Wednesday, October 26, 2011

Looking to invest in real estate? Do your homework first…

With a vast and seemingly unending amount of knowledge at the simplicity of our fingertips, making an educated decision about nearly anything can be as easy as typing www.  Now a days, almost everyone googles whatever is unknown to them.  I am guilty of internet searching even with friends at dinner when no one seems to have an answer for the trivia being discussed.  When it comes to any type of investing, researching an investment vehicle is everyone’s first step to making an educated decision on what to invest in and how to go about doing so. 

When it comes to investing in real estate, one thing is certain…. What you are purchasing is not going anywhere, literally.  The great aspect of buying real estate is that you have a tangible asset. While values may change increasingly or decreasingly, the asset will always be there.  The key to a solid investment is to know about the variables that will affect the asset you are acquiring.  There are many variables that directly and indirectly influence the marketability of a property.  Some to consider are school districts, access to highways, convenience to shopping, vicinity to recreational accommodations, and proximity to health care facilities.   

To most, the aforementioned variables are elementary to the avid investor.  There are so many other demographics that most fail to research that can greatly impact the success of an investment besides the typical guidelines. 

A great place to begin your research is a website called This website should be stored in your favorites bar if you are a real estate investor.  Everything there is to learn about a state, county, city and subdivision can be examined here.  

Here is an example:

You can type in a search for Euless, TX.  If you are a landlord and are looking for a great are to buy long term income generating property, this would be a great area to consider.  On city-data, it states that “Euless is above the state average for rentals vs. homeowners.”  Also, city-data shows that the main 2 types of occupational industries are transportation and manufacturing (indicating a high index of blue collar workers who are typically renters).  Another indicator that this area would be a great location to consider owning rental property is the fact that every 3 out of 4 home loan is denied.  The population growth rate is 16% over the last 10 years. With this information it is safe to assume that many people want to live here, but few are able to purchase a home.  This makes for a perfect storm if you are a landlord.  Below is a link with more information about the city of Euless.

Another great website to check out is the Texas A&M website at There is a plethora of information with projections of population growth, long term civil engineering plans for highways and high impact zoned projects.  Here you can learn of highway expansions such as 377 and the impact it is going to place on areas such as Granbury and Stephenville.  This type of research can lead to making a sound decision on where to buy land.

There is an unending amount of information available to make a smart decision every time you look for tips on investing.  If what is found seems to be overwhelming, always seek the guidance of professional service.  There are investment real estate specialists in nearly every metropolitan area that are more than willing to assist and educate.   

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