Top 11 Real Estate Investment Markets - Half of the Markets are in TEXAS!

By Inman News, Wednesday, June 29, 2011.

Here's some great data for all you investors out there from the premier real estate news agaency in the country, Inman News.

Inman selected the Top 11 investor markets in the country. Methodology:

The criteria of (our) analysis and conclusions are based on four key indicators. Three are macro and one is real estate-specific.

The macro indicators are:

1. Unemployment rate;

2. Population growth; and,

3. Economic trend index (this index ranks U.S. metropolitan areas by how well they are creating and sustaining jobs and economic growth. The components include job, wage and salary, and technology growth).

The real estate indicator is:

4. Foreclosure level.

The reason for choosing these four factors to drive (our) criteria is that for an investor who wants to invest in a market right now, (AptPrep wants) to identify markets -- aka cities -- where, on one hand, demand for real estate is expected to increase in the near future (increase in population growth, increase in employment, and high economic trends index will positively affect such demand); while, on the other hand, current supply in these same markets is still sufficiently healthy to be able to find a bargain for a little while longer (low-to-moderate level of foreclosure would allow this).

Sources include RealtyTrac, the Bureau of Labor Statistics, the U.S. Census Bureau via an online population chart, and the 2010 Milken Institute Best-Performing Cities Index.

Best U.S. Markets to Currently Invest In Rank City State

1 Raleigh-Cary N.C. 2 Durham N.C. 3 Oklahoma City Okla. 4 Austin Texas 5 Nashville Tenn. 6 Houston Texas 7 San Antonio Texas 8 Fort Worth Texas 9 Laredo Texas 10 Seattle Wash. 11 Portland Ore.

Source: AptPrep.

While things in the real estate market are not all peaches and cream there are 10 markets with hot home sales and buyers who know they are getting a great deal. Don't miss these "Opportunity Cities". Here are the Top 10 Hottest Markets for March, according to the National Association of Realtors.

#10 Fresno, CA

Median days on the market: 71 Median list price: $170,000

California makes a strong showing on the list, with Fresno coming in at #10. And with a median list price of $170,000, Fresno offers a vast array of affordable properties for first-time homebuyers.

#9 Anchorage, AK

Median days on the market: 71 Median list price: $279,975

Hot sales, cold weather -- an unlikely pairing in this chilly burg, but a fact not lost on savvy buyers. With a median sales price under $300,000 and typical sales taking under two and a half months, house hunters would do well to browse this city's goods.

#8 San Jose, CA

Median days on the market: 71 Median list price: $470,000

Known as the capital of Silicon Valley, this high-tech hub is pricier than other markets on the list, but attract buyers in droves nonetheless.

#7 Bakersfield, CA

Median days on the market: 70 Median list price: $141,500

Bakersfield is another California metro that has both low median home prices and typically short-lived listings.

#6 Stockton-Lodi, CA

Median days on the market: 70 Median list price: $175,000

As an alternative to the pricey suburbs of San Francisco (which also makes an appearance on the list), many commuters are escaping to the more reasonably-priced city of Lodi.

#5 Los Angeles-Long Beach, CA

Median days on the market: 70 Median list price: $345,000

California's most populous city is also one of its most in-demand housing markets. A median priced home in the City of Angels will set you back $345,000.

#4 Iowa City, IA

Median days on the market: 66 Median list price: $187,500

Iowa may not be known for its hot real estate market -- which is perhaps why the Hawkeye State avoided the worst of the housing crisis. With typical listing prices under $200,000 and fast listing turn around, Iowa City beat out several other well known metros in terms of fast sales.

#3 Denver, CO

Median days on the market: 66 Median list price: $259,900

As homebuyers travel farther away from the coast, they'll be surprised to find just how much home they can afford.

#2 San Francisco, CA

Median days on the market: 63 Median list price: $639,000

Scenic San Francisco comes in second as the fastest housing market in March. Like San Fran's hilly topography, the local market has experienced its fair share of ups and downs. Nevertheless, the City By the Bay remains one of the most desirable places to live.

#1 Oakland, CA

Median days on the market: 50 Median list price: $319,000

With a median of 50 days on the market, Oakland, Calif. takes top honors in March as the fastest-selling city in the nation.

