Tips for really getting to know your market

[Kelly Bochna]

Hi BP Friends! I have started my REI journey by reading the Ultimate Beginner's Guide, watching some webinars and reading some forum threads, really enjoying it so far. I have a lot more to learn before I make that first purchase, but one of the things I really want to get a hang of is becoming an expert in my community/neighborhood/market. I am fairly new to my city, Philadelphia, and wanted to hear of any tips people had for really getting the know your market. All advice welcome!

[Scott C.]

Welcome! I am in the exact same place you are. Just about to finish the Ultimate Beginners Guide to RE Investmet. Did two webinars. Very excited about this. No purchase yet either. Doing my homework until I feel I know enough to get my first property. Good Luck! I'm sure you will do well.

[Dewain J.]

I just started las year, not even a full year yet. I closed on my first property in august which was a single family home. I'm up to 8 units now. I think my best advice is just start DOING don't wait. I regret not getting started sooner despite having the interest. Now that I'm in, I'm addicted and can't stop thinking about it lol. Don't wait for the "right time", take some action that will get you closer to getting started today. I've been blessed to have a mentor to help me, and that has expedited things tremendously. So my recommendation to you would be to continue to read, learn, and see if you can make a connection with someone with experience to show you the ropes.  Philly is a great market for it right now too. Good luck!

[Account Closed]

Kelly Bochna My favorite way to get to know a market is to take drive around the market with different people and get different opinions on each area. I will meet with Property Managers, Turnkey Providers, Realtors, and Investors. After a few of these tours, and a little online research I start to develop my own opinion.

[Kelly Bochna]

@Dewain J. and @Scott C.

Wow!  Great advice definitely appreciate the help from fellow Philadelphians!  I would love to add you both to my network for the local area.  

[Paulette Midgette]

 Hi @Kelly Bochna, I would suggest as a first step research the city online.  Look at site like the Philadelphia planning commission, PlanPhilly, and Naked City.  Ask your fellow BPer's what neighborhoods they would recommend (based on your RE investing goals), and finally drive the neighborhoods by yourself or with someone who knows Philly. 

I recently heard a story from a Philly investor who moved here from Maryland a few years ago.  He had some money to invest. He found himself an agent and the agent was very attentive and took him out every week to view properties.  In no time this investor picked up a couple of home for 10k each, but about $50K in renovations (stainless, granite counters, etc.).  He listed the homes for rent at $1200 per month.  The problem, the neighborhood market rent was on $450.00 maximum.  He wasn't familiar with the city and his agent drove him to the places were the agent wanted to move properties. 

Best advice, do you homework, research, research before pulling the trigger.

If you search on my name it should bring up my previous posts with links and neighborhoods I would recommend. 

Good Luck

[Scott C.]

Excellent advice 

@Paulette Midgetteundefined

[Mark Callazzo]

Hi @Kelly Bochna, Sounds like you are moving in the right direction. My advice to you would be to do a drive by in the neighborhoods you are potentially interested in investing in. Philadelphia can be very different on a block to block level. You want to really get to know your surrounding in a city like this before you invest. Then, you want to go to your local REIAs and get to know like-minded individuals in the industry. Most of the investors I know in Philadelphia are very willing to network and help each other out. It might be good to chat with other Philadelphia Investor one-on-one and pick their brain a little bit. If you look on bp or meetup.com you will be able to find a bunch of REIAs in Philadelphia. I have been to a few myself. Good Luck!

[Kelly Bochna]

@Paulette Midgettethis is great advice, and typically how I operate.  I like doing my research and really understanding before pulling the trigger.  I am so glad I have found so many helpful investors on BP so far, the advice is priceless! I will definitely look up your older posts to check out neighborhoods/blocks you recommend.  Any areas in particular you think are a good starting point?

Again, really appreciate everyone's help @Mark Callazzo@Account Closed

[Mark Vejnar]

Paulette Midgette agreed. Great insight.

Regular luncheons with agents can be quite insightful as they're engaging with the market throughout the day. I've moved a few times and have found demographic websites to be helpful and informative. Also get to know all of the various city, civic, municipal sites and offices. It's always interesting to visit the planning commission and look at past land uses, boundaries, etc., and compare to current uses and the city's plan. Understanding this type of data can help you identify which neighborhoods may be headed for decline and which may be ripe for gentrification.

It's also important to understand the economic importance of your city. What does it bring to the [local, national, global] table? What are the predominant industries and why? Who are the largest employers? As you begin to understand this stuff the relevance of each individual locale will jump out at you and market inefficiency a will stick out like a sore thumb. It sounds like a lot of work but you can develop a pretty deep knowledge base within a couple of weeks.

Also, it doesn't hurt to develop a relationship with a few reputable SRA or MAI appraisers- Google is your friend.

Good luck!

[Paulette Midgette]

Hey @Kelly Bochna, there is a lot going on in the 19144 (Germantown) and 19119 (Mt. Airy, specifically east Mt. Airy).  I would start in these area...great community involvement, plans for commercial district revitalization Germantown...Mt. Airy commercial district is further along than Germantown, and there is a growing arts community here.  These areas are readily assess to Center City via bus routes and regional rail...minutes from major roadways (Lincoln Drive, 76, 309, and the Turnpike).  All reasons why I would suggest starting in these zip codes.

Good luck.