
• 16:42
  strategy.
• 16:42
  And
• 16:42
  it
• 16:43
  happens
• 16:43
  life
• 16:43
  cycles.
• 16:44
  So
• 16:45
  in
• 16:45
  some
• 16:45
  of
• 16:46
  our
• 16:46
  previous
• 16:46
  episodes
• 16:46
  we
• 16:47
  talked
• 16:47
  about
• 16:47
  market
• 16:48
  cycles.
• 16:48
  And
• 16:49
  real
• 16:49
  estate
• 16:50
  at
• 16:50
  its
• 16:50
  core
• 16:51
  is
• 16:51
  really
• 16:51
  a
• 16:52
  hyper
• 16:52
  local
• 16:53
  business.
• 16:53
  So
• 16:54
  while
• 16:54
  there
• 16:54
  is
• 16:55
  a
• 16:55
  national
• 16:55
  and
• 16:56
  global
• 16:56
  market,
• 16:57
  it's
• 16:57
  really
• 16:57
  local
• 16:57
  and
• 16:58
  hyperlocal
• 16:58
  in
• 16:58
  some
• 16:59
  markets.
• 16:59
  Literally.
• 17:00
  Areas
• 17:00
  can
• 17:00
  change
• 17:00
  from
• 17:01
  block
• 17:01
  to
• 17:01
  block.
• 17:01
  So
• 17:01
  you
• 17:02
  have
• 17:02
  to
• 17:02
  understand
• 17:02
  where
• 17:02
  you're
• 17:03
  buying
• 17:03
  and
• 17:03
  what
• 17:03
  you're
• 17:03
  getting.
• 17:04
  And
• 17:04
  what
• 17:04
  you
• 17:04
  want
• 17:04
  to
• 17:05
  understand
• 17:05
  when
• 17:05
  you're
• 17:05
  buying
• 17:05
  is
• 17:06
  where
• 17:06
  is
• 17:07
  that
• 17:07
  area
• 17:07
  and
• 17:08
  where
• 17:08
  is
• 17:08
  that
• 17:08
  submarket
• 17:09
  right
• 17:09
  now?
• 17:09
  Is
• 17:09
  it
• 17:10
  a
• 17:10
  market
• 17:10
  that's
• 17:10
  growing?
• 17:10
  Is
• 17:11
  it
• 17:11
  a
• 17:11
  market
• 17:11
  that's
• 17:11
  already
• 17:12
  established?
• 17:13
  Is
• 17:13
  it
• 17:13
  a
• 17:13
  market
• 17:13
  that
• 17:14
  maybe
• 17:14
  is
• 17:14
  declining?
• 17:15
  I'm
• 17:16
  sure
• 17:16
  that
• 17:16
  anybody
• 17:16
  who
• 17:17
  lived
• 17:17
  in
• 17:17
  Detroit
• 17:18
  80,
• 17:19
  90
• 17:19
  years
• 17:19
  ago
• 17:20
  probably
• 17:20
  never
• 17:20
  thought
• 17:21
  that
• 17:21
  the
• 17:21
  population
• 17:21
  would
• 17:22
  be
• 17:22
  a
• 17:22
  third
• 17:22
  of
• 17:23
  what
• 17:23
  it
• 17:23
  was
• 17:23
  then.
• 17:24
  In
• 17:24
  1950,
• 17:25
  Detroit
• 17:25
  had
• 17:25
  a
• 17:25
  population
• 17:26
  of
• 17:26
  nearly
• 17:27
  1.9
• 17:27
  million.
• 17:28
  Now
• 17:28
  it's
• 17:28
  around
• 17:29
  600,000.
• 17:30
  So
• 17:30
  imagine
• 17:30
  if
• 17:30
  you
• 17:31
  buy
• 17:31
  a
• 17:31
  property
• 17:32
  in
• 17:32
  a
• 17:32
  market
• 17:32
  and
• 17:32
  you
• 17:32
  have
• 17:33
  that
• 17:33
  happen,
• 17:33
  what
• 17:34
  happens
• 17:34
  to
• 17:34
  that
• 17:34
  property's
• 17:35
  value
• 17:35
  over
• 17:35
  time?
• 17:35
  Right.
• 17:36
  It's
• 17:36
  very
• 17:37
  interesting.
