Bringing Learning to Life:Day 4: Where to buy real estate?

Finding a market to buy and work in can be the most difficult part of real estate investing. When we were trying to make that decision, I spent a lot of time reading, researching and comparing essential components.

When choosing an investment location there are many questions you must ask:
1. What is the employment rate in the area?
2. What major industry/companies have headquarters based in the area?
3. Are there new businesses projected to be in the area?
4. Are there new development projects such as sports arenas or malls?
5. What is the cost of living?
6. What is the status of any military bases in the area?
7. Is the market satiated with local and out of town real estate investors?
8. What is the average investment property selling for?
9. What are average rents?
10. What are typical vacancy rates in the area?

Some places you can find answers to these questions:
1. Home page of the town/city
2. Bureau of Labor Statistics: www.bls.gov
3. Global Property Guide: www.globalpropertyguide.com
4. Realty Trac
5. Foreclosure.com
6. ALL investor clubs in the town or state...this is a must
7. Yahoo groups about investment real estate in the area
8. Money Magazine
9. Fortune Magazine
10. Entrepreneur Magazine Real Estate Radio

Once you decide you strategy, deciding where to invest is your most important decision. this decision took us almost seven months. Remember, you don't have to invest locally. You have to invest in an area that you can reasonably afford, will support your investment strategy, and has viable property management. Good luck with your research. Hopefully you're buying some of those Rich Dad books that I highly recommend. Just click on the link below for great prices. Happy Reading