Don’t Be Afraid To Venture Into New Territories To Find Deals
From Tom Nardone, Millionaire Mailman …
Some of my students have been saying that the market where they live is fully recovered from the crash, and in fact, some markets are just as stupid hot with insane pricing as they were back in 2006 prior to the big crash.
If you live in a hot market like this, fear not…
We live in an age of internet information that allows us to thrive in distant markets.
I live in Ft. Lauderdale, Florida where I have seen prices of an average house go from $300,000 down to $50,000 and then back up to $200,000.
In markets where the hedge funds have jumped in, it’s created a competition for properties where all the reward goes to the person who “finds” the deal.
Creativity + Distance = Money
The better you are at marketing and finding and creating deals, the more money you will make.
If your market is loaded with competition like mine is – with hedge funds and local investors all clawing for the same properties – then try another market within a 2 to 3 hour drive away.
As long as you are wholesaling, there is very little risk in these distant markets once you get to know them.
I have also rehabbed and managed long distance rentals, and I will say it is much more of a challenge to rehab and manage then it is to wholesale long distance.
If you are wholesaling, all you need is a laptop and an internet connection and you are up and running!
The last 4 properties I have wholesaled have been from towns that are 2 to 4 hours’ drive away from me.
Remember, when you have access to the internet, you have access to public records, comping websites, cash buyers lists, hedge funds, mailing lists, etc.
Hit the Road, Jack
What I started my out of town ventures, I was having a few sellers from my postcard campaigns tell me that they owned properties a few hours’ drive away and that they wanted to sell them.
Knowing there is less competition in those areas, I thought it may be less difficult than facing my local competition.
So I decided to make offers on those houses… and to my surprise I got several deals accepted with much less competition than in my local market.
I lined up 3 properties to go look at, and in each trip, I was buying one out of the 3 houses.
The biggest asset I have had is using a paid subscription service that allows you to comp properties professionally anywhere in the state. It’s also beneficial to have a system of finding cash buyers from public record. (If you are a Clever Investor Student, then your mentor can pull a list of cash buyers for you in the county where you plan to do your long distance wholesaling.)
The last deal I closed was in such a small town that they only had one title company.
It was obvious to me that the small town title company owner would know someone who regularly buys for cash and could refer a buyer to me. And that’s exactly what happened… the title company owner knew a cash buyer for my deal and 2 days later the deal was closed for a fast $5,000 wholesale profit.
Evaluating Out of Town Props
If you find out what the local real estate appraisers are using in your state, then that would be a good service to use to quickly and accurately value properties. If you have access to the MLS, then that may be enough for you.
My formula to quickly evaluate out of town deals is to use the county property appraisers website, the MLS, and a good quality paid subscription property evaluation website.
Then lastly, I look at Zillow, Trulia, Redfin, Eppraissal, realtror.com and all the other free websites. Keep in mind thought that the free websites are less reliable than the paid sites.
With all of this information at your disposal – don’t be afraid to look to your neighboring counties for deals.
You may be surprised what you find. Markets are always changing, and we always have to be flexible to try new things and in new places.
Enjoy The Journey!
Thoughts, Questions, Ideas…
Have you ventured into your neighboring counties and found success? I wanna hear about it in the comments section below.