BiggerNews: “Boomtowns” Are Declining…It’s Time to Take Advantage

BiggerPockets Real Estate Podcast

BiggerPockets

Education, Investing, Business

4.8 • 16.6K Ratings

🗓️ 11 October 2024

⏱️ 47 minutes

🔗️ Recording | iTunes | RSS

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Summary

Real estate “boomtowns” present a massive opportunity to investors in 2024. A few years ago, buyers were fighting tooth and nail to purchase properties in Austin, Boise, Phoenix, and other red-hot markets. Demand was growing in these cities, and prices were shooting up with no end in sight. But then…it stopped. Prices started declining, vacancy rose, and investors were stuck holding onto properties now worth less than what they paid. The interesting part? These market declines might be only temporary, and those who don’t buy now could be kicking themselves a few years down the road. To give us insight into which boomtowns are worth buying in and which are worth ignoring is Matt Faircloth, multifamily real estate investor. He saw many investors rush to these real estate boomtowns during the peak and are now struggling to fill their rental units as the boom became a bust. He’s identified a sneaky strategy that allows you to buy properties at a discount in these markets to make money while the FOMO investors search for an exit option. We’ll talk about the cities with the most hype, the ones worth investing in, the future boomtowns that most are ignoring, and the massive opportunity of “economic spillover” that could lead you to markets with the best future potential. In This Episode We Cover: The future “boomtowns” that most investors have no clue about (get in early) How boomtowns form and what to look at to tell if one is worth investing in When is it too late to invest in a growing city (metrics to check before buying) The secondary markets with “economic spillover” boasting huge opportunity The sneaky move Matt is using to buy boomtown properties at a discount What to do if you bought in a boomtown that is already declining And So Much More! Links from the Show Join BiggerPockets for FREE Let Us Know What You Thought of the Show! Grab Matt’s Book, “Raising Private Capital” Find an Investor-Friendly Agent in Your Area Corporate HQ Relocations Could Signal the Next Real Estate Boomtowns Connect with Matt Connect with Dave (00:00) Intro (02:39) Real Estate "Boomtowns" (06:07) How "Boomtowns" Form (09:44) Cities with the Most Hype (12:11) Hyped vs. Solid Housing Markets (16:33) When Is It Too Late to Get In? (20:41) HUGE Opportunity for Investors (29:26) What “Boomtown” Investors Should Do (35:15) Upcoming Boomtowns Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-1029 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email advertise@biggerpockets.com. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	When I say the word Boomtown, you probably think of some old Wild West situation.
0:04.8	Maybe someone goes strikes gold or strikes oil and then sort of magically and overnight
0:10.6	this entire town springs up around them. And that of course creates all sorts
0:16.1	of opportunities because the whole economy is growing. But it also presents risks because when things
0:22.3	grow that rapidly and there's all this speculation going on,
0:26.1	there's no assurances or guarantees that it's going to keep growing in the same way or at the same rate.
0:32.1	In some ways, the same thing still happens today. Cheap
0:36.5	costs of living, remote work flexibility, and corporate investments have rapidly
0:41.4	increased populations in a lot of markets, probably in the
0:44.9	Sunbelt, while taking those benefits away from other places. And it's tempting
0:51.4	to want to invest in those markets.
0:53.2	I think everyone looks at them and has some interest in them.
0:56.7	But the thing is that these trends aren't a secret and multifamily supply and a lot of
1:02.1	investment and competition are sort of rushing
1:05.3	towards these places and that has created a boom but it leaves all of us investors
1:10.0	wondering is it still a good time to invest in these markets or have we sort of missed the
1:14.9	boat or if you're already investing in these markets and they're experiencing a little
1:18.8	bit of a pullback or a correction what do you do? Today we're going to get into everything about boomtown.
1:25.0	What's up everyone?
1:31.8	I'm Dave Meyer back for another bigger news episode this Friday.
1:35.6	Since we're talking mostly about multi-family supply here I wanted to bring on a
1:40.6	guest who one understands multi-family but has also done single family investing
	...

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