#יםמההשבוי - Gilad Oz ROInvest LLC Post 4 - Market analysis * What are the tests that must be done...
# Initiated week - Gilad Oz ROInvest LLC
Post 4 - Market Analysis
* What are the tests to do before
Buying a Real Estate Property in the US?
* State Selection -
An examination of state laws in relation to the investor
* Choice of cities -
Which cities will have employment development,
What anchors there are in or around town
That create jobs for residents.
* Selecting areas -
What are the areas we will focus on,
What are the differences between the regions,
The pros and cons of each area.
* What are real estate prices in the same area?
And where they are in relation to the price that was
Before the sub-prime crisis?
Where they are in relation to the price after
The sub-prime crisis?
When I started to engage in real estate
In Israel about 12 years ago.
Looking for real estate deals in Israel,
I would check the market prices in the tax authority,
I would come to the area every week looking for properties.
It was hard work and often discouraging.
Market analysis of each particular region in each country
It is complex and requires serious research work.
And why am I telling you this?
Because Arhav is so complex
Lots of states, cities and counties
And different neighborhoods. And you can't really compare
The market conditions between countries or between cities or
Even neighborhoods.
Per county / city / neighborhood
There are different demographics.
And they each have different market data.
When we come to analyze a real estate transaction in the US,
We need to understand the whole range of considerations.
And the data set of all:
State / County / City / Neighborhood
Before we consider choosing an investment,
we must !
First of all, you understand:
1. The laws of that country related to real estate
And are they good for us as owners.
For example: in Germany all tenants are
Tenants are protected by law. So if we want
To evict a tenant or raise him
This could be a problem.
2. I have to choose the counties (districts),
One or more, which we want to concentrate on.
What are the benefits of one district over another?
Sometimes the answer would be that taxes
In one district they are lower.
3. Wait we have to choose the cities
Which we want to concentrate on.
Does the city or its surroundings exist:
Employment centers, economic anchors like -
Factories,
Shopping centers,
university,
Hospital,
Military Base,
And more ...
4. I'll have to choose the neighborhoods
Where we want to buy property.
There are places where one neighborhood
It can be good, and a few hundred yards away
There will be a high crime neighborhood.
Not a neighborhood we would like to buy property in.
And now we've gone through all these,
Only now do we only have a basic understanding
Where would we like to look to buy a property.
And the next step in testing is
Reach the area. Anyone planning to buy
Property in the US alone
And without the support of an entrepreneur, without:
- to reach the area,
- and feel the neighborhood,
- Talk to the people.
In my opinion, make a mistake!
Because his chance of falling into a deal
Becomes bigger.
After doing extensive testing of:
The environment, demographics, and more…
Those who come to the area see that there is
A crime scene not far away.
There is a danger not far from the property.
These are the kinds of things that demographics do
We will not find out, and only a check of the area
You will find out.
And after we did all the tests
Level demographics:
State, city, neighborhood
How do we know we buy at market price?
Do we buy above / below market price?
To understand what the market price is,
You have to do some testing
Properties were sold in the same neighborhood
in the last year.
Read this review
CMA - Comparative Market Analysis
In this test, it is very important to compare
Apple to apple.
See assets with the same data.
And still an area test probably
Which will slightly change the test results
your.
Market prices today compared to the situation before
The sub-prime crisis,
why is it important ?
If we see a property that is priced
His is higher than his price before
The sub-prime crisis, that means
Which may be the property
At a price that is too high and reflects a bubble price.
And now that we've realized that we can check:
^ State Selection Considerations
^ District Selection Considerations
^ City Selection Considerations
^ Considerations in choosing a neighborhood
^ Analysis of market prices
Now we have only a clue where
We want to buy property.
The next one will be post 5 -
Demographic analysis
And the tools to do it.
See you in the next post.
Will be interesting ????
Link to the original post on Facebook - Works on a desktop computer (To view the post must be members approved for the forum)
Responses