Market evaluation traps are a key to uncomplicating your multifamily investing journey.
I am a market-driven investor. If the market performance past, present, and future is not growing, I will not even look at a property to purchase. You could bring me a great deal in a bad market and I would not even burn the calories to look at it. On the other hand, a great market with poor property gives the ability to maximize profit.
The following market traps are a precursor to burning those calories in the underwriting process. If you can’t check the boxes on the following data for your approval, don’t take the time to underwrite the property.
- Population Growth
- Job Growth
- Household Income
- Demographics
- Crime
- Schools
- Employment Diversification
- Emerging Growth
There are websites and paid data sources to pull this information from. Using these resources to help you evaluate a market before you even look at a property to acquire will save you countless hours of agony.
If you are looking for more information on these and other processes visit my website at MikeMorawski.com and grab a copy of my book Exit Plan.