Know Thy Market!! Or Be Killed By Bad Investing!!

Know Thy Market!! Or Be Killed By Bad Investing!!

As most of you are aware, the housing moratorium is lifting on September 15, 2009. This is a key date for investors who have markets where they can buy, rehab and sell right now. It means that if you're doing this type of investing, you want to make sure that you have that house rehabbed and flipped before the flood of foreclosures hit the market again. Otherwise, you could find yourself stuck renting out that rehab. In addition, if you're making offers on properties with the intention of selling in 6 months to a year, you might want to rethink that strategy. You're going to be competing with the banks. I am not saying to stop your investing, I am saying be cautious for the next month or two. You might be getting a great deal this month, but find you've paid too much next month. DG in BARM talks about knowing your market. It is very important to know which cycle your market is in. Where the "hot zones" are, where the "hidden" gems are, when inventory is low and when inventory is high and at what price point houses are selling. And finally, who your competition is. Research is important to the savvy investor. Two sites that can help you keep track of market data in your area are www.mgic.com and www.altosresearch.com These sites are free and give you a good idea of where your market is right now. I really like altosresearch because you plug in your city and get 3 tiny graphs letting you know the median house price for your city, the amount of inventory on the market and days on the market. All of this is very important information. In addition, you should be utilizing DG's www.totalviewrealestate.com to help with comparables and www.realquest.com Arming yourself with this information will put you ahead of your competition.

KimmyJ

Never become so much of an expert that you stop gaining expertise. View life as a continuous learning experience. – Denis Waitley

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try www.altosresearch.com

The spelling in the previous post was wrong, took me to a dead link.

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BRE #01956371


Thank you!

Thank you DJ for pointing that out. I edited the post to reflect the correct website address.


No problem Kimmy

It took me about 3 tries to figure it out. lol

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BRE #01956371


Kimmy,

Thanks for the great information! Very informative and helpful, I will certainly keep this in mind. Thanks for the links as well, I haven't tried a few of them. I'll have to check them out.

Thanks again and good luck! Smiling
-Mike Hutchins


Sadly..

Altoresearch has no information at all for the state of New Hampshire. Sad Oh well, can't win em' all lol.
-Mike Hutchins


Mike

I just pulled up rochester. What city are you trying to pull up?

KimmyJ


Kimmy,

Oh really? Hmm well I searched for Bedford 1st as thats where I live. Secondly I tried Manchester as it is the largest city in the state. Third I tried Concord as it is the state capital, tho slightly out of my target market.

I assumed if they did not have the state capital, they would not have any NH cities. That is strange that Rochester showed up, its a very small town which I have not even been to. I just tried Nashua as well (2nd or 3rd largest city in the state) to no avail. Rochester is the only city I see listed for NH so far haha. Odd lol.

Thank you for your input, I appreciate you taking the time to look into that for me! Smiling
-Mike Hutchins


Interesting...

Yeah, I tried pulling up Dover, but no luck. However, they had Rochester. Go figure... If I come across any housing data for your area, I'll PM you with it.

KimmyJ


Kimmy,

Thank you very much, I appreciate your willingness help! People such as yourself are who make this site such a great place! You must be familiar with NH if you know some of these small towns, no?

Thanks again and good luck! If I can ever do anything to help you out, let me know! Smiling
-Mike Hutchins


Not familiar

with NH. Went online and googled new hampshire cities. I thought what ever came up should be some kind of big city. I just lucked out by picking Rochester!

KimmyJ


No Arkansas Citys

I tried several larger cities for Arkansas at the altoresearch site and none came up.


Kimmy,

Ohh I see. I just assumed with the small towns you where mentioning that maybe you where familiar with NH lol. Thanks again for the help! Smiling
-Mike Hutchins


Sept and Oct

I went to an investors meeting on Tuesday. They had a market alalysist there who was pretty emphatic that there would not be a big rush of REO's. Me, I'm not so sure so will only work on wholesaling for the interim. His thoughts were that the banks havn't dropped all that shadow inventory yet and will continue to doll them out because:

They have bail out money and can wait this out to get top dollar

If they do release the inventory, it will adversly affect all housing prices including the ones they want to sell

Currently, by releasing them a little bit at a time, they are controling the market and getting multiple offers

It is believed that the government is pushing them not to do a big release as it will hurt the economy more.

and

They are selling them in lots before they ever hit the market.

