Major Metropolitan Areas

• Dallas-Fort Worth: Diverse economy, corporate relocations, moderate price points
• Houston: Energy sector, medical center, port activity, most affordable major metro
• Austin: Tech hub, highest appreciation potential, lowest cap rates, highest barriers to entry
• San Antonio: Military presence, tourism, healthcare, moderate growth, better cash flow

Major metros offer liquidity, professional management options, and diverse tenant pools, but typically feature lower cap rates and higher entry costs.

Secondary/Tertiary Markets

• College Towns: Bryan-College Station, Lubbock, San Marcos – student housing potential
• Oil & Gas Centers: Midland-Odessa, Corpus Christi – higher yields, more volatile
• Border Cities: McAllen, Laredo, El Paso – international trade, steady growth
• Emerging Areas: Waco, Tyler, New Braunfels – benefiting from major city spillover

Secondary markets often offer higher cash flow, lower competition, and lower entry price points, but with potentially less liquidity and higher management challenges.

Key Market Analysis Metrics

• Population Growth: Aim for areas with 2%+ annual growth
• Job Growth: Diversified employment sectors, major employers
• Income Trends: Rising incomes support rent and value increases
• Rental Demand: Vacancy rates below 5% indicate strong demand
• Price-to-Rent Ratios: Lower ratios (under 15) support better cash flow
• Development Activity: New construction indicates market confidence
• Infrastructure Projects: Roads, rail, schools drive appreciation
• Days on Market: Faster-selling homes indicate strong demand

The most successful Texas investors develop systematic market selection criteria aligned with their investment strategy, whether focused on cash flow, appreciation, or balanced returns.

Expert Tip: When evaluating Texas submarkets, pay close attention to school district boundaries. Properties in highly-rated school districts typically experience stronger appreciation and more stable tenant demand. In Texas, school districts can cross municipal boundaries, so careful mapping is essential. Websites like GreatSchools.org and the Texas Education Agency ratings can help identify top-performing districts.

Long-Term Buy and Hold

Best For: Passive investors seeking stable long-term income and appreciation

Target Markets: Established neighborhoods in major metros; growing suburbs

Property Types: Single-family homes, duplexes, small multi-family

Expected Returns: 4-6% cash flow, 5-8% appreciation, 9-14% total return

Minimum Capital: $50,000-$75,000 for down payment and reserves

Time Commitment: 1-2 hours monthly with property management

This strategy focuses on acquiring properties in stable locations with reliable rental demand and holding through market cycles. It requires patience but delivers consistent passive income and wealth building over time.

BRRRR Strategy (Buy, Rehab, Rent, Refinance, Repeat)

Best For: Investors looking to rapidly build a portfolio with limited capital

Target Markets: Transitional neighborhoods; suburbs with older housing stock

Property Types: Distressed single-family, small multi-family needing renovation

Expected Returns: 8-12% cash flow after refinance, 10-15% total return

Minimum Capital: $75,000-$100,000 initially (potentially recycled)

Time Commitment: 10-20 hours weekly during acquisition/rehab phases

This strategy enables portfolio scaling by recycling capital. Purchase undervalued properties, renovate to increase value, rent to stabilize, refinance to recover capital, then repeat. Successfully implemented across Texas, particularly in “path of progress” areas.

Fix and Flip

Best For: Active investors seeking shorter-term profits

Target Markets: Desirable neighborhoods with high owner-occupant demand

Property Types: Outdated/distressed single-family homes with good bones

Expected Returns: 15-25% profit on total project cost per flip (not annualized)

Minimum Capital: $75,000-$150,000 per project

Time Commitment: 20+ hours weekly during active projects

Texas markets offer numerous fix and flip opportunities, particularly in areas with aging housing stock and strong buyer demand. Success requires skillful project management, accurate renovation cost estimation, and understanding buyer preferences in target neighborhoods.

