The term demographics refers to population characteristics such as the income levels, occupations, education, ages, household size, household composition, and so on. This demographic data can be obtained by real estate investors from the U.S. Bureau of Census and commercial market research firms at www.census.gov.

On a local level, however, and even more important than current neighborhood demographics, real estate investors must learn who is moving into the area. For example, a good sign for investors that there may be appreciation potential is when a historically lower-income area starts attracting middle or upper-middle-income younger residents, or when many residents in the area are moving from welfare to jobs.

How do you learn about an area?

First, get out of your car and talk with residents in the neighborhood. Talk with real estate agents, mortgage loan officers, retail merchants, schoolteachers, and others who might have firsthand knowledge about the area. Ask questions such as, whether they see the area changing, whether these changes are positive or negative, and what they like least and like most about the neighborhood. Then evaluate what you see and hear and form your own conclusions. If researched correctly, real estate investors should be able to form an opinion about the area that helps decide whether the people moving into the neighborhood are likely to push up home prices and rental rates, or causing it to deteriorate.

Real Estate Investment Software Continues to Sell Despite Our National Real Estate Meltdown

ProAPOD® Real Estate Investment Software reported today that sales for its real estate investment software solutions are steady despite the nationwide real estate market meltdown.

A leading real estate investment software provider since 2000, ProAPOD® developer James Kobzeff admits that he had apprehensions about the troubled real estate market. “Given the subprime mortgage crisis,” Kobzeff says,” and the fact that our software services real estate, I expected less interest from real estate agents and investors for any kind of real estate software this year. Thankfully, that’s not been the case, however. Our software solutions are still very much in demand.”

The subprime mortgage crisis began in approximately 2005-2006 with the bursting of the housing bubble and high default rates on “subprime” and adjustable rate mortgages (ARM) and has become more apparent during 2007 and 2008. Once housing prices started to drop moderately in 2006–2007 in many parts of the U.S., refinancing became more difficult, and defaults and foreclosure activity increased dramatically. During 2007, nearly 1.3 million U.S. housing properties were subject to foreclosure activity, up 79% from 2006, and major banks and other financial institutions around the world have reported losses of approximately $435 billion as of 17 July 2008.

When asked to speculate why his real estate investment software sales are up in spite of the sagging real estate market, Kobzeff remarked, “I think that it’s because our software pertains to investment real estate rather than residential real estate. My guess is that investors wanting out of the stock market are looking for lower risk investing opportunities like investment real estate, and for this reason turning to our software to help them determine cash flow and profitability.”

About ProAPOD®:

ProAPOD® Real Estate Investment Software was developed in 2000 to provide real estate agents and investors easy-to-use and affordable investment software solutions. You can learn more about ProAPOD® at http://www.proapod.com.

If you’d like more information about this topic, please call James Kobzeff at 503/949-9034.

In this article, I want to inform real estate investors about “market value,” and why it may not indicate the best value for the property. It’s one of those nuances about real estate investing you might want to consider.

Market value does not necessarily equal “appraised value” or “sales price.” Market value refers to the selling price of a property only when that sale conforms to the criteria of a market value transaction. However, when you estimate the market value of a property based on the sales prices of other properties, you must always investigate the terms and conditions under which the comparative properties sold. A four-plex down the street that recently sold for $350,000, for instance, doesn’t necessarily indicate that a similar nearby fourplex will sell for $350,000. The sale price depends on the terms of the sale and the detailed features of each property.

Remember, too, the accuracy of your market value estimate directly relates to how well you describe the property’s features. Carefully identify the differences (positive or negative) that make a difference. To make profitable investment decisions, investors must know features, properties, neighborhoods, construction costs, and lot values, and then base their investment decision on knowledge, sharp reasoning, and wise judgment about their discovery.

Also, realize that market value and past appreciation rates do not forecast the future. Even if you buy investment real estate at a “bargain,” you’re not going to make money if the property is about to fall in value, whereas, you can make great returns even if you pay full market value if the property (or location) is about to take off.

Here’s the bottom line. Never buy a property without an accurate understanding of its market value. But understand that market value itself does not tell all you need to know to make profitable investment decisions. Besides figuring out what a property is worth today, also be sure to answer these questions: Will the property generate adequate cash flows? Can you expect the property to appreciate? Can you add value to the property?

PS. ProAPOD® Real Estate Investment Software 10.0 includes a comparative market analysis to assist you with market value. Plus, it includes a wide-range of computations and returns to help you analyze the property’s cash flow. Go to => http://www.proapod.com