Worst Cities To Invest In Real Estate


Kris Krohn here with Limitless Wealth TV
and today we’re talking about the worst cities to invest in when it comes to
real estate. Worst cities in America to invest in.
Steven, we could list off lots of cities but instead, we want to actually teach
you principles, three specific principles for what you need to look forward for
what could be a good city or a bad city and the reason why we’re doing this is
because we get a lot of comments, people like, “Hey, I live in New York” or “I live in
San Fran and how am I exposed to actually breach and get into real estate?”
And here’s the reality, sometimes you just shouldn’t be limited to what’s in
your back yard because what’s in your back yard is not, this is my stank face,
it’s not what you should invest in. – Look, again, we love America,
we’re not here to call out any specific cities, don’t care where you live and
what your situation is – Because you all should be investing in real estate – We
should all be investing in real estate but I want to talk about what, we want to know about
what makes up a bad city to invest in, meaning what are the specific things you
need to be taking a look at and the first one is the economy. How is the economy
doing? Is the economy increasing right now? Is the economy decreasing or is
there job growth or are jobs being moved out of your city or your state that
you’re in right now? – All you got to do is stop by City Hall, your local County and
just ask around a little bit and just say, “Hey, where’s the path of progress?
What’s going down? Like for example, Steven and I, we live
here in Utah so this is central base for how we run our entire national
conglomerate of doing real estate in all states in America and one of the
things that’s really great about Utah is that Utah super attractive to companies
like Adobe that’s moving in and Google and these large corporations and and if
you go down and talk to the city, they’ll tell you, “Oh, over the next 10 years, we
think that we’re going to grow, you know, by 900,000 people.” And they
look at that growth and it becomes very apparent whether you’re in an area that
is booming or dying. – There are literally hundreds of millions of
dollars being put in maybe even billions of dollars being put into these
economically growing areas that you want to be investing in and so you want to
look for that, you want to say, okay, well what’s being put in? What kind of
infrastructure is being built on their roads and freeways and highways that are
being built right now? Are companies coming into these areas and establishing
their businesses here? And those are good indicators of that being a place that
you want to be investing in. Now you need to watch out for a very important
economic principle called economic winter. Okay, economic winter is
talking about specific areas around the country where there’s two things that
are happening. We talked about the first one which is, how’s the economy itself
doing as far as business growing or shrinking but what you especially faced
with economic winter is when a specific area, population wise, is
decreasing, people are not replacing, people are moving out of the cities. So
there are some areas in the Midwest, for example, where right now, they are
shrinking. What happens to real estate if no one is there to buy it? – It’s left
vacant. – It’s left vacant and it’s worth nothing. A home is only worth what
someone’s willing to pay so if you have an area where enough people are moving
away, you’re going to get these ghost towns, this is already happening in Europe,
right now America is still doing quite well as far as to star population growth,
we’re barely replacing ourselves which means to humans get together and they
average making more than two humans but there are places in the world where that
is not the case and that is really hurting real estate a lot. – One part
of this you want to be aware of and this is kind of a little bonus, I just wanted
to throw in for you, is to be aware of the governments in the different areas
that you’re in and this isn’t even state by state, this can be city by city, you
want to be aware, is this government, is it a landlord friendly government or
is it a tenant friendly government? We’ve had experiences with both, we’ve been in
areas that have been extremely tenant friendly when that’s the case for a
landlord, for an entrepreneur, for someone that’s an investor in real estate, it’s
not good. – Well it’s the difference between A, someone is actually not paying
the rent and the local government is going to let them squat for
90 days or a 180 days before we actually pull them out of there and
that’s, you still have a responsible at the bank,
you still owe money and yet they’re actually, the tenant is protected to stay
in their victim financial situation and then you as the investor get to carry
the brunt. So there are other areas that are the opposite. 3 days you’re out,
your butt’s grass, you’re gone. – So the worst of this America are those that
are very tenant friendly so stay away from those. – Yeah and then the
last thing that we want to share for today’s video is, check out the median
income for the area. You know, people’s ability to pay rents, people’s ability to
pay for your house really comes down to how much money they make and there are
some areas where the average income is $60,000 a year and there are
other areas where the average income is $30,000 a year, now when a household
income hits $30,000, that’s considered poverty level. Nationwide in America, the
average household income right now is sitting right around $59,000
and so, obviously, when you get to a very micro level and you have a house
and you’re vetting attendance, obviously, the tenant that makes more money and as
a better credit is going to make a better tenant so before you look at it
on an individual at basis, you want to look at it the macro level which says,
well let’s judge this city and citywide, the average income here is $30,000,
average person, I’m going to deal with is at the poverty level, that may not make your
best long-term tenant in the home and being facetious, it’s not going to make
your best long-term tenant home but some of the areas when Steven and I invest
nationwide, for example, you know, the U.S. is made of 360 sub markets, somewhere
around there and when you take a look at each one of those markets, what we do is
we have a classification system that eventually says who are the dogs and
where are the rock stars. I can tell you for example that we go into a very small
part of Florida into the Kissimmee County, just south of the state parks,
Disney and things like that, the average employee that fills up that entire
population there of running Alice’s, those are houses that we’re still buying
for 120, 140, 160 that still cost over $200,000 to build but
the average person there makes $60,000 a year, okay, and what
does that equate to? That equates to not having a problem with first of all, the
vacancy problem, we don’t have that but more importantly, repairs, missed payments,
and things like that just aren’t going down because the economics are good so
you take a look at that at market and the other four markets we’re in right now,
strong economy, strong population and then you also have really really strong
income for the average person living in that area. You put those three things
together and add the fourth one, Steven’s bonus, on governments that are friendly
to investors and favor us and the decisions of how we manage real estate
and you’re going to be stepping into a fantastic market. If you want to know
more about what these markets are, there’s a video up here that you can
click that we’ve shot earlier on our favorite hot markets where we’re
investing right now and after you done that, you can also click
this link and we will share with you what it would look like to work with our
team, you can access our 200 experts and we’ll take you right into those markets,
sight unseen and actually help you buy all of that real estate, give you a
hundred percent of the ownership but we’ll take care of all the hands-on
management and day-to-day so that you get to come out like a rock star.
So those are the principles on the worst cities to invest in but if you’re ready
to invest in the right cities, the best cities around the entire country, click
the link up here and start actually viewing some of the deals that me and my
team are doing and jump in and request a consultation where we’ll sit down and
give you a game plan on how you can start investing in the best cities.

