Beginner in Illinois Gaining Knowledge

[James Urycki]

I have been gaining more and more interest in the idea of investing real estate, particularly multi family properties.  I am looking to find the proper resources to answer my questions and guide me in the right direction so that I can begin a venture of investing.  Hoping bigger pockets will give me more understanding of how to make the more effective decisions in the market.

[Nick Rudolph]

Originally posted by @Mark Vejnar:

James Urycki
Welcome James!

A good appraiser is your friend - look for MAI or SRA designations or education from the appraisal institute. Appraisers are prohibited from advocating so their opinions are as objective as you can get in this highly subjective field. Read the reports and the many pages of explanations.

There are at minimum three approaches to determining value for any given piece of real estate: sales comparison, income, and cost. Sales comparison looks at competing retail sales, income evaluates the subject as an income producing property, and cost (simply put) focuses on the current cost to build/replace a property.

Marketplace inefficiencies exist for all three approaches. This is why it's important to look at many, many opportunities. Buffet advises newcomers in finance to "start with the A's". Similarly start looking at as many deals as you can. Also look at what has sold and closed in your target market in the past few years. Don't limit yourself to only residential or commercial.

Get to it and Good Luck!

 What do you mean by "start with the A's?