We saw scads of charts and graphs and listen to many old timers in the business. During a "Haves and Wants" section of the evening, one man stood up and told the REO Brokers int he room that he would buy their REO lists, paying cash, to close in 7 days. (And I wondered where the REOs were. Now I have a better idea)

I do not promote the validity of these statements, only passing on what I thought was a very informational meeting. Personally I would rather be safe then sorry and see what the next couple of months hold.

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"Faith is taking the first step even when you can't see the whole staircase."

~ Martin Luther King, Jr. (1929-1968)

www.beaconinvestorsgroup.com


Wendy,

Thanks for relaying the information. I guess we all just have to wait and see what happens. No matter the outcome there will still be plenty of money to be made, we just have to "think outside the box!"

Good luck! Smiling
-Mike Hutchins


Market

There will be more REOs. Your club was correct that the banks are going to release foreclosures in spurts. This will help stabalize the market. However, the fact is that banks are in the busy of lending money not holding and selling real estate. They have to start getting the inventory out on the market and sold. The moratorium has kept them from foreclosing on many properties. There are still over a million properties in foreclosure and more every day starting preforeclosure. This mentality of lack amazes me because it took us well over five years of a strong, aggressive banking industry to pass out these subprime loans. We have just begun to see those loans go bad. There are still many foreclosures to come.

KimmyJ


Very informative

Thanks to all for sharing this valuable piece of information. However, please be on the look out for those great deals or opportunities that may arise. God Bless.

Sandra

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"You can never get to the top, if you are not willing to climb. Do not look at the difficulty of the climb, only anticipate the view from the top."
"Can't even walk without you holding my hand." (Song)
"Is anything too hard for the Lord ..." Genesis 19:14
"In all things, wait on the Lord."
"Think not of your own deliverance, but trust in God who will give in abundance."
"When you are down to nothing, God is up to something." Unknown
"Our lives begin to end, the day we become silent about those things that really matters." Dr. Martin Luther King Jr.


THANKS A BUNCH

A BIG thanks for the KimmyJ for sharing the information with the DG family.


Thanks Kimmy for the great

Thanks Kimmy for the great website. Except for one city, I was able to get the market data for my target areas.
Theresa


Great stuff!

Great stuff!


Thank you Kimmy

Great post. I like the Altos website (if you are lucky and your target area is available Eye-wink)


Thanks

I love coming to the DG website. There is always up to date information. Thanks for posting,
Kat


watch for the primes

We were just discussing the market conditions, particularly the foreclosures, and some of the more expierienced investors have noticed that the foreclosures that are coming through now are of the Prime rather than sub-Prime varieties. They think this is due to their losing their jobs or having their hours cut because consumer spending has not bounced back like they had hoped. Just curious if anyone has noticed this in their areas? On a side note we are also starting to see an increase in the commercial foreclosures as well.

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If you think you can; you're right.


Thanks Kimmy

It's always great to come on this site and get such great information about all aspects of the real estate game. Thanks for the links, I'll go check out my area now.

Rick888

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Rick Merritt
Trident Realty, LLC

Weak is he who permits his thoughts to control his actions; Strong is he who forces his actions to control his thoughts. --Og Mandino

Get your very own 1-800# at a great rate. Just click here:
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Oh well

It looks like altosresearch doesn't have anything on Mississippi. I'll keep the link and check back in the future to see if they add our state later. Thanks again.

Rick888

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Rick Merritt
Trident Realty, LLC

Weak is he who permits his thoughts to control his actions; Strong is he who forces his actions to control his thoughts. --Og Mandino

Get your very own 1-800# at a great rate. Just click here:
http://www.itelecenter.com/COAPhoneSolution?referredby=8662684543
Check it out. Now you can set up your own 24 hour messaging system!


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