52 Replies to “Worst Cities To Invest In Real Estate

  1. Kris, i just sold my house in Kissimmee (for a nice profit). This city is notorious for squatters especially in those pay by week hotels. The hotels cannot evict for months!!! Osceola county wont help either. Good luck. I dont want to invest there.

  2. Hey Chris great videos,im a big fan of yours. Can u make a video about tips for first time home buyer? Like mortgage broker or go straight to bank urself, or like is 20% down or just 5% down,which is better when it comes to monthly amortization? I heard either way would just make a few dollars difference? How true is this? Thank you,pls keep making this videos!

  3. Great content. These are the coulture vulture poucher type to look out for because u will get booted should u ever hit a financial brick wall. But I can see and agree from both sides. Not shoot these yuppies execution style.

  4. Whatโ€™s the best way to find out if the governments friendly to investors in a particular market? And how can I find the medium income?

  5. Montana is an interesting state the economy is going up and more people are moving towards Missoula however the Bitterroot is high for rentals but there's no reason unlike Polson and Flathead where you get Lake front prices. I'm happy to hear you're located in Utah though.

  6. wait, so Utah is booming, but its also bloated right now. Should one buy or hold in this market, specifically in Salt Lake county? The prices are higher than 2007 market.

  7. The title is misleading. There is no list of cities. They just give you a generic checklist for how to tell if a town is growing, shrinking, and how to know if it's going to be sustainable to invest there.

  8. Ill simplify this: dont invest in a location where democrats have been or figure to be elected for a long period of time. Given enough time, they turn every โ€œparis of the midwestโ€ into Detroit. Yikes.

  9. How do we invest in cities far away and deal with logistics of getting tenants etc if we are not on place? (I'm not yet able to partner to get a loan so looking to start using sandwich lease option to get started)

  10. What is your opinion of Reno, Nevada ?? Is it a good place to invest in real estate now in July 2018 ????

  11. Ive lived in Kissimmee for 15 years and i've seen first hand the migration of people from all over the world( thanks to Mickey mouse). Great video ,you have a new subscriber ๐Ÿ™‚

  12. In my opinion the โ€œrust beltโ€ areas/states (some in the Northeast) where population has been decreasing. Homes may seem cheap these days, but the area has been hit hard since the last recession and isnโ€™t on an upward trend.

  13. Um, demand but you totally overlooked SUPPLY. If there is literally unlimited supply you will never see an investors market.

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