Episode 39: [Marketing] How to Determine Your Target Farm Area w/Lamar Cannon

Danny Johnson / 12 comments

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Show Notes

Lamar Cannon is a real estate investor who loves to travel the world. He set up his business to allow him to do deals no matter where he is on the globe. His strengths are strategy, marketing and a strong mentality. He enjoys experiencing new cultures, trying new foods, reading, writing poetry and playing basketball.

In today’s episode Lamar and I talk about how he goes about determining which part of a city to focus his marketing on. He’s been investing in a lot of different cities outside of his home city of Austin, TX.

Investing in other cities forced him to develop a data-driven system to determine where to focus his marketing.

As a wholesaler (but almost equally as important for rehabbers), he wanted to determine which zip codes have the most action.

What he does is goes to ListSource.com and generates a list based on the following criteria:

1. Entire City (and surround areas)
2. Single-Family Houses Only
3. Last Sale Date within last 6 months
4. 99-100% Equity (shows most likely was cash buyer)
5. Absentee Owners (most likely investors bought)
6. Companies Only (filter to filter down further to make sure getting investor buys)

This is how he gets the data he wants for free…

On the last page right before checkout, you can preview your data and filter it by zip code. All he’s really interested in is the count of the matching transactions so just the record count per zip code will tell him which zip codes have the most investor transactions.

How cool is that?

Another filter he uses from time to time to determine great areas for wholesaling is the foreclosure rate for the zip codes. The more foreclosures, the more likely it is that the area isn’t being served well by investors as the houses aren’t being bought before foreclosures are happening…LESS COMPETITION!

For someone like myself that does mostly rehabs, I wouldn’t focus as much on foreclosures, rather I’d include price ranges that are near the city’s media home value as that will be the where the biggest pool of buyers is.

All in all, we shared a lot of great info in this episode to help you determine where to focus your mailing and claim your target farm area.

Links

ListSource.com

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12 awesome responses to “Episode 39: [Marketing] How to Determine Your Target Farm Area w/Lamar Cannon”

  1. Mike C on

    I’m trying to preview my list on Listsource and can only see up to 3 sample records. Where do I go to get to the list preview?

    1. Lamar Cannon on

      Here are the steps Mike:
      Once you have finished adding your desired criteria to the sort

      1. Click Purchase List
      2. Click the Tab that says Purchase Partial List
      3. Then select – Custom Selection
      4. Then next to where it says, “Group properties by:” in the drop down select the desired way you would like to separate the list counts (Area Code, Zip Code, State, City, MSA, Census Tract, etc)
      5. (It will take a few minutes to process) – the select export, It will take you to a different page allowing you to email yourself an Excel Spreadsheet that includes your data

      BOOM!

  2. Tim on

    Hi Danny – much of Lamar’s strategy focuses on being a wholesaler trying to find the areas that rehabbers are interested in buying in. What about if you are a rehabber? Do you still suggest sending marketing to the same areas that all of the other rehabbers are buying in? Or maybe focusing on an area that is less saturated?

  3. AJ on

    Can someone document how they find the foreclosure rate per zip code for a specific county?

  4. Jose on

    awesome content for sure, this episode gave me great ideas to find money buyers. i did try it in listsource but i may be doing something wrong tho. however i have MLS access and now im find the cash buyers on there with some sorting, thanks!!