Determining Locations for Apt Purchase

[andviv]

bump...
so, talking again about how to determine locations, jobs are a key indicator. How to get information about new jobs relocating to an area? What sources can you think of?

I know BLS.gov has statistics about this. Any other sources? I can also think of local chambers of commerce (many have newsletters, subscribe to those in the areas you are interested). Any other ideas?

 

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[Kung Fu Steve]

Newspaper for one.

But I think the biggest way is to talk to people. You never know where you will hear this kind of stuff from. "My buddy has a roommate that is being transferred to a new warehouse south of the city, he's pissed off because he doesn't want to move" Or something of the like.

When I was researching locations for my school I spent a ton of time looking at demographics from 1990 and 2000. Comparing the growth patterns. And since they were then outdated I went to a lot of resturaunts and such and asked about the area. Usually starting conversations like "wow this area is growing isn't it?" and I get responses like "OH YEAH! Did you hear there's a new Buffalo Wild Wings coming in?" People like to share that knowlege.

Once I had some opinions from local workers (targetting people that heard a lot, such as waitresses.. the cute ones... and places like Jamba Juice was huge for me). I then looked at the growth patterns from the demographics from 90 to 2000. And then drove around a lot and did a gut check. Has it continued to grow at this pace? Will it continue to grow? Are there any big things blocking the growth of the city? (Minnesota is the land of 10,000 lakes remember) And then finally I looked for certain businesses to be around. Businesses that rely on tons of traffic, low profit margins, places like MGM Liquor. Any liquor store needs to do a lot of volume to stay in business. So that means if a big chain like them has arrived it says a lot for the community. The other things I look for is Walgreens. If you look at the history of Walgreens and take a look at their business plans and models you would want to be near a Walgreens.

So I guess this relates to a B&M business but hopefully it helps with Apartment complexes as well. I'm back to square one in my Apartment search but don't think I'll quit any time soon ha ha.

So I guess my steps for looking at a particular market would be:

1.) Looks at Demographics
2.) Read local newspapers, talk to locals, listen to heresay
3.) Do a gut check, driving around helps this a lot I think. Is it busy all the time or not?
4.) Look for businesses that have their stuff together.

While I have put in a ton of work for my process so far, I would appreciate anyone that has some ideas in refining it!

 

[hatterasguy]

bump...
so, talking again about how to determine locations, jobs are a key indicator. How to get information about new jobs relocating to an area? What sources can you think of?

I know BLS.gov has statistics about this. Any other sources? I can also think of local chambers of commerce (many have newsletters, subscribe to those in the areas you are interested). Any other ideas?

You can actualy buy commercial RE reports with important info like that in them, for a pretty penny though. I think Loopnet or the CCIM guys sell them.

Steve can you put up some details of a past deal? It seems like to do what you do, you need to really research a local market and be comfortable that it will turn around. Than go find a building. Finding a property seems second to finding the right area.

 

[Charmed Angel]

Kung Fu Steve

Good stuff!

 

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[8 SNAKE]

I came across this article today and thought that the information in it might be helpful to people scouting potential locations for apartment investing. I know that Steve-O is working in Houston, which happens to be the #1 city listed in this article!

http://finance.yahoo.com/real-estate/article/105605/Best-U.S.-Cities-for-Earning-a-Living