Short-Term/Vacation Rentals

Best For: Investors seeking highest cash flow potential with active management

Target Markets: Tourist destinations, business centers, medical districts

Property Types: Single-family homes, condos in areas with minimal STR restrictions

Expected Returns: 15-25% cash flow, highly variable based on location/season

Minimum Capital: $100,000-$200,000 including furnishing/setup

Time Commitment: 5-15 hours weekly or significant management expense

Texas offers numerous short-term rental opportunities, particularly in Austin, San Antonio (River Walk, medical center), Gulf Coast beaches, and Hill Country. Successful operation requires understanding local regulations, which vary significantly between municipalities. Austin, Dallas, and San Antonio have enacted various restrictions, while many smaller communities remain unregulated.

Role: Market knowledge, property sourcing, comparable analysis, negotiation

Selection Criteria:

• Experience working specifically with investors
• Investment property ownership themselves
• Deep local market knowledge
• Understanding of investor metrics (cap rate, cash-on-cash, etc.)
• Access to off-market opportunities

Finding Quality Agents:

• Referrals from other successful investors
• Local real estate investment associations
• BiggerPockets forums and networking
• Specialized investor-focused brokerages

Look for agents who provide pre-screening analysis of potential properties rather than simply sending listings. The right agent should be able to calculate returns and identify potential issues before you waste time on unsuitable properties.

Role: Tenant screening, rent collection, maintenance, legal compliance

Selection Criteria:

• Experience with your specific property type
• Strong tenant screening processes
• Clear fee structure without hidden charges
• Technology platforms for reporting and communication
• Established vendor relationships
• Professional certifications (NARPM, etc.)

Typical Management Fees in Texas:

• Single-family homes: 8-10% of monthly rent
• Small multi-family (2-4 units): 7-9% of monthly rent
• Larger multi-family: 4-7% of monthly rent
• Additional leasing fee: 50-100% of one month’s rent
• Setup/onboarding fees: $250-500 per property

Interview at least three management companies, check references from current clients, and review their lease agreements and processes thoroughly. The right property manager is often the difference between success and failure, particularly for out-of-state investors.

Role: Securing optimal financing, maximizing leverage safely

Key Members:

• Mortgage Broker: Access to multiple loan options and lenders
• Portfolio Lender: Flexible terms for investors with multiple properties
• Private/Hard Money Lender: For short-term needs or non-conforming properties
• Insurance Agent: Specialized in investment property coverage

Financing Considerations for Texas:

• Conventional, FHA, and VA loans widely available
• Texas-specific portfolio lenders offering investor-friendly terms
• Specialized insurance needs for coastal/flood-prone areas
• Texas equity restrictions on owner-occupied properties

Texas has unique home equity laws that limit borrowing against your primary residence to 80% of value, which can impact investment strategies that rely on home equity. Working with lenders familiar with Texas-specific regulations is essential.

Role: Specialized expertise for various investment aspects

Key Members:

• Real Estate Attorney: Entity setup, contract review, dispute resolution
• CPA/Tax Professional: Tax strategy, property tax protests, entity selection
• Home Inspector: Property condition assessment, renovation estimation
• General Contractor: Renovations, repairs, property improvements
• Insurance Agent: Property, liability, and umbrella coverage

The team should scale with your portfolio; beginning investors might rely more on their real estate agent and property manager, while experienced investors with larger portfolios benefit from deeper bench strength with specialists in multiple areas.

Expert Tip: When vetting property managers in Texas, pay careful attention to their documentation and processes for handling security deposits. Texas law requires landlords to return deposits within 30 days of move-out with itemized deductions for any withholdings. Property managers should have clear policies and documentation procedures that protect you from liability in security deposit disputes, which are among the most common sources of landlord-tenant litigation.

Location Analysis

Neighborhood Factors:

• School district quality and boundaries
• Crime statistics by neighborhood (city-data.com)
• Flood zone and environmental hazards (FEMA maps)
• Property tax rates by exact location (county appraisal district)
• Future development plans (city planning department)
• Proximity to employment centers
• Walkability and amenities
• Demographic trends in immediate area

Common Texas-Specific Considerations:

• MUD (Municipal Utility District) tax assessments
• Hurricane/flood risk in coastal areas
• Foundation issues in areas with clay soils
• HOA restrictions and fees
• Oil/gas/mineral rights ownership

Texas real estate varies dramatically by location, even within the same metropolitan area. Research exact property locations thoroughly, as conditions can change significantly even within a few blocks.

