Residential Real Estate Agent · Fort Worth , TX · Member since 2012 · 211 posts · 152 votes
13y
As a wholesaler, in the process of establishing my business, I wanted to market to my “back yard”, in my case: Arlington, sections of Fort Worth & Mansfield. These areas are in close enough proximity to minimize drive time, which is an important factor for me at this time until I decide to expand.
From there you need to establish what variables fit your criteria for where you want to buy. Items such as: Months of supply housing inventory, square footage, rent rates, tax assessed values, school districts, crime, DOM, year built etc. are all variables that can all assist you in finding your target market area. In my case, looking to wholesale high equity houses, you want to find the median house value in your market area, and play at or below that level. For example a 3/2/2 brick house with an after repair value of $120,000. Emphasis on the aforementioned variables can change greatly depending on what your exit strategy is as well. For instance, your target market area will change if your exit strategy is owner finance versus a retail flip.
Once I established the big picture of my target markets, I began to break it down even further by zip code and subdivision utilizing various software and database programs. This helped to pinpoint exact subdivisions within my target market area.
For Example: This is a map I produced as a byproduct of database queries and software that shows specific subdivisions within Arlington. The map color codes the subdivisions by median tax assessed value.
Developer · Garland, TX · Member since 2008 · 8k+ posts · 4k+ votes
13y
This is a continuing evolution for me. 4 years ago, I was OK with buy and hold across six counties east of Dallas. Now I'll buy and hold in 2-3 of those counties, and only in certain school districts within those counties. In Austin I pretty much focus on a single zip code for new construction because it's easier to become an expert on a small area.
Residential Real Estate Agent · Fort Worth , TX · Member since 2012 · 211 posts · 152 votes
13y
As a wholesaler, in the process of establishing my business, I wanted to market to my “back yard”, in my case: Arlington, sections of Fort Worth & Mansfield. These areas are in close enough proximity to minimize drive time, which is an important factor for me at this time until I decide to expand.
From there you need to establish what variables fit your criteria for where you want to buy. Items such as: Months of supply housing inventory, square footage, rent rates, tax assessed values, school districts, crime, DOM, year built etc. are all variables that can all assist you in finding your target market area. In my case, looking to wholesale high equity houses, you want to find the median house value in your market area, and play at or below that level. For example a 3/2/2 brick house with an after repair value of $120,000. Emphasis on the aforementioned variables can change greatly depending on what your exit strategy is as well. For instance, your target market area will change if your exit strategy is owner finance versus a retail flip.
Once I established the big picture of my target markets, I began to break it down even further by zip code and subdivision utilizing various software and database programs. This helped to pinpoint exact subdivisions within my target market area.
For Example: This is a map I produced as a byproduct of database queries and software that shows specific subdivisions within Arlington. The map color codes the subdivisions by median tax assessed value.