Welcome back everyone. Today we’re gonna be talking about how to select the best market to start real estate investing. And before we dive into this video, I want to explain to you guys exactly why you should join my free Facebook group, my Facebook group, it’s called Payneless Flipping.
All you have to do is go to Facebook, join it, we have free community, we have free masterclass as we do every week, we have free materials, we want to help you succeed. And we want you to network with people. So go check it out and join. But let’s dive into this video. So why is it important to pick a market that is good when you start investing?
Well, you don’t want to go in the middle of nowhere where there’s no flips going on. And I actually have an expert that I interviewed and I talked to his name is Nicholas, Nick. And we dove in into exactly how he picks the markets. When people come to him and want him to get leads for his clients, he actually tells them exactly where to go.
So we’re going to dive into that we’re going to learn from the expert and why picking a market is so important when you are marketing and trying to get leads. So everybody, let’s dive right in. And let me know if you have any questions in the comment section below. Nicklaus, let’s talk about what’s going on when people start and what they face when they just pick a random mark, and they don’t know what they’re doing.
Yeah, absolutely. I think I think a big problem people make is they choose what everyone else chooses. You know, I mean, the downside of life is if we want to start there, and it’s our first pick, well, that probably means it’s everyone else’s first pick to Okay, and this is where whenever we’re finding hobbies like yoga, that’s great, because there’s a bunch of people at yoga, we got a bunch of different people, we can be friends with the real estate’s different, like you wouldn’t open up a burger restaurant next to a bunch of other burger restaurants, right? You just wouldn’t do that. It makes sense.
Yeah. However, every real estate investor in their yard isn’t a big sign that says, hey, I’m a real estate investor. So you can’t really tell now what I’ve learned that the safest bet is to stay away from two things. One is something I call a celebrity city. Okay, so a celebrity city is any city that everyone knows the name of, okay, Tampa, Orlando, Atlanta, Phoenix, Los Angeles, Las Vegas, Chicago, okay, if three year olds know the name of these cities, you should stay away from these cities as bold statement, brother. That’s a bold statement.
It’s true. It’s true. And and when I say stay away, let me also be clear, it’s not that it doesn’t work. Arguably, these are the best cities in the world, if you already have a contract, right? Because there is so many buyers, that’s great. However, the cost of that contract is going to be through the roof.
And that doesn’t mean that the close deal isn’t going to outweigh it. But the real rule of thumb is this when you’re playing so let’s use Miami, for example. Well, on the other tip, the first thing was celebrity cities. The other tip was tourist areas. Okay, so now the thing about tourist areas, and I’ll go into Miami, here now is even if you’re in a celebrity city, and you don’t want to get out of it, you got to get away from the tourism.
Okay, if you’re in one of these celebrity cities, and you have a smaller budget, you really want to be in the least touristy place. And since you’re in the most touristy city, right? So finding the coldest spot and the hottest market, if you’re going to be too stubborn and not leave, that’s what I totally recommend.
Okay, so let’s talk about that. So we’re specifically talking about if you have a marketing budget, or you’re cold calling or texting, or you’re doing any outbound, is that correct? Is that what you’re saying? Even inbound?
Whenever you’re doing lead pursuit, right? Whenever there’s some type of investment on the lead strategy, you know, and it’s like, because what’s happening in in these markets, like one guy says, Oh, I’m in, I’m in the zip code with the most transactions. And I’m like, well, that’s great. But that also means that most other people are also transacting thing. You know, if you think if you do the math in reverse, right, right, right, right.
So unless you’re like a dispo come and only dispose deals for people in those areas, then it’s just gonna be a little bit more expensive to do those deals. Now it might you might be able to make a bigger spread, but you’re saying if the person is starting out new doesn’t have a big budget playing in those areas could get you you could outspend like your budget and not be able to get a deal.
Absolutely. So So you know, Miami, I actually Googled it Miami is the fifth wealthiest city in the world, not America. Okay. And you should know that if you’re investing, because if the math works, and it always works, that means that some of the people I’m competing with are the fifth, the top 5% wealthiest in the world as well. A
nd that’s okay, if you want to invest in Miami, but if you’re showing up to Miami with 1000 bucks in your pocket, thinking you’re gonna close deals, you’re not going to because your competition’s minimum budget is $5,000 a month and even that guy is struggling. So you know, and so it’s just understanding who you’re competing against.
And it’s Okay to end up in Miami, I want I want you to start in a place where you’re gonna feel successful, where you’re not gonna get defeated. If you’re just starting now it shows you I’ve been in business six years, I’m still fragile. Okay?
