Your target audience for FLIPS?

Question

Hello i am starting a corporation to flip 5-8 properties a year, i done two so far.

I am in California focusing on San Diego and its surrounding areas.

Does anyone flip houses with a target audience in mind?

If so who do you focus on?

Thanks!

(i need this to work on my logo)

David Niles · Answer

The area you buy in, dictates your audience.  Thats why we stick to the more affordable homes to flip, much larger audience.

J Scott · Answer

I'm not sure how you can be successful in this business if you don't target a specific group of buyers.  That said, the group you should target is the group that is mostly likely going to provide your ultimate buyer -- that can be determined by examining sales histories in  the area.

Steve Wilcox · Answer

You need to have your ear to the ground, and try and find out who is buying in that area. REaltors can be helpful, as can the sales price of average homes in your target area.

If you are looking at 600-1mil houses odds are you are not going to be catering to first time buyers.

You must know your customer in order to be able to deliver the product they want to buy. Why waste money adding things people don't really want or expect to have? Alternatively leaving things out or under improving a property in a high end market place can also make your property a tough sell. If

Amie D. · Answer

I agree that you have to know the area and how the market changes as well with the economy in general. In many areas (my current - Seattle - and last one - Cincy- and what I've heard of Denver, included) houses in the under 100K price range are running out of inventory, while the middle- to higher-end homes are still sitting for a long time. I've found this can also change by the neighborhood and sometimes even street level pending the area's reputation and future development.

James Vermillion · Answer

I live in a smaller market than many people here, so we have had to broaden our target audience as we have progressed.  It is almost impossible for us to pick one price-point and focus on rehabs in that range solely, so we basically have to follow the deals and adapt our rehabs based on the change.  In fact, we have flipped a small townhouse, a historic duplex, a larger very nice home and several middle of the road houses.  While it may not be the most efficient way, it has worked for us and helped diversify our skills as investors.

With each of these types of properties we also had to change how we market the properties. Again, flexibility and being able to adapt was key for us.

John Mireles · Answer

I don't know that there's any one source for figuring out your target demo. It really depends on so much - location of course being the main factor. You really have to know what's happening in the areas where you're buying. Some areas are on the decline. Others stable and others up and coming.

What other development is taking place around you? What's the larger plan for the community? Is the area becoming popular among the young and adventurous? Is the area predominantly Hispanic?

Marketing a property in North Park is going to be a completely different experience from marketing one in National City. North Park is going to be more of an upscale experience to the yuppie/hipster crowd while National City is going to be more of a budget minded crowd. It certainly helps to be involved with the community where you're working so you know what's going on. In the past, I sat on the Business Improvement District board where my studio is located. I also sat on the redevelopment committee so I knew who was doing what and when - and I knew it before most other folks.

For example, knowing that hip restaurant was going in at a certain corner means that a similarly hip clientele is likely to be attracted to that area and more growth would take place. I don't know that you can just sit back and think that looking at some reports or numbers is going to give you the ears-to-the-ground kind of information that gives you a competitive advantage over everyone else in the game.

Omar Jaramillo · Answer

"The area you buy in, dictates your audience. Thats why we stick to the more affordable homes to flip, much larger audience."

Yea i agree with you 100%, the only problem in San Diego is that the more affordable the houses are the more intense the competition is, through REO's and auctions that is.

Omar Jaramillo · Answer

"I'm not sure how you can be successful in this business if you don't target a specific group of buyers. That said, the group you should target is the group that is mostly likely going to provide your ultimate buyer -- that can be determined by examining sales histories in the area."

J Scott what are some proven and effective methods of extracting the sales history data for my areas? that you might have used or heard of

Your target audience for FLIPS?

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