Should Real Estate Investors Buy Properties In A Specified Target Market?
One thing that most real estate investors waste a lot of time on is not focusing on a specific target market. However, some real estate investors support virtual real estate investing where you can invest nationwide without seeing the properties.
This article seeks to address both scenarios and hopefully allow you to focus on what works best for maximum profits.
I got my first deal one and a half hours away when I started investing. I marketed without regard to where the properties were located. Even though Dallas Fort Worth is a huge market, I figured it was a good target.
I had to physically show the house to other real estate investors who wanted to buy it as a wholesale deal. I could not give a lockbox code because it was not vacated yet.
I visited the house 9 times in total and spent about 40 hours driving or at the property. Boy was I relieved when I sold it!
There are always good deals where you live. This includes even if there are a lot of real estate investors in the area.
Once you target a specific geographical area and price range and focus your marketing there, you will be surprised how many deals you can do in that area.
Unless a deal is pretty good, I rarely drive more than 20 minutes away.
Choose a particular area where you can manage a deal from start to finish with little stress. It does not matter if you are wholesaling, retailing, rentals, etc.
Just target a specific farm area that you are comfortable with and stick to it. You can expand with time once all your systems are in place.
What about virtual real estate investing?
Sometimes you may think it's possible and even convenient to buy properties you have not seen. This could probably work in partnership with other real estate investors, and probably enable you to buy properties nationwide.
I never buy properties I do not see and recommend you do not do it. Work with simple straight forward deals you can handle and grow your real estate investing business as time goes.
Also important is to focus on the types of properties you buy - wholesale deals, rentals, lease to own, subject-tos, etc. It helps you focus on neighborhoods and price range for better results.
Your marketing method needs to be well targeted both on the internet and direct mail such as letters, post cards, etc. Whichever method you use, it is important to have a real estate investing website that tells your story and runs your business.
Your real estate investing business will succeed more because you will be able to do more deals spending less effort, time and money when you focus.
In order to run a success real estate investing business, it is necessary to automate most aspects of your business, increase efficiency so you spend less time, money and effort while closing more deals. A lot of real estate investors have achieved this with database driven real estate investing web sites that also automate most tasks of real estate investing.
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