If you’ve caught the real estate investing bug, one burning question may be, “How can I find the top real estate markets?” Well-prepared investors are constantly following up on tips, searching the Internet, checking the Wall Street Journal and other publications, and following their instincts to evaluate areas of interest and investment potential. For a novice, this process can seem intimidating and a bit overwhelming.
Start with What You Know
Our suggestion is to set realistic expectations–start small and grow from there. It is unrealistic for you to expect to jump into a half-million dollar venture and make several hundred thousand dollars of profit on your first deal. Start slow and build your skills while you get your feet wet and continue to increase your knowledge. Real estate can be a costly endeavor, so be sure to carefully evaluate all information and take only calculated risks.
Additionally, begin with areas you know. Take a look around your own neighborhood and metro area and begin to evaluate the market. Look at surrounding areas for new development and housing benefits. Notice what areas seem to be experiencing a rebound or rejuvenation, and observe which areas look dilapidated or run-down.
An inexpensive way to get more information about area risks is with our HomeSmart Report. For only $6.95, you can gain a wealth of information about the area risks associated with a particular market. Learn about foreclosure risks, market strength, current appreciation rates, sales turnover and more. This fact-finding process will assist you during your learning phase, and it will continue to help you once you are finally ready to evaluate properties for investment.