What is a buy box and how complex are they?

Question

Hello,

my name is Oscarr and I relatively new Realtor but I want to one day become an investor. I am curious, what is a buy box? I hear that in a lot of the podcasts I have listened too and I have seen it in a ton of books/articles I have read. Is it as simple as I buy 3bed 2bath homes or is it more complex than that? I understand that this may be a very broad question but I appreciate any and all responses!

Tatum Littleton · Answer

Good question Oscarr! It can be as broad or narrow as you want/need it to be. Truett, in an earlier post, had a good example of a very specific buy box but it could get as general as a state or region of the country. As you are just beginning your journey and learning a lot, I would recommend getting as specific as possible when you are working on running numbers and getting familiar with the process and as you gain more knowledge and confidence you open your buy box to become more broad. And of course, it changes over time for what your goals are and what you want to do.

Good luck!

Ethan Gidcumb · Answer

Hey Oscarr! A "buy box" is what you consider when determining if a deal matches your goals. For instance, if I didn't care about anything about a property except that it must cashflow $500/month, and it does cashflow $500/month, then it works for my "buy box". Buy boxes can be different for everybody.

I hope this helps!

Oscarr Douglas · Answer

Okay, that makes sense. It sounds like there could be a ton of buy boxes and those buy boxes could change over time. I will need to take some time and really think about what I would want to purchase and why. I appreciate you being generous with your time and your willingness to respond.

Truett Kerby · Answer

Hey Oscarr, my understanding of a buy box in real estate is your own personal criteria that you use for your specific investing strategy. For example, my buy box is single family homes in the Wolfforth area in an A or B class neighborhood that will appreciate. Feel free to ask any questions and let me know your thoughts!