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How to avoid buying rental properties in the wrong u.s. market

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When it comes to real estate investment there are a few pitfalls that investors need to look out for if they want to have a fruitful run as a real estate investor. In this document you can learn how to avoid the trap of making poor investments in the wrong U.S. markets.

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How to avoid buying rental properties in the wrong u.s. market

  1. 1. How to Avoid Buying Rental Properties in the Wrong U.S. Market In order to avoid buying investment properties in the wrong U.S. markets you need to understand that real estate investors fall into two traps here: 1) Buying in the wrong Macro-market. 2) Buying in the wrong Micro-market. These are actually quite different from each other and this document will take a brief look into both of these expensive mistakes and discuss strategies for how you can avoid them. When it comes to the world of real estate investment there are some markets that dramatically favor investors (we call them “investor-advantaged” markets) and many markets which do not, as well as a number in between. Being able to navigate through these markets is critical to having a successful real estate investing experience. However, one of the tricks is that the best real estate markets continually change over time, so you need to be able to identify them at the moment you are ready to buy. In the U.S. it is generally the case that Macro-markets which have solid job growth, population influx, and attractive price-to-rent ratios (low acquisition cost and high rent, which maximizes your cash flow margin) are primetime markets for some highly beneficial real estate investing. However, the majority of the markets in the U.S. are not advantageous to real estate investors, either because they are declining markets or, on the other side of the spectrum, because the properties are too expensive to produce significant cash flow. In order to identify investor-advantaged Macro-markets when you are ready to buy, it is crucial to have a team of investment property specialists (who are not tied to one particular market!) behind you that can help you navigate the ever changing landscape of the U.S. real estate
  2. 2. market. Maverick Investor Group was founded by real estate investors for real estate investors to provide this as one of our key services. A second mistake commonly made when investing in real estate is buying properties in the wrong Micro-market. Many people mistakenly believe that if you find an investor-advantaged Macro-market that every property within that given area is a good investment. The reality is that even in the best Macro-markets most properties are not a good investment. Successful real estate investing is predicated on being able to drill down to this second level and identify a property in a solid Macro-market that is ALSO in a desirable Micro-market where qualified tenants want to rent, primary home owners want to live, and the price-to-rent ratio is maximized. A good Micro-market will have high rental demand and low vacancy which is likely to have your property occupied longer, rented quicker, and sold more easily when you are ready to exit. Maverick Investor Group has relationships with teams on the ground in each investor- advantaged market that know every inch of the market, from subdivision to subdivision, like the back of their hand....and when you work with Maverick, all of that expertise is at your disposal. It’s also important to keep your own emotional tendencies in check when selecting good investment properties. It can be very costly to purchase property simply because it is an area that you like to vacation, because you have a family member in that area, or because you’ve heard that there is a stampede of people purchasing property there. These are not sound investment criteria and can get you into a very sticky situation in the long run. Maverick Investor Group can help you buy in the right macro-markets, the right micro-markets, and grow your real estate portfolio over time and across markets. Our focus is on helping you reach your real estate investment goals. Maverick Investor Group is run by investment property specialists and serves individual real estate investors exclusively. Our vision is to radically improve peoples’ lives through real estate. Visit us today athttp://www.maverickinvestorgroup.com/

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