It’s no surprise that the real estate market is challenging for investors. With prices at a long term high, finding deals has become increasingly more difficult. While I am in no means a formal real estate advisor nor fiduciary (consult your own experts before you make any final decisions), I did want to share where I’m currently focused in case it might provide you with inspiration.
I’ve long been a fan of investing where others are fleeing. But I’m also a proponent of investing in areas you know well. If I lived in a large urban city I would be looking at acquiring rental apartments … the same ones people are fleeing to buy / rent in suburban and rural areas. So investing in New York, Chicago, or even Los Angeles (which arguably will recover more slowly than the previous two I mentioned) isn’t a viable option.
I also don’t think that commercial real estate is at a “rock bottom” price point sufficient to warrant my attention. In my opinion, we have a bit further lower to go before the day comes where I’m willing to put my feet in the water. With that said, if I saw a nice laundromat or a storage unit I might be convinced to pick it up!
But there is one area that does have some near term upside, and is just unattractive enough to a mainstream real estate investor to catch my eye: land.
Land is the ugly duckling of real estate investing. But acquired at the right price point, it represents a great hedge against inflation and potentially a lucrative long term investment. As I explained in my previous post, Camp Hacking is just one way to make money from investment land. Of course, just as with any real estate investment, you must buy carefully. But as commercial real estate plummets and residential real estate skyrockets, vacant land offers (in my personal opinion) a great opportunity to take advantage of future growth.
Again, this is simply my opinion. Your research will help guide your own opinions.
Sneak Peak: I’ve been doing a lot of thinking about when I should say “enough is enough”. When I should pivot my focus from planting to harvesting, and enjoying the fruits of my labor (and investing). As I align these thoughts to concrete ideas, I’ll share them here. In the meantime, if you have any thoughts, reach out to me on social media. LinkedIn is usually preferable!