Yours in prosperity and freindship, Bill Barnett

Thanks for Listening to Bill Barnett NOW! – The New Order of Wealth

BE SURE TO SEE YOUR EXTRA BONUS AT THE END OF YOUR Ten Commandments

According to the Founding Fathers of our great nation, the laws for basic human behavior and civil conduct were based directly upon the Bible's Ten Commandments.

As real estate investors, I believe we also have laws for basic success behavior and civil profitability. With that in mind, here are my

Ten Commandments for Successful Real Estate Investing In 2011 and Beyond!

1. Make Offers! I must make at least 3 WRITTEN Offers per week. It has been my experience in helping thousands of investors and students over the years with their businesses that Offers are usually the number 1 reason for a business not to be exploding in profits. If you are not making Offers, you are not making money. I know that sounds simplistic, however it is a real gem of advice. Remember, it MUST be a written, contractual offer - verbal offers are just conversation.

2. Secure Funding! I must talk to at least 3 Funding sources per week. These money sources will come from my "5 P's of OPM" and they are: 1. Personal Money, 2. Partnership Money, 3. Professional Money, 4. Private Money and Private Bank Money. If you're making at least 3 offers per week you are going to start filling your deal pipeline and you are going to need funding ready to close your deals. Until you know you can pick the phone up and contact enough Money that you could buy 3 houses this week ALL CA$H, you will need to keep collecting funding sources.

3. Detail Oriented! I must be detail oriented when it comes to the Contracts, Agreements and Paperwork. In real estate, IF IT ISN'T IN THE CONTRACT, IT DOESN'T EXIST! It's the same as our offers, if it isn't in writing its just conversation. More bad deals have been done because the investor thought one thing and the seller or buyer thought something else. Make sure you put everything in the contract. Overkill in this area is very good. Follow your "DUMB Enough Deal Checklist" to make sure you have covered your Assets. More on the “DUMB Enough Deal Checklist” in upcoming issues of the Bill Barnett NOW! Monthly Real Estate Program for those of you who aren’t already using it.

4. Market, Market, Market! I will continue to MARKET for incoming deals even when I feel I have too many deals. This is the second most common mistake I see investors make, both new and seasoned. We start to get a bunch of deals coming our way and we feel overwhelmed or afraid so we stop marketing. NO, NO, NO! This is when we simply adjust up the amount of profit we are willing to work for and we start using our buyers list to wholesale the deals we can't handle or are not interested in, BUT YOU NEVER STOP MARKETING!

5. The Human Touch! I will keep the "Human Touch" in my business by having a human being answer my phone. In this day of incredible technology, it is easy for us to give into the ease and convenience of gadgets, BUT IT IS SO COSTLY! No, I'm not talking about the cost of the gadget; I'm talking about the cost of missed deals. If you are using voice mail or even an antique answering machine to take calls, you ARE losing money. Hang-ups in our business are just too expensive to have. A missed phone call early in my business cost me $60,000 of profit! It still hurts to think about that one. One option is to use an answering service so you can have a human being answer your phone when you're not available. Answering services in today's economy are cheap, missed deals are not.

6. Know The Numbers! I will know the component numbers of my deal inside out. In the world of real estate investing there are a lot of "OOPS" waiting with our names on them. If you do not know exactly what something is going to cost, please don't guess, find a professional in that area and get a solid number. A repair that you did not see because you were trying to save a couple of hundred dollars by not having the property professionally inspected, is now going to cost several thousand to repair, OOPS! Of course this applies to every area of your deal, not just the repairs. Know the numbers to eliminate the OOPS!

7. Know The Exits! I will have my "Exit Strategy" in place before I ever do a deal. I fly close to 100,000 miles a year and have heard the flight attendant's say "Please locate the 2 exits nearest you" probably 1,000 times. On one flight it dawned on me what a valuable lesson this is for investors. Before you ever take off (do a deal) know your exit strategy. Many investors jump on a deal without thinking it all the way through to the sale of the property. If you do not clearly know the exit (how you are going to get paid) stay away from the deal.

