I really want to know how to perform market analysis?

12 Replies

I really want to know how to analyze a market or neighbourhood in which I'm investing, I'v talked with a lot of people about how to analyze a housing market but I still didn't really understand so I thought this place would be the best option to find. I just want to know how to analyze like how to find out if the demand is high, how do you know if homes are selling fast, how to find out if demand for property in any area rising or falling or how to find out if a neighbourhood is hot or not, I've discussed with a lot of people and they recommend me to use city-data.com which is an excellent website to know about the market but even in that website I don't know what to look for like if the population is 20000 in a city is it good or not or what it should be or what should I type in google to know about a specific market or place?

Originally posted by @Jasraj Singh :

I really want to know how to analyze a market or neighbourhood in which I'm investing, I'v talked with a lot of people about how to analyze a housing market but I still didn't really understand so I thought this place would be the best option to find. I just want to know how to analyze like how to find out if the demand is high, how do you know if homes are selling fast, how to find out if demand for property in any area rising or falling or how to find out if a neighbourhood is hot or not, I've discussed with a lot of people and they recommend me to use city-data.com which is an excellent website to know about the market but even in that website I don't know what to look for like if the population is 20000 in a city is it good or not or what it should be or what should I type in google to know about a specific market or place?

It depends on what kind of investing you want do. You have choices of single family rentals, short term rentals, vacation rentals, lease options, commercial, townhouses, high end rentals, low end rentals, rehabs, duplexes, fourplexes, apartments.

Give a little more information of what your ideal investment is and we can offer some guidance.

Originally posted by @John Farady :
Originally posted by @Jasraj Singh:

I really want to know how to analyze a market or neighbourhood in which I'm investing, I'v talked with a lot of people about how to analyze a housing market but I still didn't really understand so I thought this place would be the best option to find. I just want to know how to analyze like how to find out if the demand is high, how do you know if homes are selling fast, how to find out if demand for property in any area rising or falling or how to find out if a neighbourhood is hot or not, I've discussed with a lot of people and they recommend me to use city-data.com which is an excellent website to know about the market but even in that website I don't know what to look for like if the population is 20000 in a city is it good or not or what it should be or what should I type in google to know about a specific market or place?

 It depends on what kind of investing you want do. You have choices of single family rentals, short term rentals, vacation rentals, lease options, commercial, townhouses, high end rentals, low end rentals, rehabs, duplexes, fourplexes, apartments.

Give a little more information of what your ideal investment is and we can offer some guidance.

Thanks a lot for responding! 

Sure! I am looking for a duplex and then I want to renovate it and sell it for a profit and for even better profit I'll put some tenants and then sell but mainly I wanna start with flipping.

 

Originally posted by @Jasraj Singh :
Originally posted by @John Farady:
Originally posted by @Jasraj Singh:

I really want to know how to analyze a market or neighbourhood in which I'm investing, I'v talked with a lot of people about how to analyze a housing market but I still didn't really understand so I thought this place would be the best option to find. I just want to know how to analyze like how to find out if the demand is high, how do you know if homes are selling fast, how to find out if demand for property in any area rising or falling or how to find out if a neighbourhood is hot or not, I've discussed with a lot of people and they recommend me to use city-data.com which is an excellent website to know about the market but even in that website I don't know what to look for like if the population is 20000 in a city is it good or not or what it should be or what should I type in google to know about a specific market or place?

 It depends on what kind of investing you want do. You have choices of single family rentals, short term rentals, vacation rentals, lease options, commercial, townhouses, high end rentals, low end rentals, rehabs, duplexes, fourplexes, apartments.

Give a little more information of what your ideal investment is and we can offer some guidance.

Thanks a lot for responding! 

Sure! I am looking for a duplex and then I want to renovate it and sell it for a profit and for even better profit I'll put some tenants and then sell but mainly I wanna start with flipping.


Okay, now we're getting somewhere. Flipping is best done within a 30 minute drive of your home. It requires time and attention if you want it to be profitable. You have to have contractors if you aren't handy with a hammer, you need to buy well below what you will sell it for, you have to be able to accurately estimate what it will eventually sell for, you have to consider acquisition costs, rehab costs, carrying costs, selling costs, prepare for 6 months on average from start to finish, you need to know about title reports, appraisals, escrow, lenders, insurance, sequence of rehab lists, "oops" surprises, market changes, level of finish, what other rehabbers are using for materials, and realize that contractors don't always show up or finish what they start. Then you begin your search for the perfect duplex to rehab and sell. If you are going to have tenants you need to know landlord tenant law for the area you are investing in. All of that is learnable. Now, do you have an amount in mind that you would like to make on this project? I might be able to fill in the gaps so you can start looking for the ideal project.

