When you started, how did you choose your target market?

Question

Probate lists, foreclosures, pre-forclosures, out of state owners etc....it seems there are a lot of different segments of the market to find potential motivated sellers, and a lot ways to reach them such as yellow letters, post cards, online postings and ads, bandit signs...and as someone who is brand new, with no experience and very limited advertising funds at the moment I feel a bit overwhelmed and confused with how to go about figuring out which market to target, and how.

What market did you target, how, and why?

Thanks!

What market did you target, how, and why?

Thanks!

Jackie Lange · Answer

Identify your BUYERS first.  Let them tell you what they are looking for, then go find it.  The advantage... you'll know you have a buyer when you find a great opportunity

Priscilla Z. · Answer

Hey Nancy, I use Listsource...

Nancy Carr · Answer

I have to get on the program for sending yellow letters.  How many of you use Melissa Data?  Or do you have a favorite provider for mailing lists?

Thanks!

Nancy

Arktavious Sally · Answer

Personally, I only wholesale in neighborhoods where there is alot of Investor activity and where my cash buyers want to deals. Most of my cash buyers are flip and fix investors looking to do deals in the first time buyer neighborhoods where they are likely to turn a profit.

Priscilla Z. · Answer

@Marcus Brown - I don't worry on concentrating where cash buyers are buying because in reality if you have a good deal someone will buy it.  Inheritance mailings have worked for me, quite well actually.

I don't know how much funds you are talking about when you say "limited" but you can do a few cheap things...

1.  Buy some blank bandit signs and hand write them.  I only pay $1.75 for mine, that includes the stake - put them out Friday, pick them up on Sunday, you should be able to get all of them back - reuse the next weekend.

2.  Search through your property records and look for absentee owners.  Write them yellow letters.

3.  Find a great realtor that is investor friendly and ask him/her to give you a list of expired listing.  Mail yellow letters.

And as both Ned Carey and Landon S. have both said - keep trying.  You have to dig through a lot of dirt before you get to gold, just don't give up 3 feet before you make it to the gold :)

Arktavious Sally · Answer

Marcus Brown Find out where cash buyers are doing deals and the type of properties they're buying. You can have an R.E agent do a search for cash sales in safe first time home buyer neighborhoods. These are usually the areas that you should be targeting.

Rich Weese · Answer

Carolina E – I'm curious about your response in this thread. If Marcus is researching an area where there are mostly cash buyers, how does he get in on those deals with relatively little cash? Or are you strictly looking at it as a wholesale involvement? Just curious. Rich

Carolina E. · Answer

Marcus Brown I would also like to add possibly trying to find where there are the most cash buyers. And you can drive these areas like Ned suggested to find vacant properties.

Landon S. · Answer

I started out in an area I was most familiar with and had the most knowledge about.  For me, that was college campus rentals.  For others it may be First-Time Home buyer neighborhoods, bank-owned properties, mobile homes or apartments.
If you are starting out with marketing I agree with Ned Carey, test and measure your results.  That's the fun part about marketing, you are free to try whatever you think would reach potential sellers needs, be creative!

Good Luck

Ned Carey · Answer

Marketing is about testing. You try something examine the results and then adjust the plan.  Since it takes many leads to look at before you get your first deal it is important to keep trying one method long enough to have an effect.

If you have limited funds, you can do methods that take more labor and less money. Tracking Down owners of vacant houses takes a lot of work but doesn't necessarily cost a lot of money. Calling owners is generally cheaper than mailing. It is also more effective but it takes more work.

Hopefully this give yo some ideas. Good luck - Ned