Houstonians, How Do You Choose Your Marketing Area

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Houstonians, How Do You Choose Your Marketing Area

Brionne Moss
Investor · Houston, TX · Member since 2015 · 61 posts · 20 votes

Hello Fellow Houstonians,

I am new to BP just getting started in REI and have a high interest in wholesaling. Currently I am knees deep in listening to podcasts, reading books and forum posts on the daily basis. I have a goal to start my DM campaign somewhere in October or November of this year.

So my question to my fellow BP'ers, specifically in the Houston and surrounding suburbs, how do you all choose which area to market to? Houston is quite a large city from Richmond to Katy to Cypress to Pearland to The Woodlands. . .  and I can go on and on. Houses can range anywhere below 50K to above 900K.  

I've read a lot of mixed reviews on whether you should build your buyers list first or not. If I opt not to build my buyers list, how do I go about making this decision? I also plan to visit my local REIA's and meetups, but should I solely base the area I market to off the people I meet and where they say they purchase?

How did you choose which side of town to market to?

Did you realize a pattern with certain price ranges, schools, close to downtown that you had better luck with? 

Any prior experience results or feedback would be greatly appreciated.

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  • Sandra Gibson
    Katy, TX · Member since 2014 · 134 posts · 18 votes
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    I choose my own neighborhood. I drive around looking for signs like neglected lawns and other issues. I also watch for price drops and time on the market. I talk to people to see if they are motivated to sell. 

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  • Cal Ewing
    Investor · Calgary, AB · Member since 2014 · 182 posts · 32 votes
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    If you start a buyers list, put me on it! Message me for details.

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  • Brionne Moss
    OP
    Investor · Houston, TX · Member since 2015 · 61 posts · 20 votes
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    Thanks @Sandra Gibson

    I've read many people do that, my only concern is that my neighborhood and surrounding area is pretty much new builds. Based off research, I don't think I will find much luck  with homes that were purchased only 5 years ago. I live in Richmond which is very much so up and coming. Though I probably could try the older neighbors maybe 5-10 miles out. Thanks for your input!

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  • Brionne Moss
    OP
    Investor · Houston, TX · Member since 2015 · 61 posts · 20 votes
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    Most Definitely @Cal Ewing!

    I will be sure to reach out to you when I get knee deep and feet on the ground.

    Thanks!

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  • Dennis Rodriguez
    Wholesaler · Katy, TX · Member since 2013 · 213 posts · 109 votes
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    Brionne,

    Don't waist your time putting together a Buyer's list. When you have a deal post it here (Marketpace) and at your local REIA (RICH Club for example) and you will get a buyer if it's a true deal.

    I'm currently working with a group of 4 investors and they buy everything that I can find for them that is a true deal. I'm not a wholesaler, I just pull deals from the MLS and get my Realtor's commission.

    Good luck,

    Dennis

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  • Brionne Moss
    OP
    Investor · Houston, TX · Member since 2015 · 61 posts · 20 votes
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    Thanks @Dennis Rodriguez

    That's pretty much been the consensus based off multiple REI's. Thanks for that info!

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  • Sandra Gibson
    Katy, TX · Member since 2014 · 134 posts · 18 votes
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    I lived in Richmond for several years and one of the problems they have is some of the properties were rezoned in the 100 year flood. This is mandatory flood insurance required the the mortgage company which adds an additional  costs to the owner or renter. The other problem is that there are a lot of foundations problems  if not a matter of if but when. This could prevent the property from being financed which is why the seller would be motivated to sell at a discount. Trust me there are a lot of properties that do not meet financing requirements…the list of issues are very long. It a numbers game, don't fall in love with the property fall in love with the deal.

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  • Brionne Moss
    OP
    Investor · Houston, TX · Member since 2015 · 61 posts · 20 votes
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    Wow @Sandra, that is really great insight. I've heard some things here and there about the flood zones but I am not well versed about it. I will definitely look into that and keep it in mind.

    Thanks again. 

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  • Account Closed
    Investor · Houston, TX · Member since 2014 · 35 posts · 13 votes
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    Sandra Gibson, Brionne Moss, Keep me in mind if you have properties for sale that will require foundation or other significant work. We have cash to close. We want the deals.

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  • Delles Simon
    RE Investor · Houston, TX · Member since 2015 · 26 posts · 8 votes
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    Quality thread, thanks for asking these questions Brionne!

