Targeting Houses/Neighborhoods

Starting Out
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Targeting Houses/Neighborhoods

Chris Speights
Real Estate Investor · Member since 2009 · 45 posts · 4 votes

This question is exclusive to wholesaling, but is a "starting out" question...so, posted here. Please move if needed.

When getting ready to find properties, do you guys find it better to market in general (basically anyone that may have a home they want to unload can contact you) or is it better to target neighborhoods or zips?

Just curious...marketing in general (ie bandit signs or CL postings, etc) seems like you would have to weed through too much stuff.

On the other hand, targeting a neighborhood or area seems like a lot more work...not afraid to work, just saying it's a lot more driving, mailing postcards/letters, etc...

So, is one better than the other, do both work, do wholesalers typically try to do both? I am just trying to be as efficient with my time as possible, but be mindful of my budget I am working with...not sure if there's a way to do both of these things at the same time, or not.

If you "target" areas, how do you do this? For instance, I live in (around) Houston. Obviously it's a large city. How do you decide that neighborhood b is a better place to focus on that neighborhood a or c?

Am I overanalyzing this? Does it matter? I mean, is the goal to generate 10,000 calls and hopefully 10 of those deals work? Or is it better to target 100 houses and hope 10 of those work?

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  • Ken Spohn
    Real Estate Investor · Phoenix, AZ · Member since 2008 · 5 posts · 8 votes
    17y

    Chris,

    The most import thing is to take action! From your questions I can tell your not sure what direction to take, and a confused mind always says no or does not take action.

    From the 100+ properties I have wholesaled, I have never marketed to sellers. Wholesaling like most other Real Estate is all about networking.

    Most of the properties came from referrals. Meaning everyone that I came in contact with I made sure they new what I was looking for.

    My advise would be to find the top wholesaler in your area and become a bird dog for him. This will do two things. First, you will get some cash coming in which creates momentum. Second, you can learn from him/her and what is working and is not.

    The top wholesalers are the top for reason. Find that out and you'll be very successful.

    Wish you the Best!

    -Ken

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  • Chris Speights
    OP
    Real Estate Investor · Member since 2009 · 45 posts · 4 votes
    17y

    Thanks for the reply and information, Ken. The confusion thing holds sooo true. I honestly feel I am past that, though. At least past the fear. I am very ready and willing to act. I was just thinking there would be a "formula" of how to determine where you're going to attack. I might be overthinking it...don't know...

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  • Jason Simpson
    Real Estate Investor · Norman, OK · Member since 2009 · 23 posts · 1 vote
    17y

    Chris,

    While I definitely agree with Ken, ESPECIALLY in regards to taking action, I'll have to say that I'm VERY partial to farming! I highly recommend finding a "target" area within about 10 miles of where you live..so you're not driving all the way across town. Farm the area, and I wouldn't stop until I get a list of at LEAST 200 properties. I also recommend using a digital recorder...it makes a lot easier to keep track as opposed to writing down each property.

    Second, another way to "backdoor" your wholesaling strategy by finding investors in your local REIA's that are ACTIVELY BUYING. Find out what areas they buy in, and what their target properties are...then you can focus your efforts on those and if the numbers you negotiate work, you should have it sold pretty quickly!

    Hope that helps,

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  • Chris Speights
    OP
    Real Estate Investor · Member since 2009 · 45 posts · 4 votes
    17y

    Great info, Jason. Thanks a ton.

    One other question to "piggy back" to your response...

    I live south of Houston about 20 miles, there's not a REI club "IN" my town...my guess is a good deal is a good deal and investors will come out of the city for them...I guess my question is, can targeting an area outside the city still be equally as profitable?

    Oh, I love your site, too...very nicely done!

    Chris

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  • Jason Simpson
    Real Estate Investor · Norman, OK · Member since 2009 · 23 posts · 1 vote
    17y

    Glad you like the site :D

    To answer your piggyback...

    Yes, targeting an area outside the city can still be equally as profitable! A deal is a deal is a deal. Sometimes it's just easier to get it sold when there's a population to buy it.

    Although you still live 20 miles outside the city, I'm guessing that there are a probably investors involved in the local association that don't necessarily all live in Houston, but also in surrounding areas! Having been on the board of the Oklahoma City REIA for about 7 years, I'm well aware that we've got numerous people that drive sometimes even 2 hours away to attend the meetings. It's about the networking...and sometimes it helps to get the "if that guy can do this, then I sure as heck can!" factor! :wink:

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  • Chris Speights
    OP
    Real Estate Investor · Member since 2009 · 45 posts · 4 votes
    17y

    Perfect! Thank you again...this was my last bit of info I think I needed before I attempt to lock down my first property...so, I will post when I get my first deal under contract!

    Chris

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  • Jim Wineinger
    Real Estate Investor · ten mile, TN · Member since 2009 · 1k+ posts · 374 votes
    17y

    Being 20 miles south, I am going to guess you are somewhat close to League city or Missouri city.

    There are at least 3 REIA's listen on BP here at being in Houston.

    Try the closest one and you might be supprised at what you find.

