When you choose a new market to invest in, what criteria do you look for before pulling the trigger?
After all, not all markets are the same and, of course, they depend on which strategy you’re using.
I actually get asked this question a lot: How do we choose the cities we invest in?
Hey, Moguls, Chris Clothier here and today, I want to explain why my company is investing in the cities we’re in, so you can better select markets for your own business.
We’re investing in:
But why?
Read on to learn what we found that made them good markets to invest in...
Something seems familiar
What’s unique about these 3 markets for us as investors… is that we know them.
It’s actually the reason why we chose to invest in them in the first place. We knew the markets really well. We’ve spent a lot of time in these markets.
I was born and raised in Dallas, Texas. That’s something most people don’t know about me. And I’ve got family and friends there. I mean, I spent the first early half of my life in Dallas.
So my team and I are very familiar with Dallas and Houston for that matter.
Then back in the mid-80s, my family moved to Memphis, Tennessee, where my grandfather was an entrepreneur. So that makes me a third generation entrepreneur in the Home of the Blues. ;)
See, I understand the Memphis market and I know what’s going on – what makes it tick and what makes it move.
So the main reason why we initially chose these 3 cities is because of our familiarity with the areas.
Having said that…
Even if we knew the markets better than anything else… if they didn’t have the right dynamics and economic grounds – we wouldn’t have invested there.
Which leads me to our second main reason…
“Our workforce and our entire economy are strongest when we embrace
diversity to its fullest, and that means opening doors of opportunity to everyone
and recognizing that the American Dream excludes no one.”
~Thomas Perez
It’s the economy
All 3 of the markets we invest in are solid financial economic markets.
What do I mean by that?
I’m talking about fundamental markets that don’t take huge mood swings through the real estate investment market. They’re not going to go up and down in price a ton.
These markets are all economically stable.
That’s another huge reason why we like them for our investing.
“Learning to collaborate is part of equipping yourself for effectiveness, problem solving, innovation and life-long learning in an ever-changing networked economy.”
~Don Tapscott
Bottom line
The main reason we’re in these markets is because we understand them and know them very, very well.
And because we know them so well, we know they’ll be excellent long-term investment markets.
We’ve built amazing companies in these 3 markets – over $100M in sales a year – in those markets because they make sense.
We know them and they’re economically sound.
Now…
Go out and find those types of markets for your own investing business.
How do you choose?
Tell us why you chose to invest in certain markets, in the comments section below.
Choose markets to invest in that you are familiar with.
Select markets to invest in that are financially stable.
Make sure that one of the criteria for selecting your market should be that it can be long-term investment area.
Chris Clothier
owns and operates three multi-million dollar a year marketing brands including 1-800-SELL-NOW, Find Cash Buyers NOW and Find Private Lenders NOW; each brand, under the REI Marketing umbrella, is designed to help real estate investors and agents reach a specific marketing niche.