Financial Analysis

Income Estimation:

• Research comparable rental rates (Rentometer, Zillow, local listings)
• Verify rates with local property managers
• Estimate seasonal occupancy rates if applicable
• Consider future rent growth potential
• Analyze current lease terms if property is tenant-occupied

Expense Calculation:

• Property Taxes: 1.8-2.5% of value annually (county specific)
• Insurance: 0.5-0.7% of value annually (higher in coastal areas)
• Property Management: 8-10% of rent plus leasing fees
• Maintenance: 5-15% of rent depending on age/condition
• Capital Expenditures: 5-10% of rent for long-term replacements
• Utilities: Any owner-paid utilities (common in multi-family)
• HOA/MUD Fees: If applicable
• Vacancy: 5-8% of potential rent

Key Metrics to Calculate:

• Cap Rate: Net Operating Income ÷ Purchase Price (aim for 5-8%+)
• Cash-on-Cash Return: Annual Cash Flow ÷ Total Cash Invested (aim for 8%+)
• Gross Rent Multiplier: Price ÷ Annual Gross Rent (lower is better)
• 1% Rule: Monthly rent should be ≥1% of purchase price
• 50% Rule: Operating expenses typically ~50% of rent (excluding mortgage)

Texas investors should be particularly careful with property tax estimates, as they represent a larger portion of expenses than in many other states and can increase substantially after purchase.

Physical Property Evaluation

Critical Systems to Assess:

• Foundation: Critical in Texas clay soils; look for cracks, door issues
• Roof: Age, condition, recent hail damage (common in Texas)
• HVAC: Age, type, seasonal efficiency (critical for Texas heat)
• Plumbing: Type of pipes, evidence of leaks, water pressure
• Electrical: Panel capacity, wiring type, code compliance
• Windows: Energy efficiency, condition, operation
• Drainage: Proper grading, gutters, evidence of water issues

Texas-Specific Concerns:

• Post-tension slab identification and condition
• Previous foundation repairs and warranties
• Hurricane strapping in coastal areas
• Pier and beam foundation condition in older homes
• Evidence of termite treatment/damage
• Mold issues, particularly in humid regions

Professional Inspections:

• General home inspection ($350-500)
• Specialized foundation inspection if concerns exist ($500-800)
• Termite/WDI inspection ($75-150)
• HVAC system evaluation ($100-200)
• Sewer line scope for older properties ($250-350)

The inspection phase is not the place to economize. Texas properties face unique challenges from soil conditions, extreme weather, and in some cases rapid construction during boom periods. Thorough professional evaluation prevents costly surprises.

Expert Tip: When analyzing potential investments in Texas, always verify flood zone status using FEMA maps and check the property’s flood claim history. Following Hurricane Harvey in 2017, many properties flooded that were not in designated flood zones. Beyond official flood maps, look for signs of neighborhood water issues: street ponding after rains, water marks on nearby buildings, or extensive drainage infrastructure. Even properties outside official flood zones may benefit from flood insurance, which is surprisingly affordable in low-risk areas.

Contract and Negotiation

Texas-Specific Contract Elements:

• Standard Texas Real Estate Commission (TREC) forms widely used
• Option period (5-10 days) allowing inspection and termination
• Option fee ($100-500) paid directly to seller
• Earnest money deposit (1% typical) held by title company
• Specific addenda for investment properties available
• Seller’s disclosure requirements (but with limitations)

Negotiation Strategies:

• Focus on option period length and cost in competitive markets
• Consider as-is purchases with appropriate price adjustments
• Negotiate closing costs coverage by sellers when possible
• Request specific repairs rather than credits when feasible
• Include fixtures and appliances explicitly in contract
• Consider lease-back options in seller’s markets

Texas uses a unique option period system that gives buyers inspection time with the right to terminate for any reason, making it more buyer-friendly than many states. However, this comes at a cost (the option fee) that has increased in competitive markets.

