Think you know the next hot real estate market?

Then you know a good real estate investment depends on more than just the property. It could have all the right physical features, but if it’s in an under-performing market, then the property will never produce a strong ROI. There are socioeconomic factors that affect an investment’s value. These factors can include: population growth, market supply, and municipal planning.

You can track these factors before making an investment decision using forecast models. You can track pertinent market data as it relates to an investment value. Real estate investors and developers use forecast models to determine what markets to focus on. They can also be used to track up-and-coming markets, so you can get a lead on the next hot real estate market!

There’s few more qualified to talk about forecast modeling than David Farmer. A recognized civil engineer, and city planner, Dave has been in the real estate industry for more than 20 years. He has extensive development experience and is the former Chairman of SW Florida District Council for the Urban Land Institute.

He now lends his extensive real estate expertise to Metro Forecast Modeling (MFM), a population forecasting and modeling firm in Lee County. As CEO of MFM, Dave brings his understanding of growth drivers to forecast analysis.

Find out how you can use forecast models to get a lead on the next hot real estate market!

Population growth dictates housing demand which determines what development is needed
2 types of forecast models:
- Aggregated - wide-scale analysis of an entire metro area
- Dis-aggregated - Analyses based on designated zones within a metro area. Lee County is divided into 1400 traffic analysis zones.

Florida Market Forecasts

Lehigh Acres:
- 1-2% vacancy rates, high housing demand
- Need for commercial development
- Poor planning makes aggregate development projects difficult
Downtown Sarasota:
- Can accommodate higher density than currently using
- Multifamily and commercial developments replacing existing small structures
Jacksonville:
- Pent-up housing demand
- 3000 additional units needed now
- 1600 more needed by 2020
Orlando (City):
- High housing demand
- 8000 units needed over next 3 years

Contacts

You can contact Dave directly at dave@metroforecasting.com
You can find out more about MFM’s services by emailing info@metroforecasting.com

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Listeners of the show will remember Jillian Bandes who, in episode 74, discussed what real estate investors should consider about building structure when looking at commercial multifamily investing. The project manager for Bandes Construction covered 6 hot topics on building structure and maintenance that investors should be aware of with commercial multifamily properties.

In this episode, we discuss Jillian’s first investment property….a single family home with an ajacent rental apartment. She discusses razing the property, dealing with the local code and building officials and her plans on whether to rent the units or live in one and rent the remainder. The property was purchased through a foreclosure and we cover the online methods now employed by Pinellas County. Not only is this project about a potential home and investment, but Jillian is passionate about blazing the trail for urban renewal and redevelopment in St Petersburg’s core and her unit is in the heart of a rapidly changing area.

Residential property permitting and zoning regulations differ from commercial properties
Property location
- Choose property in an area you are familiar with
- Walk surrounding neighborhood
If investment property, define target rental market
Due-diligence
- If foreclosure property, know state of title (liens)
- What is the property zoned for? Is property up to code? Accessory buildings permitted?
Work with local and municipal officials
St. Petersburg, Florida
- Undergoing immense urban growth period
- Investors need accessibility to invest in properties with potential for redevelopment/renewal
- South St. Pete offers development opportunity and reasonable prices w/ proximity to cultural amenities

Jillian extends a big thank you to Carlyn Neuman of Tampa’s 360 Realty for helping to navigate online foreclosure bidding as well as to Katrina Trump of Bank of Tampa, for assisting with securing financing.