Introduction & Picking Your Market

Introduction:

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Notes:

Most people avoid doing deals in small towns…but not Larry. Larry is doing 5-20 deals/month in small towns.

Problems With Doing Deals In Large Cities (MSAs)

– Difficult for newbies to succeed.

– Too much competition. Everyone is chasing the big deals.

– You need savvy sales and marketing skills.

– You need a larger budget for marketing.

– Requires an extensive followup system.

Advantages In Doing Deals In Small Towns

– There’s less competition in small towns.

– You don’t need expert sales skills.

– You need less $$ on marketing and get a better return rate on marketing.

– Less complicated marketing. You can use 1-2 marketing methods instead of 5-10 methods.

– Can get LOTS of referrals

– Lower prices = BIG discounts. Buy houses for a small % of their value,

– Sellers are easier to work with.

– Can do deals over the phone.

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Notes:

– Don’t get caught up in analysis paralysis. Don’t spend more than an hour or two looking at statistics. Pick a market, and run with it.

Things to consider when selecting a market:

– How big is the MSA (a million plus population)

– How old is the city or town (older is better)

– Need a decent amount of inventory

– House prices (below the median)

– Distance from MSA (at least one county out from MSA)

– Moderate to flat appreciation.

– Do you have friends or relatives that you might want to go visit sometime who could be your boots on the ground?

Helpful Websites:

– DataUSA.io or Google.com. Population of the MSA.

– City-Data.com. Home sales and prices.

– Realtor.com.or Zillow.com Check inventory on a specific area. Local rent information.

– ListSource.com. See the amount on investor transactions

– BLS.gov. Identify unemployment rates.

– Census.gov. Percentage of renters in a given area.