Neighborhood Investment Rating
Where to invest is often the question real estate investors struggle to answer, which is unfortunate since location can make all the difference on investors' returns. Solid investment properties can be found all across the United States, and to help you easily assess these neighborhoods remotely and without familiarity to the area, we’ve developed the Neighborhood Investment Rating (NIR).
What is the Neighborhood Investment Rating
The NIR evaluates a neighborhood based on a variety of economic, environmental, and demographic characteristics in relation to other neighborhoods locally and nationwide. The goal of the NIR is to help you quickly identify the ideal investment market that’s right for you and in line with your financial goals, without ever leaving your home.
We gather specific data points about every neighborhood via public and private data sources, like US census and IRS
Evaluate the Numbers
The data collected is weighted using our proprietary algorithms and models to generate a unique grade for each neighborhood.
Rank & Grade
All neighborhoods are then sorted into five rankings from A+ to D, depending on the neighborhoods correlation to risk and reward. To simplify our millions of data points, INVESTimate® has developed an effective rating system. When looking at investments, all neighborhoods can be measured in a risk/reward scenario where the higher the risk the higher the reward.
Vetting the NIR
Just like we tell our investors, we did our due diligence on the NIR and continue to vet the model as it evolves. Here are a couple of ways the NIR is validated:
Local Experts – Our on-the-boots Investment Location Managers (ILMs) verify their territories and NIR in their locations to ensure it is working efficiently.
Performance Metrics – We take a look at multiple correlated risk-and-reward factors to see how the NIR neighborhoods react in comparison to predictive trends. For example, median home prices and rent tend to be higher in A+ neighborhoods than D neighborhoods.
Data Driven Location Intelligence
Real estate investing can be exciting and profitable, and knowing how to properly select neighborhoods that offer a safe mix of risk versus reward can be difficult. Using the power of data science and analytics, our team here at INVESTimate® looks at numerous data points to determine which areas will present the highest returns on investment.
We start by looking at large scale metro areas across the U.S. and then qualifying them down to specific neighborhoods. From this level we then have a set of select criteria that we use to help us choose which investments will be the most profitable in the area.
By starting with properly analyzed data and applying the criteria listed above, we present our customers with pre-vetted properties that are tailored for their financial goals.