    Clear Lake Investment Club
    Contact: Marilyn Smith
    Number: 281-335-3938
    Meeting Time: 3rd Saturday of each month, 8:00AM
    Meeting Location: American Title Company
    1325 Space Park Drive, Houston, Texas 77058
    Web: http://www.clearlakeinvestmentclub.com
    Membership Cost: $100/year


    or maybe

    Realty Investment Club of Houston - RICH
    Contact: Randy Steadham
    Number: 713-947-RICH
    Meeting Time: 1st Saturday of every month, 8:00AM
    Meeting Location: Hilton Hotel at the University of Houston
    4800 Calhoun, Houston, TX 77204
    Web: http://www.richclub.org
    Membership Cost: $130/year

    Or maybe

    Houston Association of Real Estate Investors - HAREI
    Contact: Jerry Davis / Roderick Lightfoot
    Number: 832-594-5488/832-724-7430
    Meeting Time: Every 2nd and 4th Saturday of every month
    Meeting Location: 2302 Fannin, Ste. 200, Houston, Texas,77001
    Web: http://www.HAREIONLINE.com/
    Membership Cost: $129.00/mo


    I hope one of these are somewhat close to you.

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  • Chris Speights
    OP
    Real Estate Investor · Member since 2009 · 45 posts · 4 votes
    17y

    Yeah, I have looked them up before...

    What I was wondering was are the investors in those clubs exclusive to the area(s) in which they are in.

    I am Pearland. My concern was if I go to the Clear Lake club, are they only investors in Clear Lake, or same with RICH...

    You all answered my questions, though!

    Thanks a ton.

    RICH and the Clear Lake club are both relatively close, RICH probably being the closest.

    Thanks again

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  • Jim Wineinger
    Real Estate Investor · ten mile, TN · Member since 2009 · 1k+ posts · 374 votes
    17y

    Usually in each club there will be members that are generally local AS WELL as those investors that will do the deal wherever they find them.

    So if it is possible, you might want to be members of more than one as that gives you the most opportunities.

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  • Chris Speights
    OP
    Real Estate Investor · Member since 2009 · 45 posts · 4 votes
    17y

    That would make perfect sense. Thank you again for the info!

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  • Account Closed
    Astoria, NY · Member since 2009 · 26 posts · 0 votes
    17y

    Hello everyone. Thanks for sharing. To me
    1. Finding a mentor is more important than anything else. It can save you from a lot of unnecessary run.
    2. Socialize.
    3. Work as bird dog initially.
    4. Read Books, articles, forum posts etc whenever you have a free time.

    Nick Brian.

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  • Alan Brymer
    Rental Property Investor · Richmond, VA · Member since 2008 · 90 posts · 8 votes
    16y

    If you're okay with getting leads from all over the city or county and wholesaling them, then run general ads like signs and classified ads.

    If you want leads from certain neighborhoods, then use targeted ads like flyers and direct mail.

    So really, just decide where the easiest place would be to find deals you could get a bargain on, or that need repairs, and where you would easily be able to find an investor to wholesale them to, then choose your marketing around that.

    Ask your buyers list what areas of ton are their favorite places to buy.

    I would probably run bot kinds of ads.

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  • Chris Speights
    OP
    Real Estate Investor · Member since 2009 · 45 posts · 4 votes
    16y

    That's not a bad idea, Alan, thank you. I guess I was just trying to figure out a formula that made sense. I work an hour from home. So, I am out the door by 6 and not home until 6 in the evening. I have a family, etc, so when I get home, it's not like I can just run out the door again.

    I typically have every other Friday off and off on the weekends. I think I have more to choose from in Houston because it's a large metro, just thinking maybe to start out, though, I should stay more local to my area. It will be slim pickings by doing this, but it makes the most sense to start off.

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  • Jacque Rivers
    Real Estate Investor · Member since 2009 · 15 posts · 0 votes
    16y

    Chris... you don't target houses or neighborhoods. You target distress. You are looking for problems to fix. You could choose the prettiest street to target but if there are no deals on that street, you're broke. Find the people ( & institutions) with problems and that's where you go.

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  • Chris Speights
    OP
    Real Estate Investor · Member since 2009 · 45 posts · 4 votes
    16y

    That's an interesting statement, Jacque. I don't disagree with it. But how do you target distress? Are you referring to just broad marketing versus targeting neighborhoods/areas?

    I have heard people talking about getting in with attorneys that may know of bankruptcy, death, divorce, etc...but, how do you market to an attorney? I mean, if you approached and said, hey, I want to profit from this guy's misfortune...what is the likely response?

    I don't know any attorneys personally, other than mine and he mostly handles wills, etc...he is money hungry however, so perhaps I could offer him a fee or something?

    Chris

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  • Jacque Rivers
    Real Estate Investor · Member since 2009 · 15 posts · 0 votes
    16y

    Hi Chris...distress leaves a trail. Yes, an attorney is one place to pick up that trail.

    Think of what you are solving. Explain that you solve XYZ. You buy and sell houses and it helps people solve XYZ. Do you know of anyone I can help this month who are going through XYZ.?

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  • Chris Speights
    OP
    Real Estate Investor · Member since 2009 · 45 posts · 4 votes
    16y

    That's great info, Jacque. Thank you. I will email the one I know right away and ask if he can provide any other names I could contact.

    Thanks again,

    Chris

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  • Jacque Rivers
    Real Estate Investor · Member since 2009 · 15 posts · 0 votes
    16y

    Awesome! Teach it forward...

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