Best Ways to Get to Know Your Market

[Danielle Wolter]

I am a new OOS investor looking for some good ways to get to know your market. I’ve spent time scouring through the BP forums reading everything I can about different areas. I’ve checked out crime stats, average rents and average home sale prices for different areas. I’ve also researched areas for trending markets (ie up and coming). However, without boots on the ground, I can’t be 100% sure about areas. 

I guess my question is, would you recommend flying out to visit the area, or is that an unnecessary expense. I obviously can’t fly out to check out every deal, but a one time (or even once a year) visit may be able to give me some insight. Note, I’m looking to invest in Memphis. Thanks for your thoughts!

[Damaso Bautista]

@Danielle Wolter

Hi Danielle,

I my opinion spending $350 and getting a hotel for a couple of nights is a small price to pay to do your due deligence on a market you would like to invest in.  

I would suggest doing all your leg work ahead of time.  Scheduling appointments with whoever is going to show you around (agent, local investor, turn key company) whoever it is you need to have those connections before you go.

I would also try to see if your trip could be during a strong local REI group meeting so you can get more of a feel for the market.

Make sure you know your criteria in and out that way you have a good idea about what you are looking at.  Before you land your planning should be so meticulous that what you are doing is physically confirming what you think you already know.  Once you are there you will get a good feeling for what you are looking at.  

I don't have any expertise in that market but I would do this for any OOS market that I was interested in.

Good Luck!