We are live. What is going on, guys? Nathan Valley. Benson, how you guys doing? Doing fantastic. Brother. Hey guys. We got something really important to talk about. We got something to talk about. It’s called How to Pick a wholesaling real estate market to work in.
It’s this important that you have to pick the right wholesaling real estate market to work in. And we’re going to break that down for you guys. So anyway, if you’ve been having a question about, am I the right real estate market? Am I working in the right place? This is the video for you. We’re going to show you live how to pick the right real estate market, because if you’re not seeing a lot of success, it’s probably not your fault. So we’re going to dive right into this, everybody just before we get into it, just so you know who we are
I’ll start. My name is Nathan Payne. I’ve been wholesaling real estate investing for over seven years and done hundreds of deals, millions of dollars in transactions, and my goal is to help more people do deals, because I’ve been on the opposite end of not doing deals, and it sucks, but if you don’t have the right information, you can just spin your wheels thinking it’s your fault. But again, maybe it’s not. That’s who I am. Awesome. Yeah, guys, I’m Nathan Valley man, been wholesale for about five years, known for locking up over 100 contracts in a single year.
Done a bunch of deals, bunch of different places. Some of you might have seen a 30 day challenge I did a little while ago to where I picked a totally brand new market. Right, started with the market, and within 30 days, I did a $20,000 wholesale deal without spending any money on marketing. And I only did it like two to three hours, Monday through Friday, each morning. So that was pretty cool. Benson, how about you, buddy? Impressive. Who are you? Benson, yeah, that is, that is awesome. Yeah. Benson. Juarez, one of the owners of privy real estate investment software, been doing real estate for over 20 years. Love it.
We’re excited to come and talk about this topic. So guys, why is it so important to pick the right wholesaling real estate market to start working in, especially when you’re brand new? Why? Why is that important? Let’s, let’s let’s talk about it. Well, one thing I’ll mention with the market. So this was in my first, first wholesaling company.
I believe this was the biggest issue, the biggest kind of roadblock to our success. I know there’s a lot of people that say, oh, you know, just start in your backyard. Just start in your backyard. That depends on where your backyard is, guys, market’s really, really, really important. You might have a smoking deal on paper, but if you don’t have anybody that’s interested in it, or anybody to sell it to, you don’t make any money. That’s right. So that’s, yeah, that’s just my my first two cents. I got a lot of things to say, but I’ll let you guys go. That’s good. Man. Did great. Vincent, oh man, I love being with the Nathan’s. It’s always fun with you guys. So I would just say this like you guys ever read the book The Seven Habits of Highly Effective People? Oh, I love it. Love that.
Yeah. So the second habit is begin with the end in mind, right? So with wholesaling, you want to think several steps ahead and think, Okay, if I can find a lead, if I can get it under contract, if I can go and market it, is someone going to want this thing? Am I going to have the data that I need to be able to prove after repair value, right? Because ARV is king in this business of wholesale. If you don’t have fixed and flipped properties in your data set as a comp for the property you’re trying to sell, you won’t be able to sell it. Okay? That’s just flat out how it works.
So you want to think, Okay, if I find a deal in this neighborhood are there fix and flips that I might be able to use as a comp to prove ARV to me, so I didn’t even know what to offer. And then, if I get under contract, is there going to be somebody in that market that wants this property and I can prove to them that that property is worth what I say it is. And then putting yourself in the shoes of the flipper or the buyer, because they’re thinking, is this thing going to appraise right? Am I going to go and do a bunch of work on this house, and then try to sell it, and then the appraiser for the FHA buyers and to come in, and they’re going to be like, No, it’s not worth that much. It’s worth this much because all the comps are unrenovated.
That squashes your value. So the key is think several steps ahead and then reverse engineer it, and then if that market happens to have all those ingredients, then that’s where you go look for deals. Yeah, it’s really funny. Like, through, throughout working with people and clients, they’ve always, they’ve always asked me the question, like, what do I do if there’s no comps in the area? How do I know what it’s worth? And I’m usually like, if there’s no comps in the area, you’re in a bad area, you know? I mean, like, you’re in a bad market. If there’s not one single flip that’s happened within the last six months, or properties that are like that, yeah, it’s probably you get out there. Yeah, just to add to that, guys one, man, I talk about this a lot, and, man, I get really triggered.
There’s this saying that is, it’s a really common saying in real estate, and it is the biggest lie ever told in real estate. You guys might have heard the saying before. It’s, oh, find a good enough deal. The money or the buyer will just find you guys. When does anything in life work that way? It never does. Right? Wholesaling is no different. You could find the best deal in the world, but if it’s in the middle of nowhere and you can’t find a buyer in time, or you can’t find any buyers that would be interested, because they’re not interested in that area, you don’t make any money.
Which goes right back to what Benson, what you were saying with guys, you gotta start with the end in mind, right? So we got to start with, Hey, who is the person that’s going to be paying me money? It’s going to be that cash buyer, that investor, that person that we’re assigning it to. So I want to start in a market that they really want to do deals in. Yeah, no, I like that a lot. And I think for people that are newer to this, if you’re watching this, and you’re new and you’re trying to find a market to work in, I would say.
