Market Information Protects Your Investment

The smart investor will spend excessive time and effort collecting market information. Market information allows the investor to place cash in front of a trend. Trends protect the market value of your investment.

In the case of one property, I purchased. The previous owners had not conducted regular market studies over the course of several years. As a result, they did not note that their competitive niche allowed rent increases of more than $200 per unit. We realized this gain per unit in less than 12 months for the 56 units with less than $100,000 in improvements. Results like these are rare, but they underscore the critical nature of market data.

Because of points like these, the IRREIA has an area under tools and services dedicated specifically to this area. Until now, the information available has been skeletal.

As of today, I’ve posted:

Marcus and Millichap’s 2010 apartment market report,
The Harvard Joint Center of Housing Study 2009Report,
Harvard’s Joint Center of Housing Study on Determinants of Operating Cost,
National Multihousing Council’s 2010 Report

These reports offer many insights that can improve your investment success by allowing you to grasp underlying macro trends and using them to advantage your investment choices.

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