"Everything doesn't have to turn out exactly how you planned in order for you to call it a success." - Neale Donald Walsch
Here's a question I received yesterday:
"Maestro, how do I best learn my market? I've read information about this and understand this is important, however, I have yet to have anyone explain this to me step-by-step."
Good question! I'm uncertain there is a step by step answer, however the following are a few things you can do.
1. Partner with a relator
This should be done regardless. Realtors are a wealth of knowledge about the local housing market. And, they could also provide access to the MLS, which is certainly a tremendous benefit for a wholesaler. A great trick would be to check out a property on Zillow.com. After you click on it, it would list several realtors that work that section of the city, as well as contact details. Don't be reluctant to call them up. Explain that you're considering purchasing a house in the area and wanted to know if they can offer some insight. When you know the average rate per square foot of an area or neighborhood, then you're good for a bit. The housing market is constantly in flux, so don't rest on that number for a long time. But, it should hold firm for a bit. After that, you could say, "The south side is going for $100/sq ft. The north side is $50/sq ft." And on and on and on.
2. Flip several houses
Absolutely nothing will take you further than actual experience. Although you may end up losing the deal because you fudged up the figures. At least now you know and can move forward with future deals confident in your knowledge of that part.
3. Pull comps
Go on Zillow, or Trulia, or even FreedomSoft, or the MLS or whatever and start typing in addresses in certain locations that you feel are perfect for flipping. Drive around the city and locate the much lower income places. Most likely you are already aware of these areas, unless you're a new comer to the city. When you pull the comps, you can see what they sold for. The wholesale flips are likely to be approximately half, or a fraction, of the retail sales. And so, if you pull 3 comps and two of them sold around $100k, with one at $60k, all within three streets of each other, you practically know what the ARV is, the avg p/sq ft and also what wholesale deals are selling for.
Now get out there and flip something!
P.S.
This is the absolute perfect time to get into wholesaling. The market has shifted. We're seeing double-digit gains in home value, and because of this, it's now a seller's market again! This is just like it was during the housing boom when we were flipping houses for $50k in profit per flip!
Here's a question I received yesterday:
"Maestro, how do I best learn my market? I've read information about this and understand this is important, however, I have yet to have anyone explain this to me step-by-step."
Good question! I'm uncertain there is a step by step answer, however the following are a few things you can do.
1. Partner with a relator
This should be done regardless. Realtors are a wealth of knowledge about the local housing market. And, they could also provide access to the MLS, which is certainly a tremendous benefit for a wholesaler. A great trick would be to check out a property on Zillow.com. After you click on it, it would list several realtors that work that section of the city, as well as contact details. Don't be reluctant to call them up. Explain that you're considering purchasing a house in the area and wanted to know if they can offer some insight. When you know the average rate per square foot of an area or neighborhood, then you're good for a bit. The housing market is constantly in flux, so don't rest on that number for a long time. But, it should hold firm for a bit. After that, you could say, "The south side is going for $100/sq ft. The north side is $50/sq ft." And on and on and on.
2. Flip several houses
Absolutely nothing will take you further than actual experience. Although you may end up losing the deal because you fudged up the figures. At least now you know and can move forward with future deals confident in your knowledge of that part.
3. Pull comps
Go on Zillow, or Trulia, or even FreedomSoft, or the MLS or whatever and start typing in addresses in certain locations that you feel are perfect for flipping. Drive around the city and locate the much lower income places. Most likely you are already aware of these areas, unless you're a new comer to the city. When you pull the comps, you can see what they sold for. The wholesale flips are likely to be approximately half, or a fraction, of the retail sales. And so, if you pull 3 comps and two of them sold around $100k, with one at $60k, all within three streets of each other, you practically know what the ARV is, the avg p/sq ft and also what wholesale deals are selling for.
Now get out there and flip something!
P.S.
This is the absolute perfect time to get into wholesaling. The market has shifted. We're seeing double-digit gains in home value, and because of this, it's now a seller's market again! This is just like it was during the housing boom when we were flipping houses for $50k in profit per flip!
About the Author:
Learn from the Founder and Coach of the most personal, hands-on and 1 on 1 wholesale and REO coaching program on the planet! Wholesale Coaching, Inc.. Free reprint available from: Flipping Houses: "How Do I Best Learn about My Market?".
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