• 17:37
  And
• 17:38
  I
• 17:38
  guess
• 17:38
  I
• 17:39
  would
• 17:39
  also
• 17:39
  be
• 17:39
  careful
• 17:40
  of
• 17:40
  overestimating
• 17:41
  appreciation,
• 17:42
  for
• 17:42
  sure.
• 17:42
  Especially
• 17:43
  if
• 17:43
  you're
• 17:43
  estimating
• 17:44
  that
• 17:44
  appreciation
• 17:45
  off
• 17:45
  of
• 17:45
  like
• 17:46
  development
• 17:46
  projects
• 17:47
  that
• 17:47
  are
• 17:47
  going
• 17:47
  on.
• 17:48
  Because
• 17:48
  I've
• 17:48
  seen
• 17:48
  a
• 17:48
  lot
• 17:49
  of
• 17:49
  development
• 17:49
  projects
• 17:50
  not
• 17:50
  work
• 17:50
  out.
• 17:51
  And
• 17:51
  I've
• 17:51
  seen
• 17:52
  people
• 17:52
  attempt
• 17:53
  to
• 17:53
  get
• 17:53
  ahead
• 17:53
  in
• 17:53
  development
• 17:54
  projects
• 17:54
  and
• 17:54
  purchase
• 17:55
  real
• 17:55
  estate
• 17:55
  strategically
• 17:56
  thinking
• 17:56
  it
• 17:57
  would
• 17:57
  appreciate.
• 17:58
  And
• 17:58
  so
• 17:58
  you
• 17:58
  also
• 17:59
  want
• 17:59
  to
• 17:59
  be
• 17:59
  careful
• 17:59
  not
• 17:59
  to
• 18:00
  overestimate
• 18:00
  appreciation
• 18:01
  and
• 18:01
  growth.
• 18:02
  Purchasing
• 18:02
  for
• 18:02
  today's
• 18:03
  value
• 18:03
  for
• 18:03
  today,
• 18:04
  for
• 18:04
  sure.
• 18:05
  Yes.
• 18:05
  Sound
• 18:05
  advice.
• 18:06
  So
• 18:06
  as
• 18:06
  you're
• 18:06
  going
• 18:07
  through
• 18:07
  areas,
• 18:07
  another
• 18:07
  thing
• 18:08
  you
• 18:08
  can
• 18:08
  do
• 18:08
  is
• 18:08
  just
• 18:08
  use
• 18:08
  your
• 18:09
  eyes.
• 18:09
  You
• 18:09
  can
• 18:09
  eyeball
• 18:10
  things.
• 18:10
  What
• 18:10
  do
• 18:10
  you
• 18:11
  see
• 18:11
  in
• 18:11
  the
• 18:11
  areas?
• 18:11
  Do
• 18:12
  you
• 18:12
  see
• 18:12
  a
• 18:13
  lot
• 18:13
  of
• 18:13
  properties
• 18:13
  in
• 18:14
  disrepair?
• 18:14
  Do
• 18:15
  you
• 18:15
  see
• 18:15
  properties
• 18:16
  that
• 18:16
  are
• 18:16
  well
• 18:16
  maintained?
• 18:17
  Usually
• 18:18
  those
• 18:18
  are
• 18:18
  indicative
• 18:19
  of
• 18:19
  the
• 18:19
  area.
• 18:20
  You
• 18:20
  know,
• 18:20
  if
• 18:20
  you
• 18:20
  see
• 18:20
  a
• 18:20
  lot
• 18:20
  of
• 18:21
  properties
• 18:21
  in
• 18:21
  disrepair,
• 18:22
  if
• 18:22
  you
• 18:22
  see
• 18:23
  that
• 18:23
  the
• 18:23
  grass
• 18:23
  isn't
• 18:24
  cut,
• 18:24
  if
• 18:24
  you
• 18:24
  see
• 18:24
  the,
• 18:25
  the
• 18:25
  concrete
• 18:26
  is
• 18:26
  cracked
• 18:27
  and
• 18:27
  none
• 18:27
  of
• 18:27
  these
• 18:27
  Things
• 18:27
  are
• 18:28
  being
• 18:28
  repaired.
• 18:29
  It
• 18:29
  probably
• 18:29
  tells
• 18:29
  you
• 18:30
  a
• 18:30
  good
• 18:30
  amount
• 18:31
  of
• 18:31
  what
• 18:31
  you
• 18:31
  need
• 18:31
  to
• 18:31
  know
• 18:32
  about
• 18:32
  that
• 18:32
  area.
