How do you really decide where to start. I understand its good to start where you live. But for me I live in a high priced area. If I find deals they would be to big for me to start with.
So how to pick a good area to start in??
Is the idea just to find successful investors and find out where they are buying at?
Are you looking for wholesaing, rehabbing, renting? it varies based on what you intend to do. I picked my area based on the price range, age of the neighborhoods, and distance from my home.
I mainly farm 4 zip codes near me, but I buy outside my area if they come by. I just don’t chase them.
I wanted to wholesale which I understand its good to see what areas investors are looking for. Also do some rehabs. I know it helps to know the areas the successful investors are in, but I also wanted to make sure im not a small fish in an already big pond.
I know its a learning process and Im just getting started going out and checking out areas. Theres so many I just want to focus because I can see how you can be all over the place.
I guess it just seems if you pick 4 zip codes, what if nothing ever happens there? Highly unlikely I know, but I guess again its just getting out and seeing whats going on.
when you start, it will be hard for things to happen and usually it is not a product of the target market, but the learning curve and knowing how to find deals.
You need to find the average home prices and work below that price range. This guarantees the most sellers and buyers.
Find older homes, not newer neighborhoods. Newer neighborhoods have a less of a chance to need repairs. I tend to be in the 20 year old range, but I only do light rehab not major rehabs.
Get a good marketing plan going… Bandit signs works, how are you planning on finding these houses?
You really do not need large area. My houses mainly come from 2 zip codes, so do most of the calls. You may even want to start with a single neighborhood not just a single zipcode.
Don’t worry, there are endless supply of motivated sellers out there. If you feel you are not getting anything from that neighborhood, then move to another. The problem with over expanding your market is that you may need bigger marketing budget. If you concentrate on a smaller area, you can get bigger bang for the bucks.
The main thing you will notice when you start is that you will not like most of the houses you will see because they are not the type of houses you want to live in.
Then you will be afraid of certain houses because you may not know how to estimate the rehab. What will a foundation repair cost for example? paint? repairs?
Then how to negotiate with the sellers, or even talk to them to begin with.
By concentrating on one neighborhood or zipcode, you will gain that experience quickly without wasting all your marketing budget. All it takes is viewing few houses and talking to couple of sellers and you will feel much better. Then you can decide to expand your market.
That makes a lot of sense. Thank you!