How to learn your market.

[Jonathan W Dowling]

I keep hearing I need to know my Market. What does this mean? Is it knowing what housing and rental prices are. Should  I be going to city council meetings.......etc.???? 

[Ned Carey]

@Jonathan W Dowling I once heard the 100 house rule "Until you have looked at 100 houses you don't know your market"

What I tel people is go out and look at lots of deals. All kinds of deals, listed properties, FSBO, your own marketing, deal from wholesalers, open houses etc.

Many areas have pubic auctions. Not just courthouse step foreclosure auctions but on site actions where you can go inside, and inspect the house before the auction. This is a great way to learn. Walk though do your own evaluation then when it is over ask some other bidders what their thinking was. "What would it sell for when renovated?"  Or "what would it rent for?'  How much would the renovations cost, etc? 

Also any time you get the chance to visit another investor's deal do it and ask every question about the deal you can think of. 

Another Level.

There is another level of knowing your market or a potential market to invest in. That is what are the prospects for the growth in the economy. Number one is jobs. Are new jobs coming? Jobs mean population growth. Population growth means higher demand, higher demand means higher prices and rents in the future. 

This type of analysis comes from yes city council meetings, or talking to the chamber of commerce. Is the area pro growth and pro business? Are new companies coming to the area or are major employers set to leave? What is happening in terms of building permits? There are lots of areas to research for this kind of analysis.

[Jonathan W Dowling]

@Ned Carey thanks for the info, I’ve got a lot of homework to do

[Ned Carey]

@Jonathan W Dowling yes you do but it will  make you a better and more profitable investor.

[Jonathan W Dowling]

@Ned Carey off to the races I go.

[Steve Sherman]

@Jonathan W Dowling You want to look at population growth, quality of schools, unemployment rate and crime rates. A lot cities are patchy, meaning an A class block is a few blocks away from some really bad blocks with gun shots and murders. If you are looking to buy properties in such markets, make sure you acquaint yourself with that particular area, driving around daytime and at night to make sure nothing bad is goimg on there. I also like to stop by a local mom and pop store or restaurant in potential invesment areas and ask around how they feel about the neighborhood.

[Jonathan W Dowling]

@Steve Sherman appreciate the input. I’ll definitely take it to hart. 

[Account Closed]

@Jonathan W Dowling google your city for new business growth; new apartments; new shopping centers; new sub division; etc.... You could also just drive around your city. Most Georgia counties have an online building permit website check that out also.

[Lindel Turner]

@Jonathan W Dowling Our state college has free demographic studies available thru marketing department. You might try your area college or chamber of commerce. I tell people it’s like shopping for a couch or a car. You look and look and look. In and out of several stores. The. You walk in and there it is. Priced right and what you expected. You won’t be able to write the offer fast enough.

[Jonathan W Dowling]

@Lindsay Tucker Thanks for that info, had no idea that could be a sours of info. Thanks a bunch. 

[Corby Goade]

Great advice from Ned above. There's a lot to learn, but it doesn't have to be difficult. Check out the new listings on the MLS every day. Follow up to see how much properties are actually selling for and how long they are sitting on the market. Your local Realtor's association should be publishing those stats monthly, they're probably on their website or you can call and get them.

Same thing for rental properties- there should be a local NARPM affiliate, they will publish local rents, averages and vacancy, which should give you an idea of the rental market. Usually these stats for avg rents can be broken down by rent cost per bedroom in any market, and you can use that number as a guideline. 

If you are remotely ready to buy, find an investor friendly realtor who will help guide you. They're out there, but it might take some time. Every realtor says they are investment experts, but not many actually are. 

The tools and info are out there, don't be overwhelmed, just take it one step at a time. 

[Jonathan W Dowling]

@Corby Goade Thanks for the advice I'll start looking at the MLS daily. At least the parts I can see.