Learning your market isn’t rocket science. In fact, there’s really no science behind it at all.
I mean, let’s face it - the real estate investment business isn’t an exact science. There are no hardcore formulas for success. If you’re a fan of psychology then you’re ahead of the game, because the REI biz has lots to do with understanding people, personalities and effective communication techniques.
What’s up y’all, Andrew Massaro here - the infamous ‘Maestro’ and owner of Wholesale Coaching Inc. and Rockstar Rehabs Inc. I’m back again to say that there ARE, in fact, some things you can do to get in bed with your market to help lead you to those real estate riches.
1. Partner with a Realtor
This should be a no-brainer, but it’s worth mentioning again. Realtors offer a wealth of knowledge when it comes to your local housing market, and they can provide access to the MLS. That’s a huge plus for any wholesaler, so get in good with a Realtor you trust.
How do you find reputable Realtors? Hello, McFly! Ever heard of a website called Zillow? Find your city on Zillow and bam! It will automatically list the Realtors – along with their contact information - in your selected city. Hit ‘em up! Give them a shout to let them know you want to buy a house in the area, and you’d like them to give you some insight.
Once you know the average price per square foot in your area of interest, you’re good to go (for now). Remember that the housing market is constantly changing, so don’t get too attached to that price.
2. Get to House Flipping
You can read books and listen to others blow smoke, but nothing is more valuable than real, hands-on experience. Get in the trenches, get your hands dirty and your feet wet, and gain the knowledge and confidence you need to flip houses like a pro.
It doesn’t matter if the deal goes south. Who cares! Live and learn, right? Fail forward and learn from your mistakes. Any experience is good experience, so take the plunge and just start flipping.
3. Compare Comps
Know an area that’s right for flipping? Check out sites like Zillow (there it is again), Trulia, and, of course, the MLS. Pull the comps to see what they sold for.
Heads up - wholesale flips will be roughly half of retail sales, so if you pull three comps and two of them sold around $100k (with one at $60k) all within a three-street radius, you can be fairly confident of the average price per square footage of the after repair value (ARV) and what wholesale deals are selling for in that area.
Make sense? It will…
But you’ve got to get out there and start doing. Flip something… anything. Just get to work, get some notches in your belt and gain the experience you need to kick the wholesaling world’s butt!
I know you can do it.
Talk to Me
Do you have another tip for learning your market? Or another way to get in good with a Realtor? Share below, friends.
Partner with Realtors whenever you possibly can.
Compare comps to get to know your market values.
Don’t hesitate to get started – take action today.
Get out there and start flipping as soon as possible!
Andrew Massaro
, also known as "The Maestro", is the founder of Wholesale Coaching, Inc. and is one of the most sought-after wholesale and REO coaches in the U.S. A University of Florida graduate, Andrewís house flipping career started in 2005, during one of the most dramatic and awe-inspiring real estate booms in recent memory.
After many years of success flipping houses in Tampa Bay, Andrew began also pursuing his passion and purpose: hands on, one-on-one coaching and mentoring other investors. Through Wholesale Coaching, students interact with and are coached by Andrew, personally. He has the unique ability to teach and guide his fellow investors to the results they desire. The one-on-one interaction and partnership is the key and what really sets him apart from others who offer coaching.
Andrew is also a loving husband, father to a beautiful little girl, Charlie Lynn, and an active board member of Current of Tampa Bay, a non-profit focusing on humanitarian efforts and showing love to underprivileged individuals.