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Gary V’s Bold Real Estate Prediction: I’m All In On This!

by | Nov 9, 2020 | Market Analysis, Real Estate Investing

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In a recent instagram video Gary Vee, entrepreneur, investor, & social media influencer, makes a prediction about the future of the real estate market that I have held for years about the Pueblo real estate market. 

 

Why Work From Home Will Disrupt Cities

 

Gary Vee, from the video:

 

“I believe that we are 100% going into a mixed work environment and it will completely reshape the rules of real estate. This will be the craziest 30 years of real estate arbitrage, ever. 

 

So for example, I believe neighborhoods that are an hour and a half away from big cities AKA New York, LA, San Francisco… that the real estate values are gonna explode. 

 

A place that’s an hour and a half out of Chicago right now, where you can get a ton of room, is gonna be a viable place to live for someone that works in downtown Chicago, because I think instead of 10 days in the office in a 2 week period, they’re gonna be there [in the office] 3 and be willing to eat crow for that extra 45 minute drive 3 days a week for the extra 2 bedrooms and a yard. 

 

Every company is going into mixed use. It’s gonna definitely lead to long term changes. I think this is way bigger than people realize. Huge change. I’m a big buyer of it.”

 

How This Has Shaped My Investment Strategy

 

I have mentioned in another article, that I was living in downtown Denver when I started in real estate. Although I’m from Pueblo. I had a hunch that the Pueblo real estate market was ripe for opportunity. My analysis of the market supported my hunch. So I began splitting my time between markets before deciding to focus exclusively on the Pueblo market. 

 

My early investments in Pueblo included a joint venture where I pooled money with two other investors that just sold investment properties in the Denver market. We began buying distressed real estate in Pueblo that we could renovate to increase the value. Some of the properties we flipped, some we are still holding to this day. 

 

Over the last three years, we have experienced cap rate compression on multifamily properties, significant equity growth on single family rental properties, rent increases, and significant increases in the average price of homes that we fix and flip. The reason is that Pueblo has continued to attract people moving away from the larger more expensive neighboring cities. Investors have similarly caught on. Although the market is not nearly as accessible for out of town investors as other metros. I’ll have to create a post on why I think that is. 

 

I believe we are still in the early phase of this market shift where we will see the biggest increases in property values in secondary and tertiary markets like Pueblo, Colorado. 

 

 

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