 

Originally posted by @John Farady :
Originally posted by @Jasraj Singh:
Originally posted by @John Farady:
Originally posted by @Jasraj Singh:

I really want to know how to analyze a market or neighbourhood in which I'm investing, I'v talked with a lot of people about how to analyze a housing market but I still didn't really understand so I thought this place would be the best option to find. I just want to know how to analyze like how to find out if the demand is high, how do you know if homes are selling fast, how to find out if demand for property in any area rising or falling or how to find out if a neighbourhood is hot or not, I've discussed with a lot of people and they recommend me to use city-data.com which is an excellent website to know about the market but even in that website I don't know what to look for like if the population is 20000 in a city is it good or not or what it should be or what should I type in google to know about a specific market or place?

 It depends on what kind of investing you want do. You have choices of single family rentals, short term rentals, vacation rentals, lease options, commercial, townhouses, high end rentals, low end rentals, rehabs, duplexes, fourplexes, apartments.

Give a little more information of what your ideal investment is and we can offer some guidance.

Thanks a lot for responding! 

Sure! I am looking for a duplex and then I want to renovate it and sell it for a profit and for even better profit I'll put some tenants and then sell but mainly I wanna start with flipping.


Okay, now we're getting somewhere. Flipping is best done within a 30 minute drive of your home. It requires time and attention if you want it to be profitable. You have to have contractors if you aren't handy with a hammer, you need to buy well below what you will sell it for, you have to be able to accurately estimate what it will eventually sell for, you have to consider acquisition costs, rehab costs, carrying costs, selling costs, prepare for 6 months on average from start to finish, you need to know about title reports, appraisals, escrow, lenders, insurance, sequence of rehab lists, "oops" surprises, market changes, level of finish, what other rehabbers are using for materials, and realize that contractors don't always show up or finish what they start. Then you begin your search for the perfect duplex to rehab and sell. If you are going to have tenants you need to know landlord tenant law for the area you are investing in. All of that is learnable. Now, do you have an amount in mind that youould like to make on this project? I might be able to fill in the gaps so you can start looking for the ideal project.

 

Just saw your message.

Thanks a lot for responding!! this is very helpful! I really appreciate it! but how do you get to know about the landlord tenant law for the area? Yes I currently have $100000-130000 that I can spend.

 

Originally posted by @Jasraj Singh :
Originally posted by @John Farady:
Originally posted by @Jasraj Singh:
Originally posted by @John Farady:
Originally posted by @Jasraj Singh:

I really want to know how to analyze a market or neighbourhood in which I'm investing, I'v talked with a lot of people about how to analyze a housing market but I still didn't really understand so I thought this place would be the best option to find. I just want to know how to analyze like how to find out if the demand is high, how do you know if homes are selling fast, how to find out if demand for property in any area rising or falling or how to find out if a neighbourhood is hot or not, I've discussed with a lot of people and they recommend me to use city-data.com which is an excellent website to know about the market but even in that website I don't know what to look for like if the population is 20000 in a city is it good or not or what it should be or what should I type in google to know about a specific market or place?

 It depends on what kind of investing you want do. You have choices of single family rentals, short term rentals, vacation rentals, lease options, commercial, townhouses, high end rentals, low end rentals, rehabs, duplexes, fourplexes, apartments.

Give a little more information of what your ideal investment is and we can offer some guidance.

Thanks a lot for responding! 

Sure! I am looking for a duplex and then I want to renovate it and sell it for a profit and for even better profit I'll put some tenants and then sell but mainly I wanna start with flipping.


Okay, now we're getting somewhere. Flipping is best done within a 30 minute drive of your home. It requires time and attention if you want it to be profitable. You have to have contractors if you aren't handy with a hammer, you need to buy well below what you will sell it for, you have to be able to accurately estimate what it will eventually sell for, you have to consider acquisition costs, rehab costs, carrying costs, selling costs, prepare for 6 months on average from start to finish, you need to know about title reports, appraisals, escrow, lenders, insurance, sequence of rehab lists, "oops" surprises, market changes, level of finish, what other rehabbers are using for materials, and realize that contractors don't always show up or finish what they start. Then you begin your search for the perfect duplex to rehab and sell. If you are going to have tenants you need to know landlord tenant law for the area you are investing in. All of that is learnable. Now, do you have an amount in mind that youould like to make on this project? I might be able to fill in the gaps so you can start looking for the ideal project.

 

Just saw your message.

Thanks a lot for responding!! this is very helpful! I really appreciate it! but how do you get to know about the landlord tenant law for the area? Yes I currently have $100000-130000 that I can spend. 

Actually, what I was interested in knowing is how much would you like to MAKE from your project? We work backwards using that number to determine how much you need to have and how much of a house you need to buy.

