Before moving into a new market for acquisitions and investments, our research team evaluates many factors and compiles comprehensive data. The following is just a small example of the lengths we go to in meeting this need:
Purpose; To conduct a reasonable investigation to find all the facts that would be of material interest in finding an emerging Real Estate market and thereby beat the average ROI.
What we are looking for:
#1- Job growth and employment trends. This is our number one priority because if there are no jobs, then there’s no people and if you have no people, then you have no one to rent to.
#2- Population growth trends. We are looking for monthly net in migration patterns. Typically, if our population trends are steady and increasing, then our occupancy rates should be stable as well.
#3- Local rental rates growth trends. Whenever we see rents increasing, it tells us that the demand for rentals is increasing and the supply is decreasing. This is where we want to be investing (how long have they been trending up?).
#4- New builds planned. We go to local agencies for that town and find out everything we can about local growth. We call the Economic Development Committee and find out everything that they can tell us about the growth of that town/area.
#5- Company expansions/relocations. Again, we look for this information with local govt. agencies.
#6- We look for fast growing small cities surrounded by larger cities. We are look for a small city with a population of 25K to 250K people. We research the local Wal-Mart in that small city and compare the performance to others in the area. We are looking for a busy Wal-Mart store in a small city.
#7- Determine what jobs are coming from the Economic Development Committee. We are looking for a well diversified group of jobs coming in i.e., the service sectors, healthcare, financial, business services. Manufacturing jobs are more venerable.
#8- Another sign of an emerging market is lack of available land on which to build. We get employment data from The Bureau of Labor Statistics. Find out how many jobs are coming to the area and how many came over the last few years. They also forecast the number of jobs that are likely to come over the future. We are looking to go to where the jobs are predicted to grow significantly.
#9- We contact The Economic Development Committee of the target cities. Find out what they are doing to attract new jobs and new business to the area. Look for the announcement of major new buildings or the moving of a major factory or corporate HQ to the area. We look for a local workforce that is made up of approximately 40% service sector jobs.
#10- We determine where the path of progress is in a city, this is where the majority of the new construction is taking place in a city. If our target property is in the path of progress, we may experience some major appreciation quickly.
#11- We conduct some localized research on rental trends, we call local property management firms and collect rental trend info and ask them their opinion as to where we should be looking to invest and why.
Thank you for visiting today. If this is your first visit, take your time and look around. We have plenty of information and resources available to you. If you are a return visitor, thank you. We would love to hear from you and tell you how we can serve all your real estate investment needs.