• 18:32
  Now,
• 18:33
  if
• 18:33
  you
• 18:33
  walk
• 18:33
  through
• 18:33
  another
• 18:34
  area
• 18:34
  and
• 18:34
  you
• 18:34
  see
• 18:34
  that
• 18:34
  the
• 18:35
  streets
• 18:35
  are
• 18:35
  immaculate,
• 18:36
  the
• 18:36
  grass
• 18:37
  is
• 18:37
  cut,
• 18:37
  everything
• 18:38
  looks
• 18:38
  good
• 18:38
  in
• 18:38
  the
• 18:38
  buildings,
• 18:39
  that
• 18:39
  tells
• 18:39
  you
• 18:40
  where
• 18:40
  you're
• 18:40
  buying.
• 18:40
  So
• 18:40
  keep
• 18:40
  that
• 18:41
  in
• 18:41
  mind.
• 18:41
  And
• 18:42
  depending
• 18:42
  on
• 18:42
  what
• 18:42
  your
• 18:42
  model
• 18:43
  is,
• 18:43
  either
• 18:43
  one
• 18:44
  can
• 18:44
  work.
• 18:44
  But
• 18:44
  it's
• 18:44
  important
• 18:45
  to
• 18:45
  know
• 18:45
  what
• 18:45
  you're
• 18:45
  buying,
• 18:46
  and
• 18:46
  it's
• 18:46
  important
• 18:46
  to
• 18:47
  price
• 18:47
  it
• 18:47
  accordingly.
• 18:48
  There
• 18:48
  are
• 18:48
  some
• 18:48
  people
• 18:48
  who
• 18:48
  like
• 18:49
  buying
• 18:49
  in
• 18:49
  those
• 18:49
  rougher
• 18:49
  areas,
• 18:50
  and
• 18:50
  I.
• 18:50
  And
• 18:51
  there's
• 18:51
  people
• 18:51
  that
• 18:51
  do
• 18:51
  very
• 18:52
  well
• 18:52
  in
• 18:52
  those
• 18:52
  properties,
• 18:53
  but
• 18:53
  it's
• 18:54
  not
• 18:54
  for
• 18:54
  everybody.
• 18:54
  So
• 18:55
  you
• 18:55
  have
• 18:55
  to
• 18:55
  understand
• 18:56
  what
• 18:56
  your
• 18:56
  model
• 18:56
  is
• 18:57
  and
• 18:57
  what's
• 18:57
  going
• 18:57
  to
• 18:57
  work
• 18:57
  for
• 18:57
  you.
• 18:58
  Yep.
• 18:58
  And
• 18:59
  I
• 18:59
  will
• 18:59
  say,
• 18:59
  I
• 19:00
  think
• 19:00
  being
• 19:00
  involved
• 19:01
  with
• 19:01
  local
• 19:02
  government
• 19:02
  is
• 19:02
  always
• 19:03
  really
• 19:03
  important
• 19:04
  because
• 19:04
  that's
• 19:04
  helped
• 19:05
  me
• 19:05
  also
• 19:05
  know
• 19:06
  what
• 19:06
  are
• 19:06
  my
• 19:06
  districts
• 19:07
  in
• 19:07
  my
• 19:07
  area
• 19:08
  and
• 19:08
  which
• 19:08
  district
• 19:09
  is
• 19:09
  struggling
• 19:10
  to
• 19:10
  get
• 19:11
  the
• 19:11
  attention
• 19:12
  that
• 19:12
  they
• 19:12
  feel
• 19:12
  that
• 19:12
  that
• 19:13
  district
• 19:13
  needs
• 19:14
  and
• 19:14
  which
• 19:14
  ones
• 19:14
  are
• 19:15
  getting.
• 19:15
  You
• 19:15
  know,
• 19:16
  all
• 19:16
  of
• 19:16
  the
• 19:16
  development
• 19:16
  projects
• 19:17
  are
• 19:17
  happening
• 19:18
  and
• 19:18
  it's
• 19:18
  hustling
• 19:18
  and
• 19:18
  bustling.