 

Originally posted by @John Farady :
Originally posted by @Jasraj Singh:
Originally posted by @John Farady:
Originally posted by @Jasraj Singh:
Originally posted by @John Farady:
Originally posted by @Jasraj Singh:

I really want to know how to analyze a market or neighbourhood in which I'm investing, I'v talked with a lot of people about how to analyze a housing market but I still didn't really understand so I thought this place would be the best option to find. I just want to know how to analyze like how to find out if the demand is high, how do you know if homes are selling fast, how to find out if demand for property in any area rising or falling or how to find out if a neighbourhood is hot or not, I've discussed with a lot of people and they recommend me to use city-data.com which is an excellent website to know about the market but even in that website I don't know what to look for like if the population is 20000 in a city is it good or not or what it should be or what should I type in google to know about a specific market or place?

 It depends on what kind of investing you want do. You have choices of single family rentals, short term rentals, vacation rentals, lease options, commercial, townhouses, high end rentals, low end rentals, rehabs, duplexes, fourplexes, apartments.

Give a little more information of what your ideal investment is and we can offer some guidance.

Thanks a lot for responding! 

Sure! I am looking for a duplex and then I want to renovate it and sell it for a profit and for even better profit I'll put some tenants and then sell but mainly I wanna start with flipping.


Okay, now we're getting somewhere. Flipping is best done within a 30 minute drive of your home. It requires time and attention if you want it to be profitable. You have to have contractors if you aren't handy with a hammer, you need to buy well below what you will sell it for, you have to be able to accurately estimate what it will eventually sell for, you have to consider acquisition costs, rehab costs, carrying costs, selling costs, prepare for 6 months on average from start to finish, you need to know about title reports, appraisals, escrow, lenders, insurance, sequence of rehab lists, "oops" surprises, market changes, level of finish, what other rehabbers are using for materials, and realize that contractors don't always show up or finish what they start. Then you begin your search for the perfect duplex to rehab and sell. If you are going to have tenants you need to know landlord tenant law for the area you are investing in. All of that is learnable. Now, do you have an amount in mind that youould like to make on this project? I might be able to fill in the gaps so you can start looking for the ideal project.

 

Just saw your message.

Thanks a lot for responding!! this is very helpful! I really appreciate it! but how do you get to know about the landlord tenant law for the area? Yes I currently have $100000-130000 that I can spend. 

Actually, what I was interested in knowing is how much would you like to MAKE from your project? We work backwards using that number to determine how much you need to have and how much of a house you need to buy.

 

Okay! alright! I would prefer a property with 15-20% cash on cash return. That I think would be better cause after renovating and getting new tenants I'll sell the property within 1-2 years and in those 1-2 years I would like to get 35-40% of my money back that I've invested in the property plus the profit from selling. Do you have any suggestions?

Originally posted by @Jasraj Singh :
Originally posted by @John Farady:
Originally posted by @Jasraj Singh:
Originally posted by @John Farady:
Originally posted by @Jasraj Singh:
Originally posted by @John Farady:
Originally posted by @Jasraj Singh:

I really want to know how to analyze a market or neighbourhood in which I'm investing, I'v talked with a lot of people about how to analyze a housing market but I still didn't really understand so I thought this place would be the best option to find. I just want to know how to analyze like how to find out if the demand is high, how do you know if homes are selling fast, how to find out if demand for property in any area rising or falling or how to find out if a neighbourhood is hot or not, I've discussed with a lot of people and they recommend me to use city-data.com which is an excellent website to know about the market but even in that website I don't know what to look for like if the population is 20000 in a city is it good or not or what it should be or what should I type in google to know about a specific market or place?

 It depends on what kind of investing you want do. You have choices of single family rentals, short term rentals, vacation rentals, lease options, commercial, townhouses, high end rentals, low end rentals, rehabs, duplexes, fourplexes, apartments.

Give a little more information of what your ideal investment is and we can offer some guidance.

Thanks a lot for responding! 

Sure! I am looking for a duplex and then I want to renovate it and sell it for a profit and for even better profit I'll put some tenants and then sell but mainly I wanna start with flipping.


Okay, now we're getting somewhere. Flipping is best done within a 30 minute drive of your home. It requires time and attention if you want it to be profitable. You have to have contractors if you aren't handy with a hammer, you need to buy well below what you will sell it for, you have to be able to accurately estimate what it will eventually sell for, you have to consider acquisition costs, rehab costs, carrying costs, selling costs, prepare for 6 months on average from start to finish, you need to know about title reports, appraisals, escrow, lenders, insurance, sequence of rehab lists, "oops" surprises, market changes, level of finish, what other rehabbers are using for materials, and realize that contractors don't always show up or finish what they start. Then you begin your search for the perfect duplex to rehab and sell. If you are going to have tenants you need to know landlord tenant law for the area you are investing in. All of that is learnable. Now, do you have an amount in mind that youould like to make on this project? I might be able to fill in the gaps so you can start looking for the ideal project.

