Remember how I said you needed a real estate club of your own? I was at my real estate club, and I overheard a conversation about how California buyers were buying up Texas real estate because of how cheap the properties are compared to the prices in L.A. They could buy two, maybe four properties for the cost of one in California.
I had two properties I found through the bad apple strategy, and I was looking to sell them. At the time I was going to sell, I heard that conversation. So, I thought, ‘Who should I sell those properties to?” How about California buyers? I took out ads in the Los Angeles Times and the Houston Chronicle, scheduled to be a Saturday ad that ended up running on Sunday. Paid $250 for this ad, and I had 7 calls from LA off that one ad. I ended up getting two buyers off that one ad.
One of the buyers I didn’t do anything with, but the other buyer eventually bought 70 properties from me. He also brought me referrals. Also, the fact from this side comment I heard is that I got 70 great deals for that $250. That was a great investment. I simply went where the demand was. In fishing terms, the ad was the bait and I put it right in the middle of where they were biting.
I want you to know what areas are in hot demand, and who are the ones going after it? Once you know your buyer, we’ll be throwing the bait right in front of them. And that’s what we’re going to do with your market research, evaluating market demand.