Looking to Invest: Know your Market
In our recent article “Succeeding as a REAL ESTATE Investor” you learned a little about becoming an Investor in addition to being a Real Estate Agent. Let’s talk a little about one of the important aspects of becoming a Successful Investor in today’s market that is always changing.
You must KNOW your MARKET.
What does this even look like and how do you develop an accurate accounting of what is working and what isn’t? Where do you begin?
Research, Research, Research
We gathered valuable Real Estate and Investor information from Dave Ramsey and one of our Investors Cameron Ruschhaupt. It’s time to learn!
- What is selling in your area? How long are properties on the market? What are the buyer’s wanting in their new homes AND what are sellers willing to do to match this?
- Who is buying the homes? Millennial’s want something very different than buyers from previous generations – interested in learning more? Read our article “Positioning Your Home For The Right Buyer”.
- Know what key Trends are in your local area for Real Estate, Architecture, and Design
- Knowledge is Power – Interview other Investors, Real Estate Agents, Designers, Builders…everybody. What are they seeing in styles, pricing, buyers vs. sellers behavior for their investment properties?
- Speak with local Mortgage Brokers. What are the Mortgage Interest Rates doing? What has been the trend and is it expected to change?
- Once you have selected a property it is imperative that you do your due diligence: check comps and complete inspections.
- What is your ARV–After Repair Value?
- Create an “extremely detailed budget”–and stick to it!
Investor Pro, Cameron, goes a step further to share a few personal Pro’s & Con’s. He pursues investing because it gives him another way to provide for his family. He owns his own business. His passion for Real Estate keeps him researching the market and trends so that he is “proactive rather than reactive”. This keeps him steps ahead of the average investor. He does warn that there are ”LOTS of risks” and it is time consuming.
What this comes down to is a love for the Real Estate market and it’s good and bad aspects. Research, get counsel, and make wise decisions and this will be a life changing career move.
Need a Quote on a Professional Home Stage just Click Here! There’s Good News, we can help!