 

Just saw your message.

Thanks a lot for responding!! this is very helpful! I really appreciate it! but how do you get to know about the landlord tenant law for the area? Yes I currently have $100000-130000 that I can spend. 

Actually, what I was interested in knowing is how much would you like to MAKE from your project? We work backwards using that number to determine how much you need to have and how much of a house you need to buy.

 

Okay! alright! I would prefer a property with 15-20% cash on cash return. That I think would be better cause after renovating and getting new tenants I'll sell the property within 1-2 years and in those 1-2 years I would like to get 35-40% of my money back that I've invested in the property plus the profit from selling. Do you have any suggestions?

Well, you could be a hard money lender and get 15% more safely than doing a fix & flip.

Or you could use this technique  https://www.biggerpockets.com/...

Or maybe this https://www.biggerpockets.com/...

Originally posted by @John Farady :
Originally posted by @Jasraj Singh:
Originally posted by @John Farady:
Originally posted by @Jasraj Singh:
Originally posted by @John Farady:
Originally posted by @Jasraj Singh:
Originally posted by @John Farady:
Originally posted by @Jasraj Singh:

I really want to know how to analyze a market or neighbourhood in which I'm investing, I'v talked with a lot of people about how to analyze a housing market but I still didn't really understand so I thought this place would be the best option to find. I just want to know how to analyze like how to find out if the demand is high, how do you know if homes are selling fast, how to find out if demand for property in any area rising or falling or how to find out if a neighbourhood is hot or not, I've discussed with a lot of people and they recommend me to use city-data.com which is an excellent website to know about the market but even in that website I don't know what to look for like if the population is 20000 in a city is it good or not or what it should be or what should I type in google to know about a specific market or place?

 It depends on what kind of investing you want do. You have choices of single family rentals, short term rentals, vacation rentals, lease options, commercial, townhouses, high end rentals, low end rentals, rehabs, duplexes, fourplexes, apartments.

Give a little more information of what your ideal investment is and we can offer some guidance.

Thanks a lot for responding! 

Sure! I am looking for a duplex and then I want to renovate it and sell it for a profit and for even better profit I'll put some tenants and then sell but mainly I wanna start with flipping.


Okay, now we're getting somewhere. Flipping is best done within a 30 minute drive of your home. It requires time and attention if you want it to be profitable. You have to have contractors if you aren't handy with a hammer, you need to buy well below what you will sell it for, you have to be able to accurately estimate what it will eventually sell for, you have to consider acquisition costs, rehab costs, carrying costs, selling costs, prepare for 6 months on average from start to finish, you need to know about title reports, appraisals, escrow, lenders, insurance, sequence of rehab lists, "oops" surprises, market changes, level of finish, what other rehabbers are using for materials, and realize that contractors don't always show up or finish what they start. Then you begin your search for the perfect duplex to rehab and sell. If you are going to have tenants you need to know landlord tenant law for the area you are investing in. All of that is learnable. Now, do you have an amount in mind that youould like to make on this project? I might be able to fill in the gaps so you can start looking for the ideal project.

 

Just saw your message.

Thanks a lot for responding!! this is very helpful! I really appreciate it! but how do you get to know about the landlord tenant law for the area? Yes I currently have $100000-130000 that I can spend. 

Actually, what I was interested in knowing is how much would you like to MAKE from your project? We work backwards using that number to determine how much you need to have and how much of a house you need to buy.

 

Okay! alright! I would prefer a property with 15-20% cash on cash return. That I think would be better cause after renovating and getting new tenants I'll sell the property within 1-2 years and in those 1-2 years I would like to get 35-40% of my money back that I've invested in the property plus the profit from selling. Do you have any suggestions?

Well, you could be a hard money lender and get 15% more safely than doing a fix & flip.

Or you could use this technique  https://www.biggerpockets.com/...

Or maybe this https://www.biggerpockets.com/...

 Alright! so what's the issue? like is it difficult to get 20% cash on cash a year? 

@Jasraj Singh

You can get 20% cash on cash.  You can get 50%.  You can get infinite, no cash in the deal at all.  You can also go bust.  

It depends on the individual deal, the market you're in, your experience, your ability to add sweat equity...


Originally posted by @Barb Asay :

@Jasraj Singh

You can get 20% cash on cash.  You can get 50%.  You can get infinite, no cash in the deal at all.  You can also go bust.  

It depends on the individual deal, the market you’re in, your experience, your ability to add sweat equity...

Alright!Thanks a lot for responding man!

 Really appreciate it!

John Farady, how does one become a hard money lender? I have $100K and had been planning on trying a BRRRR strategy, but lending to someone else is intriguing. We live in Dallas, TX, by the way.