Epic Real Estate Investing - [ENCORE] How to Pick the Best Market for Real Estate | 413

Episode Date: June 22, 2018

Location, location, location! Today on Financial Freedom Friday, Matt Theriault is teaching 5 steps that will help you pick the best market for real estate and overcome your crippling "grass is always greener" syndrome. Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terio Media. It's time for Financial Freedom Friday with Matt Terrio. Okay, how to pick the best market for your real estate investing. That seems to be on the top of everyone's mind when they're getting started. I mean, after all, the old real estate adage is it's location, location, location. Should I work in my backyard or should I work virtually? You know, we're humans, right? And it seems the grass is always greener on the other side.

Like everyone's got the advantage over there. If I only lived over there, I could really crush it. And, you know, and then there are also countless questions to answer when you're picking your best market. You know, how many people live in the market? Is the population growing? Is it shrinking? What's the unemployment rate? You know, how much crime is there?

That's always a concern. Is it landlord-friendly area or a landlord-friendly state? How much are the property taxes? Do more people own there? More people rent there? What's the price-to-rent ratio? Are there a lot of vacancies? How do all of these numbers compare to the national average?

You know, what else? How many homes are on the market? How many transactions are actually taking place per month? Or how long is it taking houses to sell? Are sellers getting their asking price? Who's actually buying all of these houses? Is it investors? Is it institutions?

What's causing the commotion here? I mean, there are a ton of questions that can be asked. And so much depends on your real estate strategy and your overall financial goals to determine which of these questions. are most relevant, most relevant to you. And there's nothing wrong with asking these questions, by the way. No, there's nothing wrong with asking these questions and getting answers for them. In fact, it's really prudent to do so. I'll never tell you not to ask these questions or ignore this

type of information. No. The problem is, though, that what do you do with the answers once you have them? You know, with all of this information getting in your head, most of people get stuck via paralysis by analysis. And most people I cross paths with, they're in a position where their goal is to make sense. the money fast. That's what they need to do. Or they need to replace their jobs in companies because they can't stand their job. They can't wait to quit. Those are common beginning goals. And with that being the case, I like to suggest erring on the side of imperfect action, as opposed to perfect inaction. In other words, if you need to go somewhere, you can't steer a parked car, right? You've got to give the car some gas. It's ready, fire, aim. Or even drop the ready

all together and just fire, aim, and go. You know, get the car moving so you can actually steer. it. Here, let me make this really easy for you. So you can start making some money right now. Here's the best market to work in, the best market for you to work in. The best market to work in is the market that you will actually work in, the one that you'll work consistently in and the one that you're going to work with persistence. Here's why. As real estate investors, we make our money when we buy. You've heard that before, right? Meaning we have to buy at a discount, or we're terrible investors unless we do. And 95% of all real estate transactions happening in the public form known as the MLS, multiple listing service, of all these transactions are happening in the neighborhood,

they're all happening in the neighborhood of retail value. Yeah, I know that there are exceptions, hold on, they're exceptions, but I'm talking about what you can expect, what you can count on, and you can count on the 5% getting the discount. We're only looking for the 5% of the deals that are sold at extreme discounts. We're not looking for people that want to sell, but people that need to sell, and people need to sell due to some sort of distress. And there are three types of distress, there's financial distress, there's personal distress, and there's property distress. I mean, this is what defines a motivated seller, right? You've heard that before. Basically, life happens. It happens to people. It happens to people in every market in every neighborhood,

regardless of financial or socioeconomic status. Life happens. And with that being the case, what we teach here in the Epic Pro Academy will work in any market. So you can go into deep market analysis and try to zero in on the perfect spot, or you can start making some money right now and then make adjustments along the way. Right? So here's what I recommend. I'll give you five steps basically to follow. One, make sure that there are houses in your market. Make sure there's houses there and make sure that people live in them. All right? And as a guideline, try to stay within 60 miles of your primary residence. Focus on three-bedroom, two-bath, single-family residences in your blue-collar and middle-income neighborhoods or those neighborhoods that are just under the median

price point. Look for neighborhoods where your police officers live or your school teachers or your government employees or, you know, or maybe your young couples that are just buying their first home, that neighborhood where they bought their first home and they can't wait to move up out of that neighborhood into their next home. There's typically going to meet more turnover there. There's more transactions there, which translates to more opportunity, more opportunity for you. So choosing a neighborhood like this, it's a quick and dirty way to satisfy that long list of questions that I gave you in the beginning. Now, it's not perfect. but it works. And we're not trying to be perfect anyway. We're trying to make some money sooner

rather than later. And then with some money in our pockets, we can start trying to perfect our market or perfect our marketing. Okay. So that's number one. Number two, identify people in the three areas of distress that I mentioned before. There's financial distress, personal distress, and property distress. Number three, create your message that demonstrates that you can cure or improve their distress. And don't forget instructions in your message on how to contact you for that cure. It's called a call to action. You need that in your message. Number four, deliver that message to your distress people and automate that delivery.

Number five, when they contact you, interview them to see if you can actually alleviate their distress and then go solve their problem. All righty? We're getting a little deep into the process there, getting a little off topic. Let's get back to picking the best market. The point being, you solve people's problems. That's what you do. And people with property, they experience problems every day in every market. There will never be a shortage of problems for you to solve.

So the very best market for you to work is the one you'll actually work, that's the one that you're going to work consistently, and the one you're going to work with persistence. Don't overthink it. Just get started and then make adjustments along the way. Imperfect action beats perfect inaction every time. You can't steer a parked car. So the best market to get started in,

it's 60-mile radius of your primary residence or where you spend most of your time. Look for three-bedroom, two-bath, single-family residences. neighborhoods just under the median price point for the area, and then look for the distressed property owners with problems. They're out there. They're everywhere. They're in every market. And then go out there and start solving their problems

of which they're going to compensate you with equity. You're exchanging equity for peace of mind. That's what you do. And it happens in every market. This podcast is a part of the C-Suite Radio Network. For more top business podcasts, visit c-sweetradio.com. Thank you.