You know your budget for your next investment project, and you know where to find opportunities in the area that holds your interest.  Isn’t it enough just to look at the local listings and do the normal due diligence?

It’s no secret that, after the last few turbulent economic years, both the real estate market and other economic markets are changing.  Each market affects the others, and can provide leading indicators of what you can expect in the near and long term.  Trends in stock prices influence the attractiveness of real estate investing, while interest rate movement affects the willingness of potential buyers to make the leap into the next property.

If you want to be a successful real estate investor, it’s critical that you watch the market carefully.

Why?

Here are three solid reasons…

1. Find funding opportunities.  When you’re plugged into what’s happening in the market, you can source new opportunities for funding: new banking products, investment trends that could lead to increased interest in joint venture opportunities, or changes in lending regulations that might affect the accessibility of money.

2. Find “hidden gems” of opportunity.  Is there a new development going up in a given area? What about shifting zoning regulations?  Is there a major employer coming into a certain neighborhood?  The more familiar you are with what’s happening in the local economy, the better you’ll be able to predict which areas are poised for explosive growth…so that you can buy properties in those areas before the prices soar.

3. Avoid costly mistakes.  Knowing how to read the market will help you avoid costly mistakes and mitigate your risk of serious losses.  For example, many savvy investors predicted the financial crash of 2008 several months before it happened.  This is because they understood how to interpret what was happening in the market and made smart decisions to prepare before the bottom fell out.

Real estate investing requires both an understanding of effective real estate techniques AND a solid grasp on broader economic and market factors.  The more you understand what’s happening in the market, the more profitable your investing will be.

Which market information sources do you watch most closely?

For more information on how you can escape the rat race for good and create lasting, generational wealth with real estate, download my FREE ebook, “How to Find Underpriced Properties: Secrets for Creating Wealth with Real Estate in ANY Economy.”  Visit http://StreetWisePropertyInvesting.com/Ebook.