How To Find The BEST Neighborhoods to FARM | Real Estate Farming Turnover Rates
Learn how to find the BEST FARM area for real estate farming in your city. Learn how to find neighborhoods with a HIGH TURNOVER RATE so you can SELL MORE homes. Find a Real Estate Neighborhood for Farming that will have a high probability of being successful.
Today, we're gonna talk about farming and how to pick a good farm area, a good neighborhood, that has a high turnover ratio. So let's jump into it right now.
Alright, so real estate farming is a big investment, right? You're gonna commit to it for months and months, over a year to really be successful at it.
So before you jump into it, it's so important that you pick the right farm area. Now, in a perfect world, maybe it's in a neighborhood that's near you where you live or whatever, but if not, or maybe there's an oversaturated neighborhood near you, we gotta find you a really, really good farm area that has a high turnover ratio which allows you to basically have more opportunities to get more sales because more homes are turning over in the year so that you can snag some of those.
So, perfect answer to figure this out and find a good neighborhood for you is to use a tool through Chicago Title called Title Toolbox. Title Toolbox does a ton of things. It can pull data on properties, phones, emails, leads, homes most likely to sell, but today, I wanna show you real fast how to pull neighborhoods that have high turnover ratios.
Let's jump into it right now. All right, so here I am in Title Toolbox, popped up on your screen. Once you log in, you have an account, go ahead and just hit the Chicago Title logo up in the top left corner. Once that's done, you're gonna see the mapping section. The very top, there's a couple of search features. The one we wanna choose today is called Statistics.
We're gonna click on Statistics and there's a number of ways that we can find our farm area based on the turnover ratio, whether that's doing a radius search, doing a boundary and drawing around a specific area, or just doing a full on area search.
Today let's just go super vague and wide, let's do area search. So we're gonna click on that, we're gonna not be too specific. Let's just pretend we're in Denver, which I am, and we're just gonna search for all of the city of Denver. So I'll click Denver, I'll do single family residents, I'm gonna remove condos. We're gonna search for property tracks, which is essentially plots, areas of land that make up some of these neighborhoods.
And then just so we filter out the very small, small property tracks, let's say you wanna farm at least maybe a hundred or more homes, we're gonna do a minimum of 100 plus homes. Okay, that's it, click the Search button, boom, this is gonna load and it's gonna tell you all of the results.
Okay, we got 411 search results for different property tracks within the Denver area that have at least a hundred or more homes within them. And then up here we can sort, right, by turnover ratio. So it looks like, for example, in this scenario, Green Valley Ranch filing 70 is at a 15.6 turnover ratio.
Now, one thing you gotta keep in mind before you just start looking at these is if a turnover ratio is super duper high, chances are, there's probably a new build community in there and what we need to do is we need to filter out any of the homes that have sold most recently because that would be inflating the turnover rate. So keep that in mind, but this is how you do it.
Once you've got your turnover rates here, you can then click over onto the mapping section and you can start to see these turnover rates and where they are on the actual map. So if you now wanna get more specific, you can zoom in here on the left-hand side and start clicking on these.
And you can see the turnover, the number of homes within that specific area, right? What's the average purchase price, and all the nitty gritty details, so you can now be selective.
I'm Jerad Larkin, I'm with Chicago Title, I share real estate tools, resources, marketing strategies, ideas, I teach classes, I host classes.
So if you need access to any CE classes or want to come to some of my marketing classes, feel free to reach out or sign up on my website, milehightitleguide.com. And then if you like this video and you wanna see other videos like this that are of value for you in the real estate space, subscribe to my video email newsletters, I send two a month.
I hope this was helpful, if you have questions on farming or need help or want to sit down and want help with your real estate marketing, reach out to me, I'd love to help.