From Jason Payne, Market News Analyst …
Hey, gang. It’s me, Jason.
Although my contributions to Real Estate Mogul are typically limited to the realm of Market News, Research & Analysis, I’m stealing this lesson's introduction from Mogul’s staff of (talented) writers…
…because I want to briefly explain the importance of the video you’re about to watch.
And even as I try to find the right words, I realize that I cannot overstate the importance of today’s lesson.
Basically, the video you’re about to watch reminds me of some high-quality (and expensive) training I once received at my former employer’s investment bank, during my early days as a research analyst on Wall Street.
At the time, when I was first beginning to publish “Buy”, “Sell” and “Hold” recommendations on the equity shares of various real estate companies, I had grudgingly agreed to participate in some research-related training – which I prematurely (and incorrectly) judged to be “boring”.
Inches Wide & Miles Deep
The training material was advertised to be very similar to today’s lesson, but I was not looking forward to sitting in a training seminar…
…until my Research Director pulled me aside to encourage me, with words I’ll never forget.
“I’m jealous of you, Jason,” he announced while intercepting me on my way to the seminar.
“Why?” I asked, bewildered that one of the smartest and most powerful Masters of the Universe in our firm would envy my position.
“Because,” he said, “you get to be inches wide and miles deep.”
“Wha…?”
“You see,” explained my boss’ boss, “I’m no longer a research analyst anymore. Instead, I’m stuck up here in this administrative role… And although this new role has its perks, it no longer allows me to be an expert in my former areas of research. As I shepherd our staff of research analysts, I find that I must increasingly become ‘miles wide and inches deep’ – which is fine for the administrative side of my personality, but it renders me somewhat useless for adding value to my former investor clients.”
I nodded my head, slowly beginning to understand the perspective of this former stock-picking all-star.
“But you…” he continued. “Jason, you and your fellow researchers get to be ‘inches wide and miles deep’, in order to teach our investor clients exactly what they need to know for making money in your industry. So go in there and soak up that seminar. Learn everything you can, and pay attention to even the tiniest nuances of each real estate market. Nothing is too granular! No detail is too small!”
Dig Deep & Be An Expert
And he was absolutely right.
Every market for lucrative real estate investments is highly competitive, and only the most diligent students win the intellectual arms race for vital dealmaking firepower.
You may never have a billion dollars to invest, but you’ve got billions of brain cells in your head, and they can help you consistently make the best deals in your market of choice, as long as they are working together with laser-like focus.
By wearing proverbial “blinders” in your market-specific research, you may at first worry about the opportunity cost associated with missed opportunities in other regions of the country. But over time, your ability to monitor the pulse of one (or two) specific markets will allow you to develop a most gratifying “sixth sense” for lucrative dealmaking.
It will become second nature to you.
You will be able to explain even the most complicated trends and developments (capitalization rates, economic abnormalities, etc.) without batting an eye. Heck, if you really keep your nose to the grindstone, your diligent research will allow you to even predict these developments in your market of choice.
So dig deep and be an expert. Go ahead, give yourself permission to be “inches wide and miles deep”. You’ll be glad you did. Take it from me, the guy who followed my director’s advice and become one of the youngest published research analysts on Wall Street.
In today’s video lesson, JP Moses explains how you can use Trulia (yes, Trulia) to tackle several of the important skills that every market analyst needs to master. This is how the professionals at hedge funds and investment banks approach their research, so you will be wise to consider these concepts in your own ongoing due diligence.
JP Moses explains 5 cool Trulia tricks for market research …
Crime Rates – Familiarize yourself with the crime rates, and related trends
Property Values – Familiarize yourself with property values, and related trends
Rental Rates – Familiarize yourself with rental rates, and related trends
School Districts – Familiarize yourself with school districts, and the quality of schools therein
Deal Activity & Concentrations – Familiarize yourself with the general frothiness or
deal activity in different neighborhoods, including an understanding of why the deals are (or are not)
concentrated in certain areas.
JP Moses
is a real estate investor in Memphis, TN, with experience ranging from land lording to note buying, rehabbing, and wholesaling. However, wholesaling is the area that he enjoys most and where he bring the most experience and expertise to his students.