As you know markets change as time goes by. Once you have found the best markets to invest in there is still one more thing you should definitely be looking for before looking at the actual property. This of course is identifying where within this market is the “path of progress.” This translates differently for a home buyer than it does for an investor. I believe the translation for investor is the best market for your investment, the path of progress, then the sweet spot of the market
The path of progress:
If you are searching an emerging market to invest in, that market will indeed have a path of progress, a direction that the city is growing. This is an area that commercial businesses start to build on which in turn has job creation. As these businesses build up the local strip mall builders and gas stations start to come in. The residential builders follow and before you know it the city is growing in this direction. People of course desire to live near their work so they start buying these newer homes and thus the path of progress is identified. As humans we tend to follow the thundering heard. We like to be in the latest and greatest areas. It is in these areas, the path of progress, that will offer the most sustainable investments.
Follow the seven economic signs to the path of progress
- Start with the headlines: Such as Home Depot is coming to… or a 200 unit apartment complex to be built at, etc.
- Attend zoning and planning meetings: Learn about number one above before everyone else does
- D.O.T: The department of transportation can give you huge boost into what the future holds. When you see new roads being built you can rest assured they did studies to know the traffic is going to be growing in this area, the rest of the diligence will easily fall into place.
- Read the recent closing section of the newspapers: See who is buying land. When a major commercial player such as Home Depot buys land it is time to take notice.
- Talk to commercial and residential realtors: When talking with a seasoned real estate professional they will typically have most all this insight to an area
- Talk to the locals: I have learned much about a city by talking with waitresses, cab drivers, etc. they live and work these areas daily and they are always talking to people.
- Personal visit: Of course there is nothing more powerful than driving around an area and getting a personal view of what is going on.
As you uncover the best and most sustainable investing market location and then find the path of progress , there is just one more piece of the diligence before proceeding to finding the best property and that is the sweet spot.
Next post will be finding the Sweet spot to invest in.