Robert Allens concentric circle theory makes for intelligent hunting for hot properties. The circle has a small circle in the middle called the “center”
The circles around it are identified as A, B, C, and D A being closest to the center. The theory works this way: compare real estate to student housing. The nearer the student apartment is to campus, the higher the rent is and the lower the turnover is. That student apartment therefore being in circle A is a good investment. The same applies to houses. Which neighborhoods are nearer to centers of employment, education, shopping and conveniences? Try to hunt for properties in the A circle, and avoid those in the D area.
Introducing the Dont Wanter
Dont-wanters are people who will give anything to sell their property, to be rid of it completely, and who cross their fingers every minute hoping a seller will buy their property. Because of this, they can be flexible as you want them to be. How many of them are dont-wanters? “Even in extremely tight sellers markets, there are still plenty of dont-wanters. Perhaps 5% of all sellers are willing to be flexible enough to be called dont-wanters. Some new investors get discouraged early because they havent learned that 95% of the sellers are not flexible. They need to be dealing with the 5% who are dont-wanters.”