Many newbie real estate investors who want to get into wholesaling or seasoned real estate investors looking to invest in a new real estate market look for sources that will provide details about that target investment area.
Many people will start looking at the following sources: census, building & zoning department, department of transportation, police department, board of realtors, and chamber of commerce. Essentially, these sources will help determine job growth, crime rates,appreciation, job growth, and path of development or redevelopment.
There are even quite a few websites that help with gathering and offering real estate market data such as www.trulia.com, www.realtytimes.com, www.city-data.com, www.realtor.com, and a variety of different paid online services and paid software programs.
The fact is you don’t need those services or the other resources to learn what is going on in a real estate market, because it takes a lot of time to do this research and some of the sources are not based on current information. You can keep it really simple and very accurate by doing one or both of these things to learn about your real estate market.
Here are two simple ways to know what is going on in your real estate market no matter if you are a cash buyer buying properties or a wholesaler looking to wholesale property to cash buyers.
- When you build your cash buyers list and qualify them, you will learn where the hot markets are, what the typical profit margins can be in those areas, what property types work in that area, and types of repairs needed to resale a property in that area too.
- When you have a real estate agent run a 90 day sold property report for a given area. You will want to gather the address, property characteristics, list price, sold price, CDOM, and terms. When you look at this report you will start to see market trends in these real estate market area that you target. If you do this every 90 days, you will start to see trends and identify the sweet spots in that area and the trends starting before they hit hard and are on everyone’s radar. Most real estate agents don’t even know to do this type of report to identify or stay on top oftrends in their local farm areas.
You will start to see how effective and quickly you can see trends and stay on top of them. Obviously, the other resources I mentioned can be great additional sources for information about the local real estate market, but they are not the fastest or the clearest and most complete way to gather this information. You must understand the indicators of a real estate market that is changing and what the indicators really mean and how they impacchange illicit change in a real estate market. Keep it simple and keep it accurate focusing on the 2 techniques I mentioned above and you will save a lot of time and guess work, thus reduce risk and making mistakes that could cost you time and money.