One thing that most real estate investors waste a lot of time on is not focusing on a specific target market. However, some schools of thought argue you can buy houses nationwide and that you do not have to be limited by the market.
This article seeks to address both scenarios and hopefully allow you to focus on what works best for maximum profits.
When I started investing, my very first deal was almost one and a half hours away. Due to my lack of experience, I did not pay attention to where the properties were located when I sent out my mayketing materials. Even though Dallas Fort Worth is a huge market, I figured it was a good target.
I had to show the house wholesale real estate investors. It was still occupied, so I could not just let them in.
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.
You will be surprised how many deal you can find around you if you target a particular market.
In my market, I do not look at deals more than 20 minutes away unless they are pretty good.
Choose an area where you have little stress in travelling and where you can comfortably manage a deal from start to finish. It does not matter if you are wholesaling, retailing, rentals, etc.
Choose a specific farm area and stick to it. You can expand with time once all your systems are in place.
What about virtual real estate investing?
It may sound easy and 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 only buy properties I can see and recommend you do it this way too. Stick with the simple deals you can handle and grow with the times as you gain more experience in real estate investing.
One more thing about focus - as you target your market, target the type of properties, such as wholesale deals, rentals, lease to own, subject-tos, etc. You can easily focus on neighborhoods and price range for best results.
Your marketing method needs to be well targeted both on the internet and direct mail such as letters, post cards, etc. In both cases, you must have a real estate investing website that runs your business, increases credibility and tells your story for you.
This way, your real estate investing business will succeed more by spending less time money and effort to close more deals.
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.