Off to Charleston to Scout Real Estate Opportunities

Most of us over time take on the characteristics, views and attitudes of the places where we reside. This osmosis is part of human nature I would imagine. Most of the country's media centers are located in big cities on the coasts such as New York, Los Angeles and Boston. This impacts the press's reporting on politics, the economy, the markets and other topics. Stories that don't meet the accepted narrative are often omitted or misinterpreted. My friend and business partner and I are in the middle of a six-day road trip to Charleston, SC that began early Saturday morning. We are scouting out potential residential and commercial real estate opportunities in the city. Charleston should be a primary beneficiary of the exodus out of the large and high tax cities like the Big Apple that has accelerated this year thanks to the pandemic. While the media continues to downplay this story, I have been covering this emerging trend since most of the nation was put in lockdown mode in March. This migration triggered big rallies in the homebuilding and housing related stocks I have profiled in those pieces such as LGI Homes . I am looking to personally profit from this thesis via real estate as well as stocks. The loft in Delray Beach, FL I just purchased is currently being refurbished. It will look to be rented out at primo rates during winter high season to New Yorkers and others looking for a warm place by the ocean with a terrific food and cultural scene. I am now looking for opportunities for the winter to action while away from Delray. Charleston fits the bill. It is a small, historic location that just got ranked the eighth best city in the world by Travel & Leisure for foodies. It also sports architecture that befits its status as one of the oldest cities in America. The town seems to be in the early stages of gentrification with new modern apartment buildings springing up everywhere. Home renovation is also becoming big here and as my buddy says, the only thing missing here for the most part is a 'fresh coat of paint'. We left at 4:00 am in the morning Saturday up I-95 and by seven were seeing some heavy traffic. The media continues to focus on how the economy needs more stimulus and is on the cusp of 'stalling out'. That is certainly understandable given most of the press resides in cities that have been on one form of shelter in place orders or another since March. That is not the case for most of the rest of the country, however. Job openings last month were just 2% below the levels of February and the unemployment rate is at 6.9%. While that is double the historically low unemployment rates we saw early this year, they are a far cry better than Federal Reserve's June projection of 9.3% by year end 2020. If one ventures out past where the subways don't run that becomes apparent. Other than masks, one would be hard pressed to find any evidence of Covid-19 here in Charleston, much like in Delray. The place was absolutely packed throughout the weekend with live music and cheerful crowds. On the way up here we noticed about 90% of the tractor trailers we passed on the highway had big old 'Drivers Wanted' signs posted on the back of the truck and help wanted posters are a common theme on King Street here as well. Provided we don't talk ourselves into another series of regional lockdowns, I think the economy will continue to perform at a far better pace than the media gives it credit for. That is a 'Big If' right now which is why I continue to be cautious about the market overall. However, on Wednesday, we will strike up an optimistic tone and offer up several small cap stocks that will benefit from a continuing economic rebound in 2021. This will include one company that is working around the severe truck driver shortage in this country, yet another story most of the financial media has missed in recent months.

Off to Charleston to Scout Real Estate Opportunities

This city should be a primary beneficiary of the exodus out of the large and high tax places that has accelerated thanks to the pandemic.

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