What does it mean to "know your market"

[Jacob Stuckey]

I am still having trouble with understanding the concept knowing my market. By market do you mean the area that I'm focusing on? The city as a whole or just the neighborhood I'm in? I know how to find comps but I am not sure how to apply these numbers. As an investor what do you want to know when someone brings a deal to the table? 

[Jeff B.]

I work the question from the other end - - the CLIENT I want to serve.  

• who are they and what to they want or need that I can supply?
• where can I find them {State, City, neighborhood}?
• what kinds of jobs to they have?
• where to they live? {SFRs, MFUs, Townhouses, Apts, High rises}

Starting from the client/customer/tenant, gives me insight as to the obvious things NOT to do, eg invest in class A gated communities when the tenant may be a blue collar worker, has a family with kids and needs easy access to shopping, schools and in Calif, access to freeways/hiways.

Of course Location and the deal get into the equation, but avoiding 'swamp land and war zones' is fundamental and a pre-requisite to either, at least for me.