The Only Criteria That Matters in Real Estate Investing


All real estate is local. Sure, you may compile data and take a look at to see if there are any big picture trends. But when prices in your neighborhood are happening while prices in some city across the country (or state!) are going up, “national” numbers don’t matter. 

Here’s the quickest solution to understand just how local real estate is: Scroll through Google News headlines. These were the primary three headlines I saw once I looked for real estate prices:

The more you read — and the more you research — one thing becomes clear.

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The one thing that counts is what’s happening where you’re living — or investing.

The macro trend of housing prices is simple to elucidate. Mortgage rates are up. That makes it dearer for non-cash buyers to purchase a house. A few of those buyers aren’t entering the market. Others can’t afford to purchase as much home as they might previously. Meaning sellers aren’t receiving tons of offers on their homes. So that they’re lowering prices to sell them.

But in lots of markets, prices are staying the identical and even going up. That’s because the availability of accessible housing is scarce. Most potential sellers are sitting on mortgages with extremely low rates of interest. They’re not desirous to buy a recent home with the next mortgage rate. So as an alternative of selling their homes and moving on to recent ones, potential sellers are sitting out. Fewer buyers combined with even fewer sellers results in prices either holding regular or going up depending on the region.

For investors, which means real estate can still be a very good play — even with prices “falling nationally.” The secret is understanding the market that you just’re investing into. In order you peruse Arrived, Fundrise, and other real estate crowdfunding investment portals, keep in mind that your due diligence process has to increase well beyond the investment terms you see on those sites.

Investigating the market you’re investing into is more necessary now than ever before. So take the time to do the research. And if all the pieces checks out, go ahead and invest. Real estate may be profitable should you know where to take a position.


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