    I drive for dollars in neighborhoods about 5-15 miles away from home.  I am learning and practicing DM and marketing techniques - I am in a very similar position to you.  

    Keep up the knowledge grind!

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  • Brionne Moss
    OP
    Investor · Houston, TX · Member since 2015 · 61 posts · 20 votes
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    Thanks @Account Closed. I will definitely put you on my list and be in contact.

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  • Brionne Moss
    OP
    Investor · Houston, TX · Member since 2015 · 61 posts · 20 votes
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    I appreciate the feedback @Delles Simon. How has the D4D been going for you? I figured I'd start before jumping straight into DM. Have you got any deals from it do far? Or any leads for that matter?

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  • Delles Simon
    RE Investor · Houston, TX · Member since 2015 · 26 posts · 8 votes
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  • Brionne Moss
    OP
    Investor · Houston, TX · Member since 2015 · 61 posts · 20 votes
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    Well @Delles Simon,

    I'm just starting out trying to get my ducks in a row. After all my reading, I figure I would do the following first.

    - Make Business Plan

    - Get Business Cards/Possibly Website/Set up systems such as Podio/Phone Number etc.

    - Attend Local REIAs/ Meet buyers and hopefully a mentor

    - D4D for awhile

    - If that doesn't work after 3 weeks to a month then my next thing would be DM

    I prefer to get a deal before I start DM so I have something to fund it with. It can get quite pricey and want to at least start out sending a thousand for a month. I'm gong to go with Michael Quarles strategy in the order he sends out the different type of mailers with different formats and messages.

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  • Account Closed
    Houston, TX · Member since 2015 · 55 posts · 4 votes
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    Cal Ewing could you send me your contact information so I can add you to my list? I currently have a couple of properties under contact.
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  • Account Closed
    Houston, TX · Member since 2015 · 55 posts · 4 votes
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    Let me know if you need any help. I also live in Richmond, Tx
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  • Joe Fairless
    Investor · Cincinnati, OH · Member since 2013 · 2k+ posts · 1k+ votes
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    @Brionne Mossgood luck getting started!

    0Reply
  • Delles Simon
    RE Investor · Houston, TX · Member since 2015 · 26 posts · 8 votes
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    0Reply
  • Dax Middlebrooks
    Spring, TX · Member since 2015 · 25 posts · 17 votes
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    great thread.  Looking forward to hearing good things from your actions Brionne.

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  • Leigh Ann Smith
    Manvel, TX · Member since 2014 · 309 posts · 127 votes
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    @Brionne Moss, read up on the flood zone thing, because it's a big deal to potential investors.  My husband and I won't touch a property that's in Zone A or Zone AE.  A cracked foundation is not a deal-breaker, but a flood zone is.  Cracked slabs are not too awfully expensive to fix unless there are cast iron pipes that have broken and rusted, termites, or big issues like that.  That's what a foundation guy told me anyway.  He also said that houses newer than 1975 usually have PVC pipes, not cast iron, and that's better.  But, as @Sandra Gibson said, that cracked slab makes the house worth a lot less, and the seller knows that.  

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  • Brionne Moss
    OP
    Investor · Houston, TX · Member since 2015 · 61 posts · 20 votes
    11y

    This is good information @Leigh Ann Smith.  I've been looking into and I am trying to avoid those areas. Do you all wholesale, flip, or buy n hold?

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  • Hector Perez
    Flipper/Rehabber · Houston, TX · Member since 2012 · 176 posts · 75 votes
    11y

    You choose your market area based on what you are planning to do, wholesaling, rentals, fix and flips, owner finance, etc.

    My suggestion when getting started (start in wholesaling) look at neighborhoods, built before 1980 near your house, narrow them by zipcode, then Drive and get address from vacant and distressed homes once or twice a week consistent for 2-3 months, 

    Send a letter or postcard to every lead you got at the end of the week, and do the same every week. try to touch every lead at least 6 times

    Also as you are driving call FSBO and for rent signs.

    Call Craigslist FSBO, or Zillow leads

    The two most important part of it is to do it consistent every week for 3 months, to see results.

    as you are closing deals, save some money and start doing Direct Marketing.

    Direct marketing today in Houston is about 0.5% to 1% calls and you need 25 to 30 leads to close a deal, so do the math, you have to send over 3000 letters/postcards a month to close on a house, so save your hard earned money and try to focus on what I mentioned above

    Cheers

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