How is identifying the right market critical to the success of any multifamily real estate investment?
Watch this quick and simple video to learn some key factors that will help you to identify a great market for your investment! Make sure to hit the subscribe button to stay up to date on some incredibly valuable content coming WEEKLY!
Video Transcription
Meet Taylor!
Taylor wants to invest in multifamily!
Taylor has been analyzing different markets with different sponsor groups….. BUT there are so many deals in a variety of different markets that she feels overwhelmed!
Taylor wants to find out what makes a market a good for investment? One of the sponsors she is working with, Sam, tells her key factors in identifying good markets for investment…..
Sam explains these factors will be related to the property’s location, some will be tied to job and population growth, while others are related to crime in the area!
Sam describes that all of these factors are important, and the better the population and job growth are, the lower the crime and the better school district a property is in!
….Equating to a higher median income, which helps rent growth and demand for quality housing!!
Sam explains that a property in a rising market could be an amazing value-add opportunity!
If a sponsor is a able to purchase a value add property this would allow the sponsor to come in….update the property…. Which leads to higher rents, more profitability, and ultimately a higher value of the property over time!!
Sam tells taylor that this is why location is VERY important.
Taylor is excited to have a better understanding of what makes a market a good opportunity for investment!!