PART 1
Read the market before you filter.
Market finder is where we go into any location and figure out where the investors are finding opportunity. In this one I read the map, then the price point, then the competition question. No filters yet, just reading what is there.
Where investors are finding opportunity.
Read where the investor transactions consolidate.
Market finder is where we can go into any location and figure out where are the investors finding opportunity. I go to Indiana, then Lake County, Indiana, and filter by the investor transactions.
Then I can see where the consolidation is happening. That tells me not to market in one ZIP code until I have fully marketed in the one above it.
Market finder is where we can go into any location and figure out where are the investors finding opportunity.
Check the sales price before you trust the map.
You cannot take this at face value all the time. Maybe the sales price in that ZIP code is just terrible, and it is not an area I would want to do deals in.
Maybe it is only land, and maybe the data is not too great there. So I look at the next ZIP code over and compare.
it looks to be a little bit better price point, and, and I can make a better plan around here.
Before you trust it
You cannot take this at face value all the time. Maybe the sales price there is just terrible, and it's only land, and the data is not too great.
Your type of investor transactions.
Separate your type of transactions from theirs.
Just because there is a lot of investor transactions somewhere does not mean it is the type of investor transactions you do. That is the difference between the two.
So we have to do a little bit more work to understand that. But we have at least the understanding of what is there.
Just because there's a lot of investor transactions somewhere, doesn't it mean that it's the type of investor transactions you do.
Two questions
Where they're finding value and what they buy.
Market finder
- What it answersWhere is it that they're finding value
- What you seeWhere the investor transactions are
- What you do with itUnderstand what's there
Sold properties
- What it answersWhat are they finding value in
- What you seeWhat the investors are buying there
- What you do with itBuild out a better base criteria
Open sold properties to see what they buy.
Sold properties is our ability to figure out what the investors are buying in that area. What are they finding value in, is the way I express this.
So market finder is where is it that they are finding value. Sold properties is what are they finding value in. I use that to build out a better base criteria.
Or rather, in a better phrasing, how do I get in front of the people that are selling by looking at the deals that people are buying.
Competition means volume and money.
Market where there is competition.
The biggest thing I get is this question. Well Tyler, if I am only marketing where everybody else is marketing, is that not competition? Yes, it is.
You have two options. Either you market where there is competition, which means there is volume and there is money to be made. Or you go where nobody is at, and there is nobody selling and no buyers.
So I'm reverse engineering other people's success to make sure I'm successful.
Two options
You have two options and only one has buyers.
Market where there's competition
- VolumeThere's volume
- MoneyThere's money to be made
- What the marketing buysDeals people are buying
- When it's okayYou want competition
Go where nobody's at
- VolumeNobody's selling
- MoneyThere's no buyers
- What the marketing buysBrand authority nobody cares about
- When it's okayOnly for a rental portfolio
Stop spending in areas that do not matter.
Going where nobody is buying is only okay if you are trying to build a rental portfolio. Say nobody is buying there and properties are not selling. You go there and spend thousands a month on marketing.
All you are doing is building brand authority in an area that does not care that you exist. So you have to be very smart with the way that you market. Make sure you are not spending money in areas that do not matter.
The answer is to be smarter than your competition, which you guys are already doing that by being here.
BEFORE YOU MOVE ON