Real estate is a multifaceted industry, and there are a lot of factors to consider when deciding where to invest. Every market is different and has its unique advantages and drawbacks. But everyone can agree that the real estate market is constantly changing, and you need to stay ahead of the curve.

With the real estate market looking more promising daily, knowing where to invest is essential.

Mauricio Rauld, a real estate syndication expert and a highly experienced lawyer, shares the following takeaways from Robert Helms‘ discussion on how to identify the best real estate markets to invest in:

1. Real estate derives its value from “proximity to people.”

You know where land is very cheap? In rural Arkansas. It was cheap 20 years ago, its cheap today and will probably be cheap in 20 years from now.

As investors in real estate investors, we don’t want cheap real estate. We want real estate where there is demand for it. 

We, therefore, want lots of reasons (i.e. stories) for people to move, stay, and work in a marketplace.

The big puzzle to solve is figuring it out which are  markets  where are moving into and which are the markets where people are moving out. Where exactly are these people moving? 

This is what we call “Net Migration”.

2. A good place tp start is to narrow down your markets since you only want to be looking at and comparing 2-6 markets.

There are several “short lists” you can pull and review, and once you lay them over each other, you will start to see patterns emerge. A few lists would include:

These shortlists include:

a) fastest growing states in the country

b) renter-friendly vs.  landlord-friendly states

c) top 10 cities for job growth

d) top 10 markets ranked for the quality of life

e) top 10 markets for affordability

3. You always want to compare a market with another market. 

If you are just looking at one market, you don’t really know whether it’s any good. However, you can only know about 6 or so markets well enough to make a great investment decision. So, waste your time looking at 18 different markets.

4. Once you have a short list, it’s time to drill down. 

Start with a great “free” resource: BLS.gov. This Bureau of Labor Statistics will show you the several “stories” that you need to look for.

5. Every market has a “story” or “stories,” and your job is to find those. The more stories a market has, the better.

For example, Dallas, Texas (where Robert lives) has tremendous medical infrastructure, that’s a story. Incredibly large and diversified universities, that’s another story. Dallas has one of the largest airports in the country, multiple sports teams (football, basketball, baseball, hockey, etc.)

Each is a story that gives the market some color.

If the market only has one story, if that story goes away, you are in trouble. You want lots of different reasons why people would want to live there, work there, vacation there, etc. 

6. Once you find a few markets, eventually, you need to drill down and start kicking some tires. 

Reach out to the local apartment associations, local chamber of commerce, property managers, etc. to find the hot zip codes and streets, etc. After all, markets are incredibly local. Block by block. 

Here’s the full video of Robert Helm’s discussion, or you can visit and subscribe to Mauricio Rauld’s Youtube Channel.

On September 16th and 17th, Mauricio Rauld will be a featured presenter at Robert’s Secrets of Successful Syndication. If you would like to join, click HERE to register!

If you’re looking for a way to improve yourself, leadership style, and  financial wellbeing, follow Wellthy Capital‘s podcast The Path to Wellth by Hannes Hennche on Apple, Stitcher, and Spotify. It’s a great way to learn from the success stories of successful professionals and passive investors.