8. Don't Spend It All! We have all heard the need to save for a rainy day, well guess what, it's ALWAYS raining somewhere! And sooner or later it’s going to be raining on you. Many new investors, seasoned investors and yes, even myself, have been or are guilty of spending all of the profit from a deal. Please follow this simple cash flow formula for wealth; Tithe 10%, Pay yourself 10% and Keep 20% in the business. You tithe 10% because you must give back in life. You pay yourself 10%, because if you don't...no one else will. Always keep 20% of each dollar of profit in the business because no real estate business can operate totally without some CA$H.

9. Be Sure to Insure to Assure and Ensure! I will assure a good nights sleep and I will ensure my wealth because I will INSURE my business. In our lawsuit happy country, it would be financially unwise to run any business without General Business Liability Insurance. For about $100 per month (prices may vary), many commercial carriers will provide a million dollars worth of general liability insurance. This is the same thought process as automobile or health insurance, you hope you never have to use it and yes, it IS better to have it and not need it than to need it and not have it.

10. INC. It Before You Ink It! I will incorporate ("C" Corp., LLC, Limited Partnership or any other appropriate entity structure) my business so that I have some protection from frivolous lawsuits. I will not risk my or my family’s financial well being by not having an entity structure in place. I will seek competent counsel in regards to this matter and I will NOW get it DONE!

 

EXTRA “Thank You” Bonus… Click the link below to receive a 30 DAY FREE Trial to one of the best business tools I have ever used…

www.DUMBEnoughPBNext.com

 

The "Ten Commandments of Successful Real Estate Investing In 2011 and Beyond", Copyright © 2011 by Bill Barnett NOW! Bill is the host of the nationally syndicated radio show Bill Barnett NOW!, The New Order of Wealth, http://www.BillBarnettNOW.comBill’s also the Best Selling Author of “Are You DUMB Enough To Be RICH?”. As a consultant, mentor and real estate coach Bill was voted TOP FIELD TRAINER from an investor base of over 16,000 real estate investors.

Real Estate Outlook: Good News Across the Nation from our freinds at Realty Times and Carla Hill The market is changing out there, and the latest reports are showing that when it comes to buyers, less is more in some cases.

A recent study from the National Association of Home Builders (NAHB) indicates that the recent housing slump has meant buyers are looking for smaller houses. The McMansions of the boom era are quickly losing their style.

The NAHB reports that the builders they "surveyed expect homes to average 2,152 square feet in 2015, 10 percent smaller than the average size of single-family homes started in the first three quarters of 2010. To save on square footage, the living room is high on the endangered list – 52 percent of builders expect it to be merged with other spaces in the home by 2015 and 30 percent said it will vanish entirely."

Also a heavy influence on the housing front are green and eco-friendly features. The NAHB reports that "in addition to floor plan changes, 68 percent of builders surveyed say that homes in 2015 will also include more green features and technology, including low-E windows; engineered wood beams, joists or tresses; water-efficient features such as dual-flush toilets or low-flow faucets; and an Energy Star rating for the whole house."

This is great news for eco-activists across the nation. The other great news this week? The Mortgage Bankers Association (MBA) reports that mortgage applications are at the highest level in months. They rose by 17.2 percent, that being the biggest increase since June 11th.

Michael Fratantoni, MBA's vice president of research and economics, reports, "An improving job market is beginning to pave the way for an improving housing market. Additionally, mortgage interest rates remained below 5 percent for a second week, maintaining affordability for buyers and leading to an increase in refinance applications."

The U.S. Department of Housing and Urban Development (HUD) had their own good news. Their latest February edition of the Obama Administration's Housing Scorecard revealed that existing home sales are on the rise thanks in part to high home affordability levels.

And since April of 2009, record low mortgage rates have helped more than 9.5 million homeowners to refinance, resulting in $18.1 billion in total borrower savings.

They did report, however, that the "housing market remains fragile as data through January paint a mixed picture of recovery. Existing home sales ticked upward in January, but remained below levels seen in the first half of 2010. Mortgage delinquencies continued a downward trend compared to early 2010 and foreclosure starts and completions remain below peak."

