Location Magic: How to Find the Best Cities in America to Invest In

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Summary

Neil Bawa, a demographer and data scientist, presents a methodology called 'Location Magic' to help investors independently benchmark and identify the best cities in America for real estate investment. He outlines five key focuses: population growth, median household income growth, median house/condo value growth, crime reduction, and job growth, providing specific metrics and resources to evaluate potential investment locations.

Highlights

Introduction to Multi-Family University and Location Magic
00:00:04

Neil Bawa introduces himself and Multi-Family University, highlighting past webinars and upcoming events, including '10 Disruptive Trends' and focuses on the core of his presentation: a methodology to find the best cities in America to invest in called 'Location Magic'.

The Core Principles of Location Magic
00:01:11

The goal is to provide a toolkit independent of Neil Bawa or Multi-Family University, enabling investors to benchmark cities based on public data. The system helps to evaluate the investment potential of any city within 10 minutes.

Real Focus #1: Population Growth
00:05:24

Population growth is crucial, aiming for 10.5% growth between 2011-2019 for cities between 250,000 and 1 million people. This number adjusts based on city size, with smaller cities needing higher growth rates. Neil shares how to find and calculate the number from Google's population data and a provided excel spreadsheet.

Real Focus #2: Median Household Income Growth
00:13:10

A 35.2% income growth between 2000 and 2019 is desired. Neil mentions to add 1.5 to 2% to this number in the future for next year's calculation or consult his updated presentation. He provides city-data.com as a source for this data.

Real Focus #3: Median House/Condo Value
00:17:17

The ideal growth rate is 51%. Data can be sourced from city-data.com. Neil used Columbus, Ohio as an example and calculated its growth at 75% during that selected timeframe. Columbus is considered strong market for growth.

Real Focus #4: Crime Reduction
00:21:29

Invest in cities where the crime index is below 500 on city-data.com (or 400 for smaller cities) and is consistently declining. The goal is to ensure the city's crime rates are going down for increased returns on investment.

Neil Bawa's Apartment Boot Camp
00:25:57

Neil promotes his apartment boot camp, emphasizing its focus on financial freedom through real estate investing, specifically in apartment buildings. It is a no fluff, no pitch, technology driven course actionable to help investors find brokers and properties and learn everything about raising money.

Real Focus #5: Job Growth
00:29:44

Job growth carries a 40% weightage, with an ideal target of at least 2% growth (or 1.5% for larger markets like Atlanta). Due to the pandemic, use a cached version of the Department of Numbers website from February of the previous year via the Wayback Machine to assess job growth data accurately. Saint George and Idaho Falls have the highest job growth at the time.

Analyzing Job Growth Data and Market Examples
00:37:14

Diving deeper into the job growth data, Neil discusses the implications of different growth percentages and analyzes various markets. He also identifies promising areas, such as North Carolina's urban centers and smaller Texan cities, and also warns against markets with climate-related concerns or low yields.

Q&A: Analyzing Cities and Investment Strategies
00:47:57

Neil answers various requested concerns and provides further market insights (such as why he prefers Oklahoma City as option rather than Tulsa), and addresses concerns about cash flow, long-term investment considerations, and specific regional markets such as newark.

Miami's Climate Change Risks and Final City Recommendations
01:03:33

Addresses Miami's risk due to climate concerns from major financial institutions, and final top three recommendations are Saint George in Utah, Idaho Falls in Idaho, and New Brunswells in Texas.

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