What does it take to know a market?

6 Replies

Since I invest remotely, I need to answer the question: who is on the ground that will give you feedback about neighborhoods and about the property's condition?

@Michael Ohara

@Joe Villeneuve

Hey guys, thanks for the input! I believe a great investor could probably answer some key questions when it comes to their specific market. These key questions provide the foundation for their investment decisions. I considered the following as the some of the key questions:

1. What properties are in highest demand? (San Antonio TX : 3/2/2 1,500 - 2,000 sqft and priced between 150K to 200K)

2. Is the population growing or shrinking? (San Antonio is projected to grow consistently over next 10 years)

Keep in mind my perspective is from a residential real estate view. I know there is more key questions to understand. Thanks for adding a few more to the list.

Great question, I am a newbie but now I do pay much more attention to school districts, major employers, trends in the area, development and much much more. Being born and raised in SA helps a ton too but each day trying to learn more about my side of town as well as the areas I grew up plus areas I am interested in investing. Looking forward to the responses. 

Population trends, vacancy rate, insulated to recession or not, what areas are what class.. I'd honestly just talk to an expert. If someone knows investments, is making money and is knowledgable about a market.. I'd ask them these things and then let them teach me!

@David Mares I like your suggestion of major employers and trends in the area. Bigger cities have a lot of different niches so knowing the different neighborhoods could help you understand the area demographics for potential buyers/renters. 

Knowing that would be useful for price point and what amenities people are looking for. Don't want to over improve.