• 19:19
  So
• 19:19
  I
• 19:19
  think
• 19:19
  also
• 19:20
  being
• 19:20
  in
• 19:20
  tune
• 19:21
  with
• 19:21
  your
• 19:21
  local
• 19:21
  government,
• 19:22
  knowing
• 19:22
  where
• 19:22
  they're
• 19:23
  putting
• 19:23
  the
• 19:23
  money
• 19:23
  and
• 19:24
  where
• 19:24
  they're
• 19:24
  not
• 19:24
  putting
• 19:24
  the
• 19:25
  money
• 19:25
  and
• 19:25
  knowing
• 19:25
  your
• 19:25
  different
• 19:26
  districts,
• 19:26
  I
• 19:26
  think
• 19:26
  that's
• 19:26
  been
• 19:27
  very
• 19:27
  valuable
• 19:27
  for
• 19:27
  me
• 19:28
  on
• 19:28
  that
• 19:28
  as
• 19:28
  well.
• 19:29
  Keep
• 19:30
  in
• 19:30
  mind,
• 19:30
  I
• 19:31
  mean,
• 19:31
  that's
• 19:31
  definitely
• 19:31
  great
• 19:32
  insight.
• 19:32
  The
• 19:32
  government
• 19:33
  tells
• 19:33
  you
• 19:34
  where
• 19:34
  they
• 19:34
  want
• 19:34
  you
• 19:34
  to
• 19:35
  invest,
• 19:35
  so
• 19:35
  keep
• 19:35
  that
• 19:35
  in
• 19:36
  mind.
• 19:36
  You
• 19:36
  know,
• 19:37
  with
• 19:37
  anything
• 19:37
  in
• 19:37
  life,
• 19:37
  you
• 19:38
  got
• 19:38
  to
• 19:38
  follow
• 19:38
  the
• 19:38
  money.
• 19:39
  And
• 19:39
  taxpayers
• 19:39
  have
• 19:40
  a
• 19:40
  lot
• 19:40
  of
• 19:40
  money.
• 19:40
  They
• 19:40
  may
• 19:41
  not
• 19:41
  realize
• 19:41
  it,
• 19:41
  but
• 19:42
  they
• 19:42
  have
• 19:42
  a
• 19:42
  lot
• 19:42
  of
• 19:42
  money
• 19:42
  at
• 19:42
  stake
• 19:43
  in
• 19:43
  these
• 19:43
  communities.
• 19:44
  So
• 19:44
  when
• 19:45
  the
• 19:45
  government's
• 19:45
  starting
• 19:46
  to
• 19:46
  spend
• 19:47
  and
• 19:47
  to
• 19:47
  encourage
• 19:48
  people
• 19:48
  spending,
• 19:49
  if
• 19:49
  you
• 19:49
  can
• 19:49
  work
• 19:50
  against
• 19:50
  them
• 19:50
  or
• 19:50
  you
• 19:50
  can
• 19:50
  work
• 19:51
  with
• 19:51
  them,
• 19:51
  smart
• 19:52
  money's
• 19:52
  not
• 19:52
  working
• 19:52
  with
• 19:53
  them.
• 19:53
  So
• 19:53
  keep
• 19:53
  that
• 19:53
  in
• 19:53
  mind.
• 19:54
  Yeah,
• 19:54
  absolutely.
• 19:55
  And
• 19:56
  how
• 19:56
  about
• 19:56
  some
• 19:56
  tools
• 19:56
  and
• 19:57
  resources?
• 19:57
  So
• 19:58
  for
• 19:58
  rental
• 19:58
  price
• 19:59
  tracking,
• 19:59
  you
• 19:59
  know,
• 19:59
  sites
• 20:00
  like
• 20:00
  Zillow
• 20:00
  and
• 20:00
  Rentometer
• 20:01
  can
• 20:01
  definitely
• 20:01
  be
• 20:02
  great
• 20:02
  starting
• 20:02
  points.
• 20:02
  You
• 20:03
  know,
• 20:03
  I
• 20:03
  would
• 20:03
  never
• 20:03
  use
• 20:04
  any
• 20:04
  site
• 20:04
  or
• 20:04
  any
• 20:04
  single
• 20:05
  data
• 20:05
  source
• 20:06
  as
• 20:06
  an
• 20:06
  end
• 20:06
  all
• 20:06
  be
• 20:07
  all.
• 20:07
  But
• 20:07
  you
• 20:08
  can
• 20:08
  use
• 20:08
  them
• 20:08
  for
• 20:08
  reference
• 20:09
  and
• 20:09
  they
• 20:09
  can
• 20:09
  help
• 20:09
  you
• 20:10
  further
• 20:10
  research
• 20:11
  and
• 20:11
  study
• 20:11
  an
• 20:12
  area.
