In previous articles we have addressed time and again that the importance of knowing how evaluating potential investment properties is the key to success in this business. For example, knowing what a property will be worth once you’re finished with the rehab (ARV) is essential, along with knowing the cost of repairs, closing costs as well as any carrying costs.

Knowing these basic figures will provide you with a realistic and accurate idea of what your profit will look like, which will in turn help you to determine your offer price.

It’s pretty simple math. But have you been overlooking profitable transition areas?

I’m sure you are familiar with the term gentrification, which is defined as the process of renovating entire deteriorated urban neighborhoods. This usually occurs due to an influx of more affluent residents purchasing and rehabilitating distressed properties in the area. And in many cases, investors are too late to the game.

So when we talk about “transition areas,” we are not necessarily talking about gentrification areas. Nor are we talking about a transitional real estate market which tends to occur between a buyer’s market and a seller’s market. You know that funny period in which the market isn’t particularly good for either party?

When we refer to transition areas, we are referring to something much better for you as an investor.

What are Transition Areas?

Transition areas are pocket areas where remodeling contractors have started doing fix & flips. When re-modelers are flipping homes in an area, it starts accelerating the values of all properties in that area.

And when you buy early in these areas, you will see the values of your properties appreciate quicker. In short, transition areas could be best described as “pre- gentrification areas.” I’m sure I don’t have to go into too much detail about the benefits of having foresight and knowing where and when to invest early.

How Do We Find Transition Areas?

Here at The Equity Finders, our Smart Map ARV Comping System finds them for you by comping over 350 newly listed properties every day. All of our comps are based on the best 3 adjusted comps within a half mile of the subject property.

Our exclusive Smart Map ARV Comping System provides you with a complete breakdown showing potential profits based on the age and condition of any property along with a CMA “Comparable Market Analysis.“  Having the ability to access and evaluate accurate comps and data is vital for all investors. Having the ability to see into the future by identifying transition or “pre-gentrification” areas in advance is exactly what our Smart Map ARV Comping System can do for you.

Our Smart Map ARV Comping System is provided as a free service to our clients!

Visit http://www.theequityfinders.com to learn more today!

by Laura Leatherdale