In this video, I am showing you footage of me driving around my target market. After checking up on a rehab, I drive by a few rentals and a few houses that I have fixed and flipped.
If you are strictly wholesaling, then you don’t need to be out in the field since you are essentially flipping contracts to other investors. But if you are planning on buying rental properties, or fixing and flipping houses then you must get out into your target market and drive it on a weekly basis. Check out this video where I show you how you can do this using the app Deal Machine: https://www.lexlevinrad.com/driving-for-dollars-with-deal-machine/
Knowing your target market well allows you to see which properties are being sold to which investors and how much those investors are paying for those properties. Understanding pricing and the price per square foot that investors pay is critical because this is essentially your competition. If you are a wholesaler then this is your buyer.
For fixing and flipping it is very important to look at retail sales and to understand what houses that have been repaired and renovated sell for after being listed on the MLS. Being out in your target market allows you to look at these properties and walk through them if you have a real estate license. Walking through these properties and then keeping track of what they sell for also allows you to review sold comps to see where pricing is at on a retail level and where appraisals are coming in.
Start learning more today by watching my free training webinar on Fixing and Flipping houses by Clicking Here!
At the end of the day, as an investor, you need to know the maximum that you are willing to pay to purchase a property, and you need to know what you can sell that property for once it has been repaired. You also need to know how much it will cost you to repair the property. The more you are out in the field looking at houses and reviewing repairs and comps, the better you will get at fixing and flipping.
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If you are in your target market on a weekly basis, you will have a better understanding of your target market and the comparable sales because you will see it unfolding on the ground. You will also notice other things like more houses for sale (or less). Driving your target market is also a great way to build a crew of people to help you work on the houses that you are going to renovate.
Another added benefit is you will notice vacant houses with overgrown lawns that look like they have been abandoned. If you track down the owners of these houses, some of them will be your best deals. The best type of vacant property is the one that is not showing up on any lists that can be purchased and that is why these houses are often such great deals because other investors are not marketing to them.