Navigating Real Estate Investment Challenges | 11min snip from BiggerPockets Real Estate Podcast

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

BiggerPockets Real Estate Podcast

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CHAPTER

Navigating Real Estate Investment Challenges

This chapter explores the complexities of timing investments in rapidly growing real estate markets like Austin and San Antonio, emphasizing the role of new construction and local economic indicators. It discusses strategies for investors to adapt to changing market dynamics, including negotiating in a cooling frenzy and targeting distressed properties.

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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!

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