• 20:12
  Yep,
• 20:12
  absolutely.
• 20:13
  And
• 20:14
  then
• 20:14
  like
• 20:14
  I
• 20:14
  said,
• 20:14
  you
• 20:15
  can
• 20:15
  always
• 20:15
  get
• 20:16
  rental
• 20:16
  rates.
• 20:17
  An
• 20:17
  agent
• 20:17
  can
• 20:17
  always
• 20:17
  pull
• 20:18
  it
• 20:18
  from
• 20:18
  your
• 20:18
  local
• 20:18
  mls,
• 20:19
  which
• 20:19
  is
• 20:19
  helpful.
• 20:19
  DNA
• 20:20
  is
• 20:20
  a
• 20:20
  site
• 20:21
  that
• 20:21
  a
• 20:21
  lot
• 20:21
  of
• 20:21
  my
• 20:21
  investors
• 20:22
  will
• 20:22
  use
• 20:22
  as
• 20:22
  well.
• 20:23
  Apartments.com
• 20:24
  you
• 20:24
  can
• 20:24
  get
• 20:24
  an
• 20:24
  idea
• 20:25
  of
• 20:25
  what
• 20:25
  things
• 20:25
  are
• 20:26
  renting
• 20:26
  for
• 20:26
  actively,
• 20:27
  and
• 20:27
  some
• 20:27
  of
• 20:27
  those
• 20:27
  are
• 20:28
  not
• 20:28
  in
• 20:28
  mls.
• 20:29
  And
• 20:29
  then
• 20:29
  having
• 20:30
  a
• 20:30
  really
• 20:30
  great
• 20:30
  property
• 20:30
  manager
• 20:31
  that
• 20:31
  you
• 20:31
  can
• 20:31
  run
• 20:32
  things
• 20:32
  by
• 20:32
  because
• 20:32
  they're
• 20:33
  going
• 20:33
  to
• 20:33
  tell
• 20:33
  you
• 20:33
  things
• 20:33
  like,
• 20:34
  no,
• 20:34
  that
• 20:35
  unit
• 20:35
  will
• 20:35
  actually
• 20:36
  or
• 20:36
  those
• 20:36
  units
• 20:36
  will
• 20:37
  actually
• 20:37
  rent
• 20:37
  for
• 20:37
  $50
• 20:38
  less
• 20:38
  adore.
• 20:39
  And
• 20:39
  this
• 20:39
  is
• 20:39
  why,
• 20:40
  you
• 20:40
  know,
• 20:40
  and
• 20:40
  those
• 20:40
  are
• 20:41
  factors
• 20:41
  that,
• 20:41
  that
• 20:42
  they
• 20:42
  are
• 20:42
  the
• 20:42
  best
• 20:42
  ones
• 20:43
  to
• 20:43
  get
• 20:43
  that
• 20:43
  advice
• 20:43
  from.
• 20:44
  Awesome.
• 20:44
  Well,
• 20:44
  you
• 20:45
  know,
• 20:45
  I
• 20:45
  hope
• 20:45
  that
• 20:45
  we
• 20:45
  gave
• 20:45
  you
• 20:46
  guys
• 20:46
  enough
• 20:46
  to
• 20:46
  get
• 20:47
  Saudi
• 20:47
  as
• 20:47
  you
• 20:47
  find
• 20:47
  the
• 20:48
  location
• 20:48
  here.
• 20:48
  And
• 20:48
  we're
• 20:49
  going
• 20:49
  to
• 20:49
  wrap
• 20:49
  this
• 20:49
  one
• 20:49
  up.
• 20:50
  If
• 20:50
  you
• 20:50
  do
• 20:50
  want
• 20:50
  our
• 20:50
  commercial
• 20:51
  real
• 20:51
  estate
• 20:51
  success
• 20:52
  guide,
• 20:52
  you
• 20:52
  can
• 20:52
  text
• 20:52
  the
• 20:53
  word
• 20:53
  FREEDOM
• 20:53
  to
• 20:54
  33777.
• 20:56
  And
• 20:56
  that's
• 20:56
  all
• 20:57
  for
• 20:57
  this
• 20:57
  one,
• 20:57
  folks.
• 20:58
  Thanks,
• 20:58
  guys.