Choosing a Market?

Question

I am looking for a market in my state/city to invest in and i need a little help from you guys!

When choosing a market to invest in, what are some of the things you guys look at before starting your hunt for property in that area begins?

I notice that some of you guys may invest in atlanta then branch out to decatuer ect...

what do i need to do before or pretty much do when it comes to chossing a market in my hometown?

I always here that there a deals in your backyards, so how do i take them down!

Any suggestions!

Al Williamson · Answer

Geoffrey,
Low income areas are dear to my heart. I think they are great emerging market plays. The trick is, if you're new to inner city investing, is to wait for (are help) the community get the necessary features in place to sustain revitalization. I would suggest, those irrefutably blocks are: 1) neighborhood watch/associations, 2) a charismatic and respected grassroots mayoral figure, and 3) a few people willing to pick up litter and clean up blight.

I think Zig Ziglar said it best - you can have everything you want by helping others get what they want. And people in low income communities want things to get better.  Good luck!

Michael Quarles · Answer

First you have to determine what kind of investor you are. As a flipper who looks for equity I use the following to help.

1- Days on Market - Im always looking for the lowest days
2- High concentration of equity property - 40% or more SFR
3- High concentration of pre-foreclosures 
4- High concentration of 60-119 Mortgage Late Property
5- Areas which sells for 2/3 of city median value or less
6- Lowest number of housing per area

This data can be compiled using Trulia.com, a foreclosure data site, credit bureau and Listsource.com

It will take you a while however the numbers tell a story..

Geoffrey Murphy · Answer

AL, great idea! especially in these low income areas. These area definitely needs to be revitalized.

Should I work with a realtor? or is there a website or something that has a bunch of compiled data that i can search.

Michael made a very great point that i am implementing.

How do you go about choosing the correct area to invest in?

Geoffrey Murphy · Answer

Patrick, thanks alot!!!! Thise ideas were actually what i needed to get this thi.g moving.

Michael, you brought a lot of clarity as to things i should be looking for. Should i stay away from low income areas or ahould i focus in decent neighborhoods? Do you suggest thati work with a agent? Should i put a business plan together?

I just want to make sure i have a clear approach enough to get he ball rolling

Patrick Snyder · Answer

I would start with a bit of homework and fine out what markets/cities will give you the results you want.  If you are looking for rentals, college towns are a safe bet, as are capital cities.  For flipping or wholesaling, it may be different.  There are a lot of sites that will tell you what your market is predicted to do over the next year, so do a few searchs as well.  Hope this helps

Choosing a Market?

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