Real Estate Investor · Brooklyn, NY · Member since 2015 · 4 posts · 1 vote
I just got into Real Estate investing, and still looking to do my first deal. I know one of the most important things to do when entering a new market, is knowibg how to break it down and underatand the market fully. Besides driving for dollars to see whats out there, or browsing online to see what the average and median prices are... What are the other things to do, or steps to take to set yourself up for success and make sure you have a true understanding of the market.
FYI: I'm probably going to start wholsaling first because of my limited capital. Any advice you can give me here would be greatly appreciated as well. Or if you would suggest another strategy to start with, im open to suggestions. I'm early enough in my timeline where i can still set a new foundation to my investment path without ripping and replacing anything.
Thanks everyone for your help.
Lender · Hunt Valley, MD · Member since 2016 · 83 posts · 30 votes
10y
Absorption rate is huge! How fast are the properties in your particular market turning over. What amenities seem to drive prices up or down. Know those two like the back of your hand.
If you intend to wholesale you really need to know that info so you can make sure your ARV is realistic so you buy at the right price and leave room for someone who will be doing the work to make some money also.
As far as strategy there are a bunch but one I have used successfully is picking a market in transition and developing a direct mail campaign focusing on a limited area. I mail 6-7 times per year because you never know when someone is actually ready to sell. You have a much better chance of connecting with an owner if you are persistent rather then doing mass mailings hoping to hit that one owner who is ready to sell at the exact moment they received your post card. If you get 1-2 deals out of the targeted mailing area it has more then paid for itself. Then you can expand this strategy to different markets and track ROI on each individual campaign so you know your money is being spent wisely.
If you have not hooked up with an investor friendly realtor I would suggest doing so. They can help you compile market data quickly, educate you on the market and also bird dog for investments that fit your criteria. Best of luck!
Washington, DC · Member since 2015 · 22 posts · 7 votes
10y
Michael:
Look at Sunday's blog on Starting with a $1000.00 (become a pro - the best money you'll spend) and start there. BP provides the info, but you have to do the work!
You may have to go to forums and scroll through them.