what is the best way to learn about the local real estate market

Question

I have a few properties down my belt but would like to gain more in-depth knowledge of the local market. but I have no interest in becoming an agent, (always felt an agent has to be a semi-public figure to be successful, which is not for me) but feel like just the pure amount of traffic they handle provides valuable information. What are some alternative ways?

Joshua Janus · Answer

When researching a market, it is important to pay attention to the factors you highlighted above as well as what brings people to the city and what will continue to do so. If the price is relatively low/sqft and the city has a growing population and job market, the demand for homes will increase which leads to home appreciation. Also see how the specific market handles STR as that brings in a large section of rei investors and can drive prices up. Here is a quick analysis of my market. Paying attention to recent and upcoming capital investments by the city can also give you a good idea of where the money is flowing in the city and you can see if it is recovering or growing. Columbus, Ohio is a great market to invest in. The population has been growing here year over year over the last decade, it is home to The Ohio State University which has over 50,000 students that live here along with those that visit, and it also holds a diverse range of young professionals and traveling nurses to fill the demand of the multiple business corporations and hospitals stationed here. Tech companies are continuously moving here and establishing a footprint in Columbus as well. Intel is a great example, who is building the largest chip manufacturing plant in the US right here, and it will be a $20 billion dollar investment that brings a few new thousand jobs. https://www.dispatch.com/story... are a few more recent investments https://www.10tv.com/article/money/business/hydrogen-power-company-hyperion-bringing-700-jobs-to-columbus/530-25907aab-5517-4661-a9f3-d2ed2d5be6b0https://columbusunderground.com/kaufman-development-purchasing-franklintons-idea-foundry-sp1/ https://highlandcountypress.com/Content/In-The-News/Headlines/Article/Development-projects-will-support-1-4-billion-in-investments-in-Ohio-communities/2/73/77342

Carlos Garcia · Answer

A really good way is to first write out what you are looking for in an investment. Second, do some of your own research on the local market. Third, find an agent (on Bigger Pockets or through referrals) that knows his/her stuff and can give you the lay of the land. Always look for people who know more than you and you will get to where you want to be faster. Where are you looking and what are you looking for? Long-term rentals? Short-term (Airbnb) rentals (STR)? If the latter, you can start looking in the markets with some of the strongest STR markets. A good start is short-term wealth book by Avery Carl. The short-term shop is their website and has the regional markets they work in. I wouldn't try to reinvent the wheel with STRs due to a number of reasons. If you need agents, @Melissa Haworth or @Matt 'Roar' Gardner.

Patrick Drury · Answer

@Patrick K.Get out there and network some. Go to some local meet-ups where you live.

Eliott Elias · Answer

Go to meetups, submit offers, network like crazy. You don’t have to be a public figure to be a good agent

Logan McKay Zylstra · Answer

Take an agent out for coffee or ask your current realtor if he or an agent at their brokerage sends out weekly or monthly market updates.

Robert Wilson · Answer

I think the best way to learn the market is to become it. What I mean is, look at the zillow, realtor.com etc. EVERYDAY. Look at what has sold.. what is not selling (listed for sale 100+ days), how much rent is for a particular neighborhood vs a different neighborhood. Real estate is location, location, location. When you can break your city or area down into micro markets based on the neighborhood, then I think you will have a better and true understanding of what is really going on in your area.

Mike Dymski · Answer

Analyze 50-100 real opportunities (and make offers) and you will get to know the market and your criteria well (and pick up properties along the way).

Evan Polaski · Answer

@Patrick K. "learning the local market" is a loaded question. What do you mean by this? Agents can give you good info on transaction volume and values in a market. They can give anecdotal information on crime, school districts, etc. But they will have their own biases too, which may or may not match yours. And if you are looking at rental market, agents may not be the best, or only have partial insights, since they have exposure bias to buyers, not renters.Property managers will help if you are trying to gather market insights on rentals in various areas, who is renting, things to watch out for, expenses typical for the market, etc.I also like the "drive it yourself". Drive at night, during day, weekdays and weekend. Are people keeping lawns clean, are parties consistently being thrown every night, are kids out playing after school?

Luka Milicevic · Answer

@Patrick K. My best advice is to print a map of your target area and get in your car and drive down every single street. Highlight all the streets you have gone down to mark them off. Write down a few addresses of homes that need work and then look up values around them. Essentially driving for dollars. I did not want to be an agent, but I ended up getting my license. It was one of the absolute best things I have ever done. My knowledge exploded, and I can name off values, zip codes, housing types, age of homes, etc.

Amaury Zambrano · Answer

I recommend providing value to a local real estate investing team. You don't have to be an agent to understand the local market. Start going to meetups every week.