I have been reading and listening to the podcast here on BP. How can I begin to select an area that would be good to invest in? What factors should I look at to help narrow down an area?
Jose, start in your area; this will be the easiest. Look for things like good school districts low crime areas etc. Do research and get a zip code map, study your areas and understand them before even going out (or marketing) and hunting for properties. To be successful, you have to have a plan in place prior to starting and ensure you follow-through "Do what you say you will." I have worked with other Investors/Rehabers/Wholesalers who jerk you around because of they have a list and want to get as much out of the property as possible. As I understand everyone want to make a living if you don't provide value to other investors, then you will not be successful.
David, when you say my area, do you mean zipcode or the nearest surrounding zipcodes? I definitely want to be ethical.
Would love to hear opinions from others.
@Jose Diaz The key to becoming a successful wholesaler is to only put properties under contract in areas that your cash buyers want deals.
Find a realtor in your area and have them pull all cash sales in last 30 to 60 days. That will show you what areas the buyers are paying cash in. When you find where most of the sales are, you go take over that area with your marketing and mailing.
@Jose Diaz starting close to you or even areas you know is best - because you are not driving as far to make the deals and you probably have a good idea of what the areas are like. You should ensure you know where people are doing cash sales, but you also want to ensure you get in to areas that are A and B areas. Getting zip code maps driving areas and marking what has potential and marking them on your maps. Bring cards and if you see something that catches your eye, leave a card on the door; ensure you write the address down for further research; investigate county assessor office etc.
Doing your homework prior to just slamming marketing out there and getting to know people is just another avenue to getting deals. I tend to work areas I know I want to buy; hot areas and great school districts etc. Come up with a good plan and modify from there; keep learning and listening to Podcast and read forums on BiggerPockets and other sites as well. The idea is not to use just one method; idea, trick to getting your properties; sometimes you have to be creative. These are just some of the things I have tried; some work some don't but you learn; and then some that didn't work the first time worked on off chances.
Also by working with Realtor(s), contractors, other investors will help build relationships. Join REIA groups in your area; attend investor workshops, etc - networking is critical in this business and the more people you meet the more you can ask for help or advice on things as well. Take action!
Keep your head up and I hope you have an excellent future!
@David P. Thank you for the advice. I will keep it simple and close to my neighborhood for now.
Good idea @Jose Diaz and as you get experience you can branch out; stay focused and dedicated to areas close to you and you will become successful. One other thing I forgot to mention is keeping your business cards with you at all times. Keep a few in your wallet and car and when you are filling the tank, talk to the person at the other side of the pump. Get your 30 second elevator pitch down and test it out there. I'm not real good at this myself, however it builds confidence when when you actually have an opportunity it will be easier to talk to the other person.
One last piece of advice is to practice, practice, practice and when you think you got it down, practice again! I find people are more comfortable with individuals who are knowledgeable and know their stuff but don't come across as arrogant. Sometimes a fine like depending on the deal; but this is where practice will be critical to your success!
@David P. Thank you for the good tips and the motivation. I really do hope to make something of this real estate world. I know my financial freedom is here.
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