Published: March 14, 2011

Take a Tip From The Rich and Look at Who's Buying NOW!

By Les Christie, staff writer March 7, 2011: 5:20 AM ET….Edited by Bill Barnett

NEW YORK (CNNMoney) -- The rich are different from you and me: They're buying real estate.

After four straight years of declines, sales of million-dollar homes and condos rose last year in all 20 major metro areas, according to DataQuick Information Systems. On average, these cities saw an 18.6% jump in high-end home sales.

San Jose, Calif., had the biggest market for million-dollar homes, with a 27.4% spike in sales last year; Phoenix saw the smallest increase at just 0.4%.

Other big gainers were Honolulu (26%), San Diego (14%) and Nashville (13%).

And in Washington, government workers continued to bolster the high-end market, which grew 20% here as well. The DC area is now the best educated place in the nation and and one of the highest paid. Median family income is now over $101,000 in the D.C. area and more than $109,000 in the Bethesda-Rockville, Md., area.

"It hasn't been a good six months for all people, but it was a good six months for rich people," said Glenn Kelman, CEO of Seattle-based real estate brokerage Redfin.

"Higher income households are feeling better about their financial security," said Greg McBride, chief economist for Bankrate.com.

As their confidence soared, the wealthy took advantage of bargains in expensive homes. An average seaside manor on Jupiter Island, Fla., that might have sold for $4 million in 2006 cost less than $3 million last year. The Brentwood bungalow in L.A. was $1.5 million instead of $2 million, and that Scarsdale colonial fell to $1.1 million after gong for $1.5 million four years ago.

Some metro area markets experienced modest price rebounds in 2009, which was enough to push a handful of homes above the million-dollar threshold. In San Jose, for example, home values rose for several quarters, boosting the prices of homes right on the border of a million.

"You had some creep into the million-dollar bracket," said broker Scott Kliewer with Windermere Silicon Valley.

But in most cities, the million-dollar homes sold were actually million-dollar homes, not just those that crossed into the high-end territory because of rising prices.

In New York, where volume grew nearly 25%, high-priced home sales were driven by bonuses on Wall Street. Even though bonuses were slightly smaller last year, they still topped $120,000. And that's just the average; many employees brought home significantly more.

Wealthy clients have driven the business for Gary Reavis, the CEO of Keller Williams Hollywood Hills in Los Angeles, where sales rose about 20%.

"There are not a lot of million-dollar home buyers even in the best of times," said Bishop. "It's always nice to see any segment come back, but it's the middle of the market we would like to see set the pace." 

Getting a mortgage for these expensive homes was cheaper as well. Normally buyers have to take out a jumbo loan to finance any mortgage beyond the $417,000 threshold ($729,000 in high-cost cities such as New York). These loans have higher interest rates because they are considered non-conforming -- or higher risk -- and are not backed Fannie Mae or Freddie Mac.

In 2009 buyers of high-end homes paid 1.8 percentage points more in interest than the average buyer. But in 2010, that spread had shrunk to just 0.6 points more.

That reduction would save about $780 a month on a million-dollar mortgage. That may not matter much when you're a software gazillionaire, but for buyers stretching to reach that league, it can make a difference.

Bill Barnett here:

The man I may track more than anyone else when it comes to national housing market is Lawrence Yun, Chief Economist for the National Association of Realtors.

I quote him on the show a lot. Just this past week Yun said, "The up trend in home sales is consistent with imporovements in the economy and jobs."

Yum was referring to the release of data from the NAR that showed the sale of existing homes (by far the most improtant housing statistic) and posted a gain for the third straight month.

The report also revealed that for the first time since the end of the tax credit monthly sales were higher than they were for the same month last year.

Inventory also dropped over 5% to a 7.6 month supply. The lowest level its been in more than a year.

If you're and investor...GET OUT THERE AND BUY SOMETHING!

I found more good news on the real estate market and wanted to share this with you.  Did you know...

Delinquent Mortgages are at the lowest levels in 2 years

"While delinquency and foreclosure rates are still well above historical norms, we have clearly turned the corner" in the foreclosure crisis, Mortgage Bankers Association Chief Economist Jay Brinkmann recently said.