Successful real estate investors know that one of the most important basic foundations for profits is a thorough understanding of their market. There aren’t enough strategies and techniques in existence to invest successfully if you’re clueless about your market and current/future trends.
There’s no reason to go over the reasons why you need a deep and comprehensive market knowledge to invest successfully, but what happens when you must move to a new market or you expand a successful business into a different market? This is especially challenging when the basic market characteristics are very different. If you move from an urban market to a rural one, or from a heavy condo or multi-family market to a single family home dominated area, you need to add a property type refresher to your other market evaluation strategies.
The Market Fundamentals
This is something you can do from afar before you move, as it’s going to be easily-researched on the Internet. It’s “big picture” analysis, such as population demographics, major employers, and economic news. What institutions and businesses support the economy and are they stable? What’s the ratio of rental properties to owned and is it historically high or low? What are the current home prices and rents compared to historical data?
Drive and/or Walk, but See the Market
There is no substitute for firsthand viewing of the homes, businesses, and neighborhoods. Drive between them and even walk a bit to get a feel for each neighborhood or subdivision. Count and photo for sale and for rent signs by neighborhood. Pay particular attention to any foreclosure or default notices posted on homes, or for homes that appear abandoned.
Meet Other Investors
Even if you long since quit participating in real estate investment club activities in the market you’re leaving, it’s an excellent activity to jump back into in the new area. You’re already an experienced investor, so you can converse with other investors in the new area and learn a lot from them. This is especially true for learning which lenders, contractors, appraisers, and title companies are best for your business.
Tour Properties
You don’t have to choose a long term real estate agent team member yet, but hook up with one or more to show you listed properties in the areas you’ve designated as your top priorities. You drove and walked to learn about neighborhoods, now get inside homes with features you believe will be on your radar for purchases.
Do the Math on Real Properties
You’re not yet ready to actively buy, but do your real estate investment calculations and valuation on the properties you’ve viewed.
Once you’ve accomplished these tasks, you’re ready to get serious and start your search for investments in your new home area.
Successful real estate investors know that one of the most important basic foundations for profits is a thorough understanding of their market. There aren’t enough strategies and techniques in existence to invest successfully if you’re clueless about your market and current/future trends.
There’s no reason to go over the reasons why you need a deep and comprehensive market knowledge to invest successfully, but what happens when you must move to a new market or you expand a successful business into a different market? This is especially challenging when the basic market characteristics are very different. If you move from an urban market to a rural one, or from a heavy condo or multi-family market to a single family home dominated area, you need to add a property type refresher to your other market evaluation strategies.
The Market Fundamentals
This is something you can do from afar before you move, as it’s going to be easily-researched on the Internet. It’s “big picture” analysis, such as population demographics, major employers, and economic news. What institutions and businesses support the economy and are they stable? What’s the ratio of rental properties to owned and is it historically high or low? What are the current home prices and rents compared to historical data?
Drive and/or Walk, but See the Market
There is no substitute for firsthand viewing of the homes, businesses, and neighborhoods. Drive between them and even walk a bit to get a feel for each neighborhood or subdivision. Count and photo for sale and for rent signs by neighborhood. Pay particular attention to any foreclosure or default notices posted on homes, or for homes that appear abandoned.
Meet Other Investors
Even if you long since quit participating in real estate investment club activities in the market you’re leaving, it’s an excellent activity to jump back into in the new area. You’re already an experienced investor, so you can converse with other investors in the new area and learn a lot from them. This is especially true for learning which lenders, contractors, appraisers, and title companies are best for your business.
Tour Properties
You don’t have to choose a long term real estate agent team member yet, but hook up with one or more to show you listed properties in the areas you’ve designated as your top priorities. You drove and walked to learn about neighborhoods, now get inside homes with features you believe will be on your radar for purchases.
Do the Math on Real Properties
You’re not yet ready to actively buy, but do your real estate investment calculations and valuation on the properties you’ve viewed.
Once you’ve accomplished these tasks, you’re ready to get serious and start your search for investments in your new home area.