Where do you shop? Why? Do you have favorite department stores, grocery stores and online stores? What makes them your go-to markets? Great markets offer convenience, value and quality. Look at the biggest retailers on the market, for examples. Nordstrom offers top notch quality and the convenience of top notch customer service; meanwhile, Walmart offers unbeatable values coupled with the convenience of being able to purchase everything from milk to a television under one roof. Great markets offer great perks. What perks do your favorite markets offer you?
When it comes to investing real estate, where you shop matters. There’s a whole bunch of markets out there – both in the country and out. Some great markets might be in your back yard, and some might be across the continent. Knowing where to buy your real estate is as important as knowing how to. Check out our top tips for finding a market that gives you the value, quality and convenience your portfolio deserves!
Invest in Markets Offering Value
Value? What is value, exactly? Value is the relative worth of an item. Value can increase or decrease over time. When it comes to buying real estate, value is particularly important. Why? Real estate is something you hold on to over time (unless you’re a flipper, but that’s a whole different beast). The value of your property appreciates, or depreciates, over time. To be successful in your investments, it’s key that you find properties that come with a great value. The market where you shop largely determines the value you get out of an investment. Look for markets that are priced lower than they should be. Look for markets poised to bounce back and up. Look for markets with strong fundamentals and bright futures – so that you know your property will appreciate in value.
Invest in Markets Offering Quality
Quality is how much value you get for your money. No point in buying something for a low price that just falls apart the next day, right? Some markets offer more quality than others. What makes a market quality? The availability of and appeal to tenants is a key factor. Quality markets have universities, colleges, major employers, access to major transportation, good schools and a large percentage of renters. They may not have all of these hallmarks of quality but they are going to have at least a few.
Invest in Markets Offering Convenience
Would you really go to a market that offered great value and quality if it didn’t also offer parking spaces, shopping bags, cashiers and a clean shopping environment. Maybe – but probably not. When you’re investing in real estate, it’s important to find markets that are convenient for you. Why? If you end up in one of those markets that doesn’t offer much in the way of convenience, you could end up spending precious time and money keeping your property chugging along. Look for a market that comes with great turnkey suppliers whose work you trust and for markets that have rock star property management teams (and great vendor connections). When you shop for real estate in a convenient market, you end up with investments that you can manage easily. Think about it this way: its like trying to carry your groceries in your arms or carrying them in a shopping bag. No brainer, right?
Key Takeaway: Just as in your day to day life, where you shop for real estate really matters. Find reliable stores – and markets – that give you the quality, convenience and value you need to be as successful as you want to be. Don’t end up with a property that loses value, can’t attract tenants – or runs you ragged. Connect with reliable sellers in reliable markets so that your ROI’s are reliable, too.