Best Areas to Invest in Real Estate

Do you know how to identify the real estate investing “honey holes”? That’s what I’m about to share with you. Plus, some big myths will be dispelled and most importantly, you’ll know the best areas to invest in real estate.

Real Estate Investing "Honey Holes"

When it comes to flipping houses, creative investing, and acquiring rental properties, some areas produce far better results and returns than others. Just like with fishing, there are some spots in a lake that hold much more fish than the rest. Those are the “honey holes”. Every lake has them and every real estate market has them too. But you have to know what to look for so you're not wasting your time in the wrong spots.

For nearly 20 years, our organization has coached and mentored many of America's most successful real estate investors. We've been a part of thousands of deals, and we've helped our apprentices focus on the best areas. And that's one of the many reasons why we've achieved such extraordinary and consistent results over such a long period of time. Just like fishing, we target the best spots, and that's made all the difference.

Where to Invest

If you’re a real estate investor, or aspire to be one, you’ve probably spent some time trying to figure out where to invest, and perhaps you’ve searched or asked AI which market is the best to invest in. Here’s a big myth to dispel: The grass is NOT greener somewhere else. The diamonds are in your own backyard. In our training, Close to Home vs Long Distance we explain why it’s so much more profitable to invest close to home, rather than far away.

What Defines a “Good” Area?

But in what area within your own backyard are the most diamonds found? Many simply say the “good parts of town”. But the definition of “good” can be different for real estate investing, versus where you personally want to live, or dine, or frequent. For investing, “good areas” are the ones that make the most money, and that’s what you’re about to learn how to identify, and that’s what we teach the people we mentor.

Safe, Affordable Housing

If you’ve watched our videos in the past, you’ll know that we focus our house flipping, creative investing, and rental property acquisitions in safe, affordable housing. Check out the video Biggest Opportunity in Real Estate Right Now (2024) for more details on why that has been and continues to be our focus. It’s the safe, affordable housing pockets that will be your investing honey holes. Not the nicest parts of town, or where the most construction is going on; much less where you’re most likely to get shot! The best area to invest in real estate is the safe, affordable housing in your own backyard.

It’s All Relative

Perhaps your knee jerk reaction is, “Wait, Brian! There are no safe affordable housing areas near me! I live in Honolulu, the most expensive metro area in the United States!” No worries! It’s all relative. What’s “affordable” on the island of Oahu is very different from what is affordable in Austin for example. And although not every city has safe affordable housing pockets, every region does; within an hour’s drive or less for almost anyone.

5 Key Indicators of an Investing Honey Hole

So, how do you identify these honey holes of safe, affordable housing? Here are the 5 key indicators that tell you when you’re in a honey hole spot:

1. Below Median Home Value

First, you’re looking for 3 bedroom, 2 bath, single family homes that are below the median home value for that region. How do you determine the median home value? With Zillow’s free “Home Values” tool. Using this resource, you can refine your search to properties under the median value of homes in your city or county. Check out the above video for a guide on how to use this invaluable tool!

2. Affordable Businesses

Next, you’re looking for affordable businesses that cater to the more budget conscious population, such as Dollar Stores, Sam’s Club, Wal-Mart, Auto Parts Stores, and fast-food restaurants.

3. Family Friendly Amenities

You also want family friendly amenities. Identify areas with parks, churches, and schools rather than liquor stores, convenience stores, and clubs.

4. Cars in Driveways

Fourth, pay attention to the cars in driveways. People tend to buy the best car they can afford, so you’re looking for decent cars, but not luxury vehicles: Kias, Fords, and Chevys, not BMWs, Mercedes, or Lexus.

5. Landscaping Pride

Finally, you’re looking for neighborhoods where there is clearly some landscaping pride. It doesn’t have to be perfectly manicured, but you should avoid areas where house after house has neglected yards.

Where you find these 5 key indicators, you’ll find your honey holes.  And when you focus your investing in those safe, affordable housing spots, you’ll get the best returns; whether you’re flipping houses, creative investing, or acquiring rentals.

How Do You Target the Best Areas?

How do you effectively target the best areas? That’s what we teach those in our Apprentice Program. Marketing for the best deals is one of the most challenging and ever-changing aspects of being a real estate investor. It’s something we stay on the cutting edge of, understanding what's working and what’s not.

Every Successful Real Estate Investor Has a Mentor

To learn more about how you can be mentored by our team of experts, fill out an application for our Apprentice Program here: Freedom Mentor Apprentice Program.

If you have questions for us, text FREEDOM to 305-315-8030 or post a comment below.