Blue State vs Red State - Where are deals in 2024?

One of the more common discussions around Real Estate Investing for the past decade or so (I guess before that too but it REALLY seems loud the past decade) has been around:

Which State Should You Invest In??

Its honestly a ridiculous question since all the blogs/analyst websites that write these click baity articles choose data that supports their own personal and political interest making none of their reporting valid.

So as a result, since no one knows what to think, investors have started making their Loudest and Proudest statements about how they are leaving BLUE States (California, Illinois, Washington ect… ) because of their tenant friendly legislations and push for rent control and moving to buying properties in RED States (Mainly Texas, FL, and the South East).

But is this actually the correct choice??

Now ultimately its up for you to decide, but as someone who has done over 450 transactions across 22 different markets in the last 5 years there are 3 major patterns I have noticed.

1. There are DEFINITELY more Opportunities in the RED STATES
   Without a doubt, we source WAY MORE DEALS in the red states we operate in. The cities we are active in Mississippi, South Carolina, Georgia, Texas, Tennessee make up over 70% of our leads and over 63% of our contracts in the past 2 years.
   

2. The deals we get in BLUE STATES are MUCH more Profitable
   Although the RED states create MORE work, the profitability in Blue states is significantly larger. In Q2 of 2024 the profit from wholesaling and flipping in our Blue markets almost DOUBLED the red markets despite it being about half the number of transactions. This is helped by higher property values and a more hungry/sophisticated buyers pool.

3. Its possible to make BIG MONEY ANYWHERE
   WHERE you are operating matters alot less than HOW you are operating. If you run a good deal funnel, bring good service to sellers, and know how to negotiate, you can make a killing in pretty much any market.

The key is balancing expectations vs reality and understanding that MORE deals doesn’t always mean MORE profit and that MORE profit typically means you will have LESS opportunities so you better be ready to capitalize.

Overall folks, don’t get caught up in trying to find the perfect market or perfect situation to start buying and investing.

Focus on being consistent in your efforts, focusing on bringing people value, and learning/adapting as you continue to work so you don’t fall behind the trends, and ultimately you can become a multimillionaire playing the Real Estate game pretty much anywhere.

What market trends are you seeing?

Let me know on Instagram by sending me a DM!

-Mike