How to understand a market (Farm Area)

Question

Hello

I plan on moving to Boston,MA  and I would like to learn more about my market or "farm Area" as they say. How do I go about doing this, and really understanding the market and economics of Boston?

Ned Carey · Answer

I can't speak specifically to Boston but anyone can learn their market anywhere  by simply going out and looking at deals.

There is something called the "100 house rule" which says until you've looked at 100 properties you don't know your market. Go check out a variety of deals, wholesaler leads, your own marketing leads, open houses, auctions etc.  Learning your market is not done by looking at a computer screen.

Abou C. · Answer

Great idea ned.

Brian Ortins · Answer

You should attend a Black Diamond Networking event in Waltham, contact @Ann Bellamy

for more information. You will meet many investors from all areas in and around Boston. @Justin Silverio also has networking events. I also recommend contacting @Shaun Reilly

as he lives close to Boston.

I would be happy to discuss all markets North and West of Boston. As an agent and contractor, I have renovated and sold property in Boston, (Brookline specifically), but most of my business is North and West of Boston. Feel free to reach out to me with any specific questions. Good luck with the move.

Beau Blinder · Answer

Boston is unlike a lot of other real estate markets in the country in that there is a ton of demand for a relatively fixed amount of space. There is upward pressure on both rents and property prices. Boston has a huge student population and a lot of jobs in education, medicine, finance, and high tech.

I'd say it's pretty important to get a sense of the neighborhoods and towns around the Boston area. Some of them are up-and-coming, rapidly be gentrified right now. Others are already there.

Here is a great series of maps of Boston based on demographic data - http://www.bostonredevelopmentauthority.org/getatt...

Mike Hurney · Answer

@Abou There is something called the "100 house rule" which says until you've looked at 100 properties you don't know your market.

How many of the 100 have you done so far? ;-)

We just finished a Rehab in Peabody right near our Movers and Shakers meeting (tonight) if you look at the link in the signature you should be able to find it...

Justin Silverio · Answer

Thanks @Brian Ortins .

Welcome to BP @Abou C. .  I hold quarterly networking events around the Woburn area.  If you're interested in attending, shoot me a PM with your email address.  The September event will be at one of my rehabs in Stoneham so it will be a good opportunity to take a look at a finished product.

Some recommendations that I can give you is to research the demographics, job opportunities and population growth of the areas your interested in.  Then network with RE agents within those areas to get their view of the area and what buyers are looking for.  Visit lots of open houses.  Good luck!

Ann Bellamy · Answer

Thanks, @Brian Ortins and @Shaun Reilly .  You might also attend the RI group, REREIG, as I hear good things about them.  It is possible you may decide that investing in RI is of interest, or possibly in SE MA.

Boston is a pricey market to start in.  As you get further out, the prices go down, so depending on your resources, that is a consideration.  If you are simply wholesaling, that consideration is of less concern, but of course your competition increases, and the challenge of properly evaluating the construction costs.  Boston itself has requirements that increase the price of rehabbing, so you might want to visit the building department.

Shaun Reilly · Answer

Thanks for the shout our Brian.

I would take Ned's advice and just check out the area and houses in them.  At some point when you are up here just set aside a few hours to drive around and look at different areas to get a feel for the neighborhoods.  If you can arrange that to be on a Sunday then stop in various open houses to get a feel for the retail market in those areas.

You should also get out to some of the local investor meetings.  Brain is right on that if you want to invest in greater Boston that the Black Diamond meeting in Waltham is a must to get a feel for what investing activity here.  You can also go to the Boston Area REIA in Medford as that is the other one based in your farm.

Since you are in RI right now there are many meetings closer to you and will give you some exposure to other MA investors, even if they are likely working South of the city.  Their are meetings in Rockland, Taunton, Plymouth and the Cape at least.

Ben G. · Answer

Search for other BiggerPockets members in your Boston farm area and start networking with them.  I would say that would be the best way to learn:

start here

How to understand a market (Farm Area)

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