Many of us who live in big cities have had to go out of our states to find commercial properties that meet our investment objectives. And this is because sale prices in big cities have increased so much that our investment returns have shrunk to almost nothing. Going out of your community, you'll find the kind of great deals that were in your city years ago. In most cases, it's just a matter of time before that community will be out of your price range too. If you live in the city, consider going to the suburbs to look for deals. Go to the outskirts of your community, to "sleepy" towns and undiscovered areas, to find your next great deal. You may find lower prices, great investment returns, and greater growth than you would in an already matured big city.
Secondary investment markets are markets outside of big city markets that are much smaller and less developed. These are potentially great places to begin investing because you're entering a market that has yet to fully mature. You are basically getting in on the bottom. Properties found in secondary markets have lower prices and rents that aren't too far off the levels of big city markets.
Tertiary markets are even smaller than secondary markets and can be quite scary to invest into because of this. We've invested in some of these markets before where the population was only 15,000. That's scary for most folks, but the town had everything going for it that we liked — growing population, stable job growth, a vibrant local economy, and a demand for what we're investing into. It made sense for us, we saw it as good risk, and in the end we're still being rewarded.
Was this article helpful?
Discover the Jealously Guarded Insights of Real Estate Tycoons and Hot Dealers! Back in the days of the wild, Wild West, when easterners traveled across this vast country looking for opportunity in the newly opened territories, they were often referred to as a ‘tenderfoot’.