You know, business as business is fragile. We’re always, you know, we’re always fragile. We’re always growing. We’re always improving. So that’s why we come to you guys with the truth. We come to one down week, and I’m like, oh my god, what does this mean for the rest of my life? And it’s just one week, bro. It’s a holiday dude.
That’s it. Yeah, exactly. Be okay, you know, but you know, the fragility is true. So this advice is really mainly based on lead generation strategies and to help protect your momentum. You know, I want I want to view when sometimes when we run into these snags, whether it’s financially or skill wise, like in these markets, a lot of the other guys you’re competing against only as their budget bigger, but their skill is strong.
Yeah, I’d recommend all of my clients, you know, I own a lead gen company. So naturally, these aren’t people with signed contracts looking for buyers. If they were I’d be like, Hey, you’re great in these markets, so you want them to succeed or you don’t they don’t get to keep working with you correct. 100%
And I tell them selfishly, look, I’m gonna give you advice and the advice is, the best results come from markets, nobody wants to visit Okay, and that’s really where you get the most results. I’ve seen people get five leads on a $1,200 campaign in a super saturated market and we shift the budget to Arkansas, okay, and then they literally get 28 leads they close a deal and everything everything becomes real and it’s not that Arkansas is the secret but the number 28 is the secret because it takes leads to close deals you know well that’s I like that you say that because when you say you want to market and cities that you don’t know the name of bro I think Little Rock is the only thing I know in Arkansas. I think that’s the only city I know.
That’s right right so it’s the same thing nobody wakes up and is like let me hit up those other cities I don’t even know the name of an Arkansas right for Mississippi very few people are even saying little rock right, let alone everywhere else, you know, and it’s like and that’s everyone else’s and I get kickback Well, Nick, are there investors there? You know, there’s no investors over there.
And then I have to remind people that every home that’s for rent is owned by an investor that’s correct. They don’t live there. They’re invested and so are you telling me that there’s no homes for rent and the whole area every everyone owns every property they live in? Yeah, market really? And then they go Oh, yeah, that’s such a great point.
And so I understand it doesn’t seem like people would be flipping in Arkansas. But you know, they do and they are horse you know, that’s so true. So the reason why I wanted to talk about this today guys is a lot of people they hear go market right? So they immediately just spend you know, money analysts batch leads and they skip tracing they start calling and when they don’t see success after a certain amount they’re like this doesn’t work but that’s not the case.
It’s just maybe you don’t have the budget to play in those bigger markets when you’re facing me. You’re facing other people who their their budgets are 1015 20 30,000 a month now you can still get deals I got deals in the Utah Salt Lake very competitive when I was new, but I was knocking doors I was hammering phones and it took me several leads so you just got to wait it’s like it’s going to take more calls but if you get some the contracts probably gonna be bigger so depends what you want but momentum like you’re saying it is important to stay stay active bro you need if you’re just calling calling getting smashed, you might want to just quit.
But if you’re calling calling and you know, your first deal is not that big, but at least you’re having good conversations or talking that might help you to see that this is real quicker. Let’s let’s just kind of narrow it down. What are some states that no one thinks you don’t have to go overseas and dive really deep? But what are some states right now that you’re like those perform well, or that’s like probably a good place to start? If you’re starting with Legion?
You know, I’ll be honest, you know, I don’t really have a quick reference. What I try to do for everyone is I try to guide them to where they could be right so I do tell people, the Midwest and any any state you’d never want to visit like to be 100% honest with you. If you look at a map of the 50 states and you’re like holy fuck, I forgot that was a state. That’s a great place to start.
Yeah, I’d never want to go there. Right. You’re like, that’s a good spot. Right? 100% like West Virginia bruh. I’ve actually gotten a lot of contracts that are hard to move in West Virginia, I’ll tell you. And you know, there’s just so many states that we totally for the strip do Yeah. And if someone asks you to name and you’d probably get the 10 before he didn’t know the other 40 So you know, it’s like there’s really it’s really right out there and the least popular the name the better off it is, but that’s if you want to go super vulture super virtual.
My biggest recommendation is you go to the nearest suburban or rural market, okay. And then you know, that place is going to have a reputation they always do that. suburban areas around the city always have the reputations. You know, maybe you’re looking for cows, maybe you’re looking for indications in the market that you know it’s a little bit more rural. Okay, cows, bro cows. Yeah, cows gated fences. Open land that isn’t where you want to be.
That’s a little too deep, but that’s when you know you’re close. Okay. It’s good advice. Yeah. So it’s like what I recommend is when you find those areas, you find the nearest suburban area and then you focus on that suburban area and then that that normally works extremely well.
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