The Top Real Estate Investment Tools
The top real estate investment tools for finding the best cash flow and growth properties are not something that investors usually share with each other (or actually anyone)! Wow: I do not believe I am writing this blog post on my resources. My fellow promoters are going to think I am crazy. Maybe I am crazy but I like to think I have an abundant mind and when I share great things with people, people will in turn share great things with me and together everyone learns more.
I spent years uncovering this information and I do not believe I AM ACTUALLY PUBLISHING THIS INFORMATION ON A FREE BLOG POST!
O.K., I have left many blog posts on analyzing the investment property itself and I provided the infamous IDEAL calculator to help you do so. Today let’s look into where those properties should be purchased and how to find them. You will want to ask of virtually every property: job growth, job diversity, Baby Boomer appeal, cash flow, home appreciation values, and so on, is it sustainable?
There is much diligence involved to assure you can get all the attributes covered within a market (actually the truth is there is no one market in existence that has every attribute in perfect alignment within a city). There are however always markets that are better positioned to provide you with sustainable cash flow and or sustainable growth than other markets. To succeed today in your investment it must pass the sustainability questions. So with all the resources available let’s get started.
Invest in markets that are poised for growth. Population growth, job growth, markets that have growing populations with great job diversity is key to a sustained growth. There are a number of sources for this but I believe the best is The U.S census bureau: www.BLS.Gov
Invest in markets that are undervalued. These are markets where the cost of ownership based on the markets median home price is equal to or less than 35% of the median income. The accepted standard is that about 35% of your gross income should go for housing expense. Again a number of sources for this: John Burns Real Estate Consulting and City data.
Invest in markets that have Baby Boomer appeal. Baby Boomers are in their peak earning years and the locations they choose to settle bring great financial prosperity. Hint, think warm climates: a good resource is IBIS WORLD and of course You Tube can give you good pointers as well.
Invest in markets with strong local economies. Many cities have 5, 10 and 20 year vision plans to create and continue economic growth. These areas make the best investments. Think with the big picture in mind. What do these cities need to grow? Roads! you can check with the Dept of transportation (DOT) for each city. These organizations spend a fortune doing their advance diligence before building a new road. They build roads where growth happens so check the websites of the DOT.
The best information that we seek as investors comes from many sources. Understanding what makes an investment sustainable will lead you to wanting lots of information so you can feel confident your investments will be profitable long term. These sustainable markets are what I call emerging markets.
Here are a number of other sources I use regularly for finding the best cash flow and growth markets
National and local Real Estate statistics:
Cost of living for local, national and international living costs and conditions:
Rental rates and rental information
1031 tax deferred exchanges and legal issues
General fundamental analysis of markets
Media outlets can be a great source for current events within a city: (I love to use these sources as a tool to give me general knowledge, understanding of course you will want to do a more in-depth diligence on the fundamentals of the markets)
International news and real estate opportunities
Commercial real estate fundamentals:
Building trends and Buyers buying habits:
As you can see I use many resources, I also visit local Chambers of Commerce within each city as well, as there is a wealth of local knowledge you can gain from them. Talking to local Realtors can also be helpful from a local statistic standpoint.
OK, so you have done your diligence now what? Do you know that the best turnkey properties are never listed on the MLS? In short, you can find unlisted properties only with investment promoters!