On today's episode, author, mentor/coach, and thought leader Hadar Orkibi meets with us to discuss his journey into multifamily real estate investing and the importance of understanding your target market.
Market selection is one of the most important responsibilities for a real estate investor. Location, Location, Location! Not all markets are created equally. Hadar explains the fundamentals of market selection and what every investor should be looking for when identifying their target market.
Here are some of the key metrics Hadar studies when evaluating a market:
1. Job growth
2. Unemployment
3. Business and landlord friendly states
4. Population size & growth
5. Household median income
6. Median home prices
7. Supply vs absorption rates
8. Future employers coming into the market
9. Identifying the path of progress
Understanding market cycles is another important factor to consider when selecting a target marketing. Each market goes through 4 phases of economic changes:
1. Expansion (Boom)
2. Hyper supply
3. Recession
4. Recovery
Understanding each phase of the market cycle can help an investor identify the best investing strategy and avoid making costly mistakes. Hadar recommends being present in your target market and keeping your finger on the pulse. Attending local meetups and networking events and subscribing to the local newspaper or news outlets are great ways to stay present and stay up to date on what is happening in that market.
To connect with Hadar and learn more about his mastermind, visit MIHMastermind.com. To receive a copy of his ebook, "The Real Estate Cycle," visit MFIholding.com.
Tune in next time!
