For investors, North Dakota used to be known for its frigid temperatures and barren landscapes, and also for the isolation many residents prized. Now an oil boom is quickly turning this into the hottest economy and real estate market in the US, and an international sensation. Local populations are doubling within just a few years, and are made up at least initially of migrant workers, mostly men, attracted by high-paying jobs. And while booms are known to eventually bust, the oil reserves in the Bakken region of the state are not expected to run out for a long time. Technology and agriculture are also major sectors contributing to the improving economy.
Murphy and his wife are among those who have moved to the state recently, spurred on by the economic opportunities. They used to run a successful real estate agency in Colorado, but hundreds of sales suddenly dropped to less than 10 once the recession hit and the US housing market crashed after years of unchecked growth.
It didn’t take long for Murphy to find better luck in North Dakota. He and his wife set up a motor home in a parking lot in Williston in the spring of 2011, living in their office as well. Within a year, they had done a million dollars worth of business and were able to add more agents and open a 600-square-foot brick and mortar office on Main Street. They plan to open other offices this year in Watford City and neighbouring Montana.
- Excellent ROI (36%), with long-term passive income
- Motel development offers expected rental rates of $120pn
- Families, oil workers and associated professionals need housing
- Very high yields from long-term investment
- Long-term capital growth with land and property prices rapidly increasing
- Purchase price just $61,000 (all inclusive)
Source: Cash Flow Gold