Module 3 - Investment Market Selection

Lesson 3 of 20
in process

Module 3 - Investment Market Selection

Yaniv Berliner September 20, 2020

Cold market versus hot market

We will go over the characteristics of each of the markets, such as: shelf time (DAYS on market), number of bids on each property (multiple offers), is a low bid more likely to be accepted in a hot market or a cold market ?, price increases.
The decision to work in a hot or cold market will ultimately determine how many offers on different properties we will bid until our offer is accepted, how long it will take for us to find the right deal for us, whether we will have the time or ability to make inquiries about the same asset, etc.
When it comes to choosing a city to invest in the United States - There are some parameters we need to know: population size, city migration, unemployment level, tenant laws in the same state (are the laws in favor of the tenant or landlord and why is it important?), Does our purchase budget fit the same city (for example - if the investment budget is 100 Dollars, it is not worth working in a city where there are a total of 5-10 properties in the range of 100 for sale).
Another thing to consider - the height of property taxes (which the landlord pays in the United States), there are very high property taxes, and there are some relatively low property taxes.
In addition, choosing the city should also be in line with our investment strategy - for new construction and real estate investment, we may have to choose different markets (but certainly also in the same market).

X
X
X