All Forum Posts by: Josh Stout

Hey @Christopher Pride

In terms of recommending an area or specific contacts there, I think that has to be a "you" decision. If you want some criteria to pay attention to I would suggest to use your "I'd be down to live/move here" list as a base and then evaluate the market metrics to see if it's a strong investment opportunity. Selecting off investment criteria first could end up moving your family somewhere you don't like...and ignoring investment markers might move you to a dead end area. 

Here are some big picture things to look for in a market..it's focused toward wholesalers but the fundamentals still apply. Don't sleep on the new changes to Fannie's requirement for downpayment on 2-4 unit multi either. It's now 5% and the rental income from other units counts toward the underwriting. Good luck out there and feel free to reach out with any questions!  

Active Market

• High and/or consistent transaction volume. Cash transactions are a good indicator of investor activity.

Population/Market Size

• The smaller the area, the smaller the pool of sellers/buyers. Super dense urban areas are a different animal as well. Populations in the 300-500K range are generally a good sweet spot.
• Roll multiple smaller cities/towns up into one larger “target market” if you need to

Reasonable Property Prices

• Staying at or slightly below median market value increases your odds of success since there are more buyers/sellers
• Higher price points can be very lucrative but typically require more time/money for marketing

Growing or Stable Economy

• Target market should have positive economic growth expectations.
• You may be able to find deals in areas that aren’t doing well, but if you can’t dispo them it won’t matter

Diverse Pool of Buyers

• You’ll mainly be selling to investors, but having a diverse buyer pool gives you more options in terms of exit strategy

Regulatory Environment

• Low regulatory markets can help keep things simple
• Keep in mind that regulations change quickly in many areas, so it's important to keep and eye on your markets for change
• Things to consider; rules regarding holding a license as a wholesaler, probate laws/processes, STR rules, etc

Strong Rental Market

• Think from the end buyers POV. If the rental market is not favorable, you’ll likely see less investor activity and therefore less potential buyers

Availability of Data and Resources

• Access to market data and networking resources can be a huge benefit
• Consider things like; access to county/court data, is it a non disclosure state, etc

Community and Economic Trends

• Understanding local trends/issues can provide crucial insight into your target market
• You can operate virtually, but it’s still important to develop expertise in your target market

*** Good market selection is not a guarantee of success. When done well it simply helps remove or reduce obstacles that could make it harder than it needs to be to win.

Hey @Ray Choi

Generally the same marketing strategies work regardless of the market...just with some market specific tweaks. It's going to depend on what you're willing to spend in terms of time, money and effort. At the end of the day there are people in the bay or anywhere else with SEO, some with direct mail, some with FB marketing, some with cold callers and text blasting, some with other things like TV and radio ads. It's all going to come down to what makes sense for you and your time/capital budget. They all can work and the best results usually come from a combination of efforts. My main suggestion to anyone, in any market is to pick the strategy that you can stick with the longest because it can take some time to get those first deals, especially in higher priced markets. The second thing I'll advise is to pick a marketing method that you can do in a MEANINGFUL way. If you're only able to send 500 pieces of mail a month you are going to be hard pressed to get a deal in any reasonable amount of time because it's a numbers/volume game. PPC is the same way...if others in your area are spending $2500/month on ads and you can only afford $300, it's not going to be effective and you'll get frustrated. 

Hope that helps a bit even though it's general...good luck!

 Congrats on the transition to full time! How have things been going for you? 

@Ray Choi welcome to the game! I don't have any personal experience with Thatch's program so I won't comment on it. I will say that wholesaling, BRRRR and house hacking are phenomenal ways to get in the game and can be very capital efficient. That being said, they all have their pros and cons...and no matter what anyone says, there is no such thing as a free lunch or "no cost investment"

Markets like the bay area can definitely be competitive, and they can be equally rewarding as well. Wholesaling for example will likely yield lower total transaction volume than low priced markets, with a higher marketing expense as well....BUT, they will also typically yield much higher payouts per deal so it can be worth it. 

Regardless, you're in the right spot and asking the right kinds of questions...if you have anything specific you want to dig deeper into, feel free to reach out directly. Until then, happy investing! 

 Hey @Anthony Taylor I like where you're head is at, and generally speaking you've got the right pieces of the puzzle. The size of your team will obviously depend on the size of your operation...and will scale in time. As for systems and software stack, there are a ton of options and we can go into specifics if you want...in general though you'll need the following

Datasets like Propstream to build lists
Marketing channels and systems to generate leads from said lists
CRM to manage leads
Acq/Dispo to run leads through the systems
Website/online presence for credibility with sellers
Admin stuff like docusign, google suite,etc to manage the details

That's a pretty high level overview...obviously there are lots of details to running any business. 

As for payroll and compensation for the team...again, that all depends on your setup. Could be as simple as 1099s and direct invoices or as complex as tiered incentive structures and an official payroll with payroll taxes and all that comes with it. 

I know this is a high level look, and I hope it helped. Feel free to hit me up directly if you want to dig into some specifics. 

Hey @Arionna Knox welcome to the game! Fellow vet here and located not too far away in Austin. Wholesaling is a great way to get started, but don't let the TikTok gurus fool you, there are no free meals in business. Jumping into a house hack like @Jason Allen said above is another great way to get in the game. (Especially if you can get into a 2-4 instead of just a duplex. Lots of options of course...and education is your best friend. Feel free to reach out directly...I'm more than willing to jump on a call sometime if you'd like. Happy investing! 

 Anytime boss, glad to help! 

@Shawn Parsh

One of the best things about the time we live in is how much information is available to us to learn from. Youtube is the second largest search engine, and has videos on basically every subject known to man. This includes endless content on how to better create content. My advice is to do your diligence and learn the craft as best you can. It can be helpful to have that old fashioned sit down like you said, but it's no longer necessary. 

If you want to learn how to best edit and post videos for your niche/business/market...start by searching for those things and consuming the info you find. You'll be surprised how quickly you'll reach a solid understanding. 

I agree with @Eliott Elias on the points about being genuine and natural. People connect with people, not production quality. Some general tips in that same vein are to make your content likable, relatable and shareable.

One technical piece of advice I'll pass along is that audio quality is more important than fancy video quality. 

I know this was general, but I hope it helps...I'm always around if you have more specific questions. 

Good luck! 

@Ian Farmer 100% what Hector said above. Full scale results don't come from half assed efforts. Pick the strategy, learn the game and then execute. I'm sure as you dig into the world of wholesaling you'll come up with lots of questions...feel free to hit me up if you need clarity on anything in particular. Until then, happy holidays and good luck! 

@Bryan Fleming I completely agree with what Joe said above about getting involved with your local meetups. You'll also be able to fill a lot of knowledge gaps here on BP and other places online. (gotta love the University of Youtube). Word of caution though; there are many ways to win in this game and while the advice from a particular source might be valid, it may not be the best advice for you and you strategy. Without knowing more about where you are/where you want to be going, my best advice for you is to spend some time learning as much as possible from many sources to better hone in your particular attack plan. Once you have that dialed out, then execute that strategy like your life depends on it. If you want to get into some particulars, feel free to hit me up, I'd love to help if possible.