Discover a Real Estate Invoice Sample for Research and Development

Real estate invoice sample for Research and Development

hey guys this is Justin for breaking to see re calm and in today's video what we're going to do is break down how to do a real estate market analysis so you can decide where you want to invest for your next deal so if you're trying to decide what the best markets are to invest in and you want to know how you can actually figure that out make sure to stick around for this video [Music] now if you're new here on this channel we talked about real estate investment analysis in real estate financial modeling so if you're looking to do your first commercial real estate investment deal or break into the commercial real estate industry altogether make sure to subscribe to this channel and hit the notification bell to be notified every time we release a new video so if you're looking for a real estate market to invest in how do you actually run an analysis to figure out where you can maximize your chances of success for your next real estate deal now in my experience the single biggest thing that you can analyze to figure out whether or not a market is growing is to take a look at the net migration patterns of that city and/or state so net migration just measures the amount of people moving into an area versus the amount of people moving out of an area so positive net migration means that more people moved in then moved out and negative net migration means more people moved out than moved in so what you want to see is a positive net migration pattern where cities and states are seeing more people come in overall that are leaving which creates an additional demand for housing retail properties and office space and even industrial warehouse space as well so as more people move into an area the demand for housing goes up and even if many of these people decide to purchase homes that puts upward pressure on home prices which also puts upward pressure on multi-family rent as well this also creates upward pressure on consumer spending since there are more people in the area able to buy goods and services and as far as office properties are concerned many states actually have net migration patterns that are in large part due to job growth in the area and what this means is more demand for office space which creates upward pressure on office rents as well even for industrial properties with more people living in certain areas there will be more of a demand to create industrial hubs near that growing population to get them products that they've ordered more quickly so if net migration patterns really determine the direction that a market is going what actually determines net migration in a market well there are really three main things that are going to affect net migration patterns in an area so that's what we're going to cover next so number one is job growth now even with the growth of remote work the vast majority of people still go to an office space or a place of work every day in order to collect a paycheck and oftentimes these people will actually move to certain areas because of a certain job and with the more job growth you have that increases the demand for housing retail and obviously office space as well now number two is the cost of living now this is a huge one especially for people living in high cost of living cities and states and within this I'm gonna lump in home prices rents and income taxes as well so if you take a look at the US cities with the largest positive net migration in 2018 you'll see lower cost of living states like Florida Arizona Texas and North Carolina are going to top the list while higher cost of living states like New York California Illinois and New Jersey are all negative net migration states now this doesn't only apply to individuals but also applies to companies so if bigger companies can move their office space to lower cost of living areas that allows them to pay their employees a lower salary which ultimately decreases their overhead and allows them to be more profitable companies now finally number three is whether now with more options than ever for remote work or finding jobs out of state more than ever before with technology people are deciding to move where they want to live and find work around the desire to live in a certain city so again if you look at the top of the charts for net migration patterns you see Florida Arizona Texas and North Carolina which are all warmer weather states and again if you take a look at the bottom of the list with the largest negative net migration patterns you see cities like New York Illinois New Jersey Massachusetts Connecticut and Michigan all had negative net migration patterns in 2018 now you'll notice that California is exempt from this list so even the beautiful weather can't keep everyone here now if you put all of those things together you really maximize your chances for a long term growth market and overall profitability if you decide to invest in a deal in that specific city or state now once you've chosen a market the next step in this is going to be the deal analysis port and with that you're going to need to know real estate financial modeling and deal analysis so if you're looking to improve your real estate financial modeling skill set definitely check out my free real estate financial modeling crash course and you can grab that for free in the link in the description below and if you want to go deeper into market analysis real estate financial modeling and building models from scratch and how to analyze multifamily retail office and even single-family home deals check out breaking the CRA Academy for access to all of my courses all of my models and some additional support from me and I'll also link that in the description below so thanks so much for watching if you like this video and want to see more videos like this make sure to hit that like button subscribe to the channel and share this with anyone else who might find this helpful thanks so much for watching and I'll see you in the next video 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