Start with one market, right? A lot of people want to go all nationwide, and they want to just pull a bunch of leads, and they’ll go anywhere just one just pick one focus, right? Maybe you can do more more markets later, but it’s really important just to focus start with the end in mind, like we’re saying, and a lot of people, they think they need to do multiple markets because there’s not enough deals in that market they’re choosing.
That’s not true. There’s enough deals to go around. There’s so much opportunity out there. So without further. ADO Benson, are you ready to show us how we can use the tool, privy, which we all love using to find the best market? Yeah, let’s do it while you’re bringing that up. One last thing I want to say, Guys, the reason why this is so important is because it is the very first thing that you this is the foundation that you build everything upon. If you get this part wrong, if you’re in the wrong market, I don’t care how much money you spend on marketing and lead generation.
I don’t care how great of a salesperson you are. I don’t care how great you are at disposition. All of it is going to be an absolute waste of time, money, effort, and you’re going to want to pull your hair out, you know, and you might not even realize. You might think it’s, Oh, it must be my marketing or I’m not good enough. But no, you, you might just be in the wrong market. So guys, please pay attention. This is so crucial.
It is, yeah, all right. Benson, take it away. Show us how it’s done. And what I’d also say too, is that, like, could you stumble into a deal in like, a kind of a crappy market? Yeah, you might be able to, like, force it, but especially when you’re a beginner, you don’t want to force anything like you want to increase the chances that you’re going to succeed. So choosing a good market that has high investor activity is one of the most important things. Now you might be able to figure that out without data by just listening to somebody else. Maybe you know somebody who has already having success in a specific market.
That’s a good reason to do it. But don’t just choose a market because you live there. Maybe you use some anecdotal information from people, you know, people talking about it. Maybe you hear it on a podcast. But the best way is to use data, right? And that’s what privy is all about. Agree? So right here on the screen is, is the Privy platform. Right over here on the left, we have this investor Activity tab where we’re tracking all this investor activity nationwide in real time. And if I click this button right here at the top, it says fix and flip.
That’s going to plot on the map where all the fix and flip activity is happening nationwide. And it’s a revolving 12 months. So the last 12 months, you want to know, like, where are buyers buying? Where are they doing deals? So this is essentially a heat map, and real easy for even a beginner to understand, right? You just go to where you have a lot of blue, right? Avoid these areas that don’t have blue, where it’s not some complicated chart or graph or a spreadsheet that you have to try to interpret. It’s like, okay, I don’t want to be looking for deals in Hayes, Kansas, because no one’s doing deals there. I won’t have the comps, and there’s no demand, there’s no buyers. So then you start to go over here to the Midwest, right, which you see a lot of blue.
Now, then you’re starting to think, Okay, well, there’s a lot of blue. Now, what do I do? Well, you look for larger circles with higher numbers. This is the same thing that I did you guys two years ago, when I was trying to find a new market outside of Colorado, and I chose St Louis. Look at all the activity here in the St Louis market, right? So let’s drill down your opportunity out there. Yeah, there’s all kinds of activity here.
So if I drill down and then I look at the St Louis market, it’s not just going to be St Louis the whole city. It’s going to be specific neighborhoods. Because again, if you’re thinking about beginning with the end in mind, you’re thinking about, okay, if I find a house, we’ll have comps. Well, comps happen within a half a mile radius, typically. So we have to be very laser targeted on specific neighborhoods, not just, Okay, I’m going to do greater St Louis area.
So you know, this area over here is St Louis, but look how much fewer data points there are here compared to right over here, right? So again, you need to think about, if I find a house, is there going to be a house within a half a mile that I can use as a comp? And here are all those data points so you can see really easily, like, what streets are the majority of deals being done on exactly how I would choose a market now. And that helps with your marketing piece as well, right? Like you, you’re like, Okay, I can actually target this specific area of St Louis versus, like, let me pull every absentee owner in the Greater St Louis area.
You’re pulling a giant list, you know? And that’s a lot of money, so you can definitely be way targeted, yep. And then you can download this, right? So there’s, this is, there’s two steps to this, there’s the market, and then the demand. So the demand is caused by the buyers themselves. So we could actually export all of the buyers here into a CSV file, and we’ve got a good beginning of people we can start reaching out to, to start building rapport, talk to them, learn their Buy Box, and start to build those relationships.
Who we can eventually disposition properties to, once we find a deal here, but it’s gonna be way easier to do that when you know what they’re looking for, and we know what they’re looking for, because each one of these properties were flipped, we know that the buyer that flipped this one, we’ll buy a four bedroom, two bath, 2100 square foot house in 63111, if we can find one.
That’s right. And the nice thing Benson is, on a lot of those, you can even see the prices that they paid for it. So guys, that’s that’s one of my favorite parts with this is I like to keep things really simple. I personally, I’m not really big on.
