How to Narrow your Real Estate Investment Universe by Jon Strishak

  • 136 views
Uploaded on

A presentation describing the process of how to narrow your real estate investment universe.

A presentation describing the process of how to narrow your real estate investment universe.

More in: Real Estate
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads

Views

Total Views
136
On Slideshare
0
From Embeds
0
Number of Embeds
0

Actions

Shares
Downloads
0
Comments
0
Likes
0

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. Multi-Family Investor Collective (MFIC) Market Research:Narrowing Your Investment Universe February 4, 2009
  • 2. AgendaI. Brief Prior Meeting Review & New Member IntrosII. MF Investment Process Narrowing Your Investment UniverseIII. State & County IdentificationIV. City SelectionV. Neighborhood AnalysisVI. SummaryVII. Open discussion & Concluding Statements
  • 3. I. Review of Prior Meeting &New Member IntrosReview of Prior Meeting:Prepare Yourself for Multi-Family Investment SuccessNew Member Intros Investment experience Why real estate investing? Short-term goal Something interesting about youGoal: ID one person who you may be able to assist.
  • 4. II. Multi-Family Investment ProcessPhase Investment ProcessPREPARATION 1. Prepare Yourself for Multi-Family Investment Success 2. Market Research: Narrowing Your Investment Universe 3. Building & Managing Your Investment TeamBUY RIGHT 4. Mastering Multi-Family Investment Analysis: The Properties’ First Hurdle 5. Offer & Negotiations: Getting to Yes 6. Due Diligence: Verify—Do I Really Have a Good Deal?MANAGE RIGHT 7. Writing an Investment Management Plan: The Roadmap 8. Executing Your Investment Management Plan 9. Value Add: Practical Ways to Increase Property ValueSELL RIGHT 10. Sell Right: Preparing Your Property to Sell For Top Dollar
  • 5. III. State & County Identification Population Growth, 1st Predictor of a Growing MarketInvest Where People Are or Will BeUS Census Bureau: Population Projectionshttp://factfinder.census.gov • Decennial Census • American Community Survey • Population Estimates Program • Economic Census • Annual Economic Surveys
  • 6. III. State & County Identification Population Growth, 1st Predictor of a Growing MarketTop 10 StatesRanked by GrowthRate2000 to 2030 4. Texas 3. Florida 7. North Carolina 8. Georgia 1. Nevada 9. Washington 10. Oregon 2. Arizona 5. Utah 6. Idaho Source: US Census
  • 7. III. State & County Identification Population Growth, 1st Predictor of a Growing MarketTop 10 StatesRanked by GrowthRate2000 to 2030 4. Texas 3. Florida 7. North Carolina 8. Georgia 1. Nevada 9. Washington 10. Oregon 2. Arizona 5. Utah 6. Idaho Source: US Census
  • 8. III. State & County Identification Job Growth, 2nd Predictor of a Growing MarketInvest Where the Jobs Are or Will BeUS Bureau of Labor Statistics: Available by national/state/county/occupationhttp://www.bls.gov
  • 9. III. State & County Job Growth: Invest Where Jobs Are/Will Be Thousands of counties are now experiencing job growth… Example: Travis County (Austin), TXPositive Trend: Maricopa County (Phoenix), AZ Dallas County (Dallas), TX Dade County (Miami), FLNegative Trend: Mohave County (Lake Havasu City), AZ Hopkins County (Sulphur Springs), TX Brevard County (Cape Canaveral), FL Grand Canyon Dairy Capital of Texas “Space Coast” for JFK Space Center
  • 10. IV. City (MSA) SelectionReview City/MSA multi-family indicators Review: Institutional ● Available Property Types Market Reports City Websites ● Vacancy Trends Masterplan ● Employment Trends Local News & Media ● Construction Trends ● Rent Trends ● Sales Trends Exercise: Institutional Marketing Reports
  • 11. V. Neighborhood AnalysisNarrow down your investment universe to high growth neighborhoods.Ensure neighborhood is stable or improving. Look for growth drivers● Development Review: Incentives City Websites● City Planning & Masterplan Path of Growth Local News & Media Police Department Websites● Crime Stats & Trends Zip Code Analysis Websites● Transportation● Employment Diversity / Sources● Tenant Profile
  • 12. V. Neighborhood AnalysisNarrow down your investment universe to high growth neighborhoods.Ensure neighborhood is stable or improving. Look for growth drivers● Development Incentives● City Planning & Path of Growth● Crime Stats & Trends● Transportation● Employment Diversity / Sources● Tenant Profile
  • 13. VI. Putting it All Together:Narrowing Your Investment Universe NEIGHBORHOOD ANALYSIS Review local media sources to narrow down your investment universe to high growth neighborhoods. Ensure neighborhood is stable or improving. Look for growth drivers. ● Housing Composition ● City Planning/Path of Growth ● Crime Stats & Trends ● Transportation ● Employment Div / Sources ● Tenant Profile CITY SELECTION Review institutional market reports to ensure market indicators are favorable. ● Available Property Types ● Vacancy Trends ● Employment Trends ● Construction Trends ● Rent Trends ● Sales Trends STATE & COUNTY IDENTIFICATION Review US Census demographic data and identify states that will experience population growth. . Review US Bureau of Labor Statistics and, within the states identified, select counties that will experience significant job growth. ● Population Growth ● Job Growth MARKET SELECTION PROCESS
  • 14. VII. Open Discussion &Concluding Statements Questions? Handouts Online Sources of FREE Institutional Research Reports Deal X-RayNext meeting…Building & Managing Your Investment TeamGuest Speaker: Chad Hill, Dallas/Ft Worth GMAC REO Team
  • 15. Extra Slides:Determinants of Property Value The “DUST” framework. Determinant Importance D emand 2 U tility 1 S carcity 3 T ransferability 4