The adage about the importance of location still rings true in the world of real estate investing. The strength of any deal is largely based on the strength of the market it is located in. You can be offered a deep discount on a property in the middle of nowhere, but it doesn’t necessarily mean you are getting a good deal. If the market lacks sufficient demand you will be stuck with a difficult asset to get rid of.
Prior to making an offer you should spend some time narrowing down a few markets you are comfortable with. This way instead of analyzing the market all you need to do is evaluate the property and make a decision. Breaking down a market means more than just looking at the most recent sales trends or reading the headlines in the real estate section. By digging a little deeper you can choose markets on an upswing instead of ones heading in the wrong direction. Here are five key due diligence areas to help evaluate any market.
The more time you spend researching a market the more comfortable you will be. Every few weeks you should review your information so there is nothing you miss. Any due diligence should start with these five key areas.
originally posted https://www.cthomesllc.com/2018/02/5-key-areas-due-diligence-market/