There are many ways to make safe investments in real estate, and perform local market analysis, but there are also a lot more wrong methods to approach it. Read these tips which will help you avoid the pitfalls of ignorance and possibly making expensive mistakes. If you have long-term capital at risk, what matters most is proper due diligence and local market analysis, with the right tools that let you compare trends at the Block Group, Census Track, and Zip Code Levels.
For the most part, only Growth Maps has these tools, but you can always build you own expensive internal system, or get lucky, with free title and stale demographics. You can also find more information in our Frequent Asked Questions section. You can try using service that scrap the web then compile free data at the macro level, like http://blog.altosresearch.com/ but if you want the latest local Block changes, this is only one place.
I remember a broker calling me, to say go buy in this ___ city, because of an AR report. I just laughed, and said you go buy there and let me know how it goes in 24 months. He did not buy there, and did not return my calls 24 months later…..
I wonder why? Macro data, compiled free title data, and The Lifestyle Market Analyst data at the macro level, is NOT enough.
How to Pick an Area and Local Market Analysis
Determine your plan, goals, strategy and tactics. Do you want to buy wholesale or retail? Most foreclosed properties are in need of repair, meaning that regular maintenance has not been done. Many foreclosed homes that are on the market will need to have new HVAC systems put in, and can have pests that need to be taken care of. Prioritize what you want when negotiating a final price for real estate. Make sure you know all of your issues, including whatever expectations you hold for each. Your priorities are dictated by how strong your expectations will be useful for prioritizing each goal.
Local Market Analysis Research
Always do your research before buying a property. If you do not research the property you are interested in purchasing, you may lose money on unsuccessful endeavors. Therefore, before purchasing any property, you must ensure you find out information about the area that surrounds your property, crime rate, the property’s age, and more. Collect data about your local housing in the area.
Look at websites like City-data.com which has old free data, to look for any foreclosed houses, average number of days listed on market for homes to sell in your specific zip code, foreclosures, and how long it takes to sell houses in your area. Or Growth Maps which has monthly data, if you have capital at risk.
Research rental properties thoroughly before buying it. If you are thinking about buying rental property, do not buy it until you have looked at the rental records for two years. Your bank will most likely want you to show them your income prior to issuing the property’s purchase loan. Research real estate properties well before buying one. There are several issues you should be aware of rental property. Is the property in good condition and does it just require minimum upkeep? The second feature to consider when looking at an investment property is its location.
Location is definitely highly important if you have a rental property. The area’s average income is the area is a third concern. This will be different from physical location since high rents is better than those with low ones. If you are doing things improperly, odds are you will make bad real estate decisions that could wind up costing you a lot of money. However, by utilizing the above article, you’ve now learned to locate the very best deals available. You just need to take advantage of the knowledge at your disposal.
Growth Maps and critical local market analysis tools should help you a lot. Testing software, we should launch this month….finally… Your comments are most welcome, and I appreciate your feedback