Preliminary Market Research

Deciding where one will farm his market can be approached in a myriad of ways. Presumably, where one lives in the United States usually sets the cornerstone, and the rest follows. For example, someone living in Florida may prefer to concentrate their efforts in the Southeast region of the United States, as opposed to someone in the Northwest who may find the Portland or Seattle markets more to their liking.

It could also be said that the market itself will dictate where the activity is, and as such, someone living in Iowa City may find themselves looking at markets that are far removed from where they live. Many speculators, investors, and flippers will literally travel to the ends of the earth to penetrate a market to initiate flip candidate opportunities. You might call these people equal-opportunity flippers.

Being a plane ride away is no obstacle for a truly dedicated investor who enjoys the hunt as much as the chase. In terms of preliminary market research, I recommend focusing on markets that offer the most apparent upside as deemed by bona fide news accounts and real estate data. As a web source, try HomeBuilder. com and to start out.

Both of these sites will give you access to all fifty states and developer activity in those respective areas in terms of specific builders, sites, locations, and cities, and what type of homes and how many homes they are building, and the prices. You should also utilize the myriad of Web sites that offer for free in some cases, lists of preconstruction opportunities in various parts of the country. Just type the key words into a search engine, and off you go. In terms of a fee-based membership, don’t shun those services too quickly. Organizations like NREIA (National Real Estate Investment Association) and REIClub (Real Estate Investment Club) are well worth the nominal sign-up fee. I can’t understate the importance of leads, leads, leads! This will be the lifeblood of your business, and fortunately, the latter organizations and sites just mentioned will give you a start in the right direction. Do be aware, however, that not all preconstruction leads are created equal.

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