How to determine the market/occupancy level of competitors
Any other way to gauge the market besides secret calling competitors? I've called a few and getting vague answers of "a couple", "a few", "several", and etc of units available. I'll call a few more to see if I have any better luck. Maybe my story is not good enough....
I'm underwriting for a severely mismanaged facility. Physically it looks fine but the management of it is not there. Financial occupancy is only 25% (physical occupancy is 44%) and the people there are paying 25% to 50% below market. The market is 25 sqft/capita within 3 miles and 27 sqft/capita within 5 miles. It's a small town of about 19K people with median HH income of $41K (3 miles) and $46K (5 miles). Owner spending only a few hundred dollars per YEAR on marketing and no website. Basically, not paying attention to it at all. It could still be a deal if I can get it to 75% occupied. I just need to know how the competitors are doing and it's not over saturated.
I know TractIQ can now show occupancy and financial. Would be nice to have that info but that's only available with their Pro+ level and likely out of my budget. How else can I gauge the market in that town?
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Tommy Xaysongkham
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How to determine the market/occupancy level of competitors
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