Know who'll buy it before you sign it.
A great-looking deal in the wrong area for your buyers is a deal that won't sell, and you're the one left holding it. Neighbourhood class shows you the FFIEC income grade for the property's census tract, so you know what kind of area you're in before you sign anything. That tells you which exit makes sense and which investors to call, so you match the deal to a buyer who wants it.
Why it matters
- Know the class before you commit. The grade tells you quickly whether the area fits the deal you have in mind.
- Send it to investors who buy there. Align your exit and your pitch with what actually trades in that class of neighbourhood, so the deal reaches a buyer instead of sitting.
- Don't get stuck with a flip nobody wants. A flip in a D tract is less likely, but a landlord, a light reno or a BRRRR may work well.
Steps
- Open the property in the Deal calculator and scroll to Neighbourhood class, just below Location intel.
- Read the tract's grade, from A to D.
- Check the median family income and the % of area median income to see how the tract compares with the wider area.
- Look at the bordering grades. A tract that borders stronger areas can tell a different story than one surrounded by weaker ones.
- Toggle the A–D tracts overlay to see how grades change from block to block around the property.
- Use what you learned to choose an exit in the Strategy calculator and to decide which investors to send the deal to.
Good to know
- The grade comes from FFIEC data. It's not a rating by AggREIgator.
- A lower grade doesn't mean a bad deal. It means a different buyer and a different exit.
- Know your investors and the deals they do. You'll find more on that in Disposition's Investor Find.