How to choose the right area to practice?

Question

Just a little background to my situation: I have lived in Orlando for about 5 years but have lived in 4 very different and geographically separate areas within that time (college and apartments). I have been able to gather little knowledge about each area, but never dove deep into the community aspect of any of them. I now live in an area 40 minutes away from the city where I think there is growth potential.

Question: Now that I have obtained my Real Estate License I am looking to start settling into an area to focus on for both providing real estate agent services and later getting involved in investing. What is the best way to go upon choosing the best location to focus on?

David Hunter · Answer

Thank you!  :-)

Joshua Gorsuch · Answer

@ David Hunter, I'd say that's a great start for sure! BTW I really enjoy your website!

Joshua Gorsuch · Answer

@Maggie Lalor  Thanks for the very informative response! I am a numbers person as well so would probably see eye-to-eye with you in that aspect. When you started in this field did you jump right into helping investors? And if so, how did you go upon doing so? Are there any specific websites or tools you use to help you find the economic factors and % of expired? Thanks for all of your advice and knowledge!

Joshua Gorsuch · Answer

@Kevin Fox. First off, thanks for the response! Focusing on the retail part would be most beneficial I believe so that I can gain some experience and understand the real estate processes better before moving onto the investor side. Creating a good reputation is vital before I work with investors...WOM travels fast in that community I believe. As for the sub-market selection, here in the Orlando/Polk County area where I am looking presents the same types of diversity in which you speak of. Thanks for the advice! If you or anyone you know would ever need any help in the Central Florida area please feel free message me.

David Hunter · Answer

I say... go where the people are!

Maggie L. · Answer

I'd echo Kevin's advice to work in a niche that best fits your personality. I'm a numbers person which is one reason I really enjoy working with investors. A niche may be a geographic location - an area where you live and really love the lifestyle and community it supports, or you want to really get to know for investment potential. It could also be a type of client - investors, first time home buyers, second home/vacation. There are agents who don't have an obvious niche, but I think it's a lot easier to pick something to focus on when you're just starting. You may move on to something else, but it's an initial focus to get you started.

If you're trying to find a good location, one important factor is the type of agent you want to be, your niche. Does it fit well with the modal home owner in that community? Since you're also interested in investing I'd look at things like % of rentals and vacancy rates (if you'received thinking buy and hold), DOM and % of list as well as % of expireds (if you're thinking flips), as well as economic factors (major employers, age brackets in neighbors) and level of stability there, quality of school system (include charter and privates, if applicable), and walkability of neighborhoods. This would be importal information for your clients, as well as yourself. Spend some time on the MLS looking at the data, and you may find some trends that really make a location stand out.

Finally, personally I'd factor in geographic proximity. It's a lot easier to know what's going on where you currently live, and shorter commutes make life easier in so many ways. It shouldn't be the only thing you consider, but it shouldn't be ignored either. There's an agent in my office that has signs that say call and he can show you the house in 10 minutes - that alone is going to make him more memorable when competing for a listing.

Kevin Fox · Answer

@Joshua Gorsuch

Depending on your situation, there are a lot of different ways to narrow down your service area.

If you are looking to work with investors, target areas that are highly comprised of non-owner occupied homes.

If you are looking to work primarily "retail" clients, I would target the neighborhoods where you feel you 'fit in' best with the residence.  I don't know how it is where you live, but in San Diego there are drastically different personalities in the different sub=markets.  Finding one that you tend to get along with can be very beneficial.