Due Diligence

Property Level Due Diligence:

• Professional home inspection (schedule immediately after contract)
• Specialized inspections as needed (foundation, pool, septic)
• Review of seller’s disclosure (verify all systems functional)
• Utility costs verification (request previous 12 months’ bills)
• Current lease review if tenant-occupied
• Homeowner’s Association documents review

Title and Legal Due Diligence:

• Title commitment review (easements, restrictions, encumbrances)
• Survey review (boundary issues, encroachments)
• Property tax verification (current and post-purchase estimates)
• Permit verification for any recent improvements
• Insurance quote confirmation before closing
• Entity paperwork preparation if using LLC/trust

Neighborhood Due Diligence:

• Visit property at different times of day/week
• Speak with neighbors about area
• Check crime statistics by specific location
• Verify flood zone status (FEMA maps and past flooding)
• Research planned developments and infrastructure
• Check proximity to unwanted facilities (landfills, etc.)

Texas due diligence periods are shorter than many states, averaging 7-10 days. Begin inspections immediately after contract acceptance, as scheduling can be competitive in busy markets.

Closing Process

Key Closing Elements:

• Title companies handle closings (not attorneys in most cases)
• Typical closing timeline: 30-45 days from contract
• Final walk-through right before closing
• Both remote and in-person closings available
• Cashier’s check or wire transfer for closing funds
• Seller not typically present at same time as buyer

Closing Costs:

• Title insurance: 0.9% of purchase price (Texas rates regulated)
• Escrow fee: $350-500
• Recording fees: $100-200
• Lender fees: Per lender (if financing)
• Prepaid expenses: Insurance, property taxes, etc.
• Survey: $400-800 if not provided by seller

Post-Closing Steps:

• Transfer utilities immediately
• Change locks/security codes
• Register with HOA if applicable
• Set up property tax notifications
• Schedule property management onboarding
• File homestead exemption if owner-occupied

The Texas closing process is generally efficient compared to states requiring attorney closings. Title companies handle most documentation, and many can accommodate remote closings for out-of-state investors.

Expert Tip: In competitive Texas markets, consider using a “highest and best” strategy with a twist. When submitting offers in multiple bid situations, include an escalation clause that automatically increases your offer by a set amount (typically $1,000-$5,000) above the next highest verified offer, up to your maximum price. This strategy has proven effective in DFW, Austin, and Houston’s most competitive submarkets. Pair this with an increased option fee (direct to seller) and minimal contingencies to make your offer stand out.

Tenant Screening

Key Screening Elements:

• Income verification (2.5-3x monthly rent minimum)
• Credit check (minimum score typically 600-650)
• Criminal background check (based on conviction history)
• Rental history verification (previous 2-3 landlords)
• Employment verification (length of employment, stability)
• Eviction history search (Texas and national databases)

Legal Considerations:

• Texas allows significant screening flexibility
• Must still comply with federal Fair Housing laws
• Consistent application of screening criteria for all applicants
• Careful documentation of reasons for application denials
• Consider written screening criteria to demonstrate consistency

Thorough tenant screening is the foundation of successful property management. In Texas, evictions can be completed relatively quickly compared to other states, but prevention through proper screening is always preferable.

Lease Agreements

Essential Lease Elements:

• Term length (12-month standard, avoid month-to-month initially)
• Rent amount, due date, grace period, late fees
• Security deposit amount and conditions
• Pet policies and deposits/fees
• Maintenance responsibilities clearly defined
• Utility payment responsibilities
• Rules regarding alterations, smoking, noise, etc.
• Entry notification procedures

Texas-Specific Provisions:

• Security deposit handling procedures (30-day return requirement)
• Bed bug addendum (legally required)
• Flood zone disclosure if applicable
• Water submetering rules if applicable
• Provisions for landlord’s entry (no statutory notice period)
• Garage door opener requirements if applicable

Use professionally prepared, Texas-specific lease forms such as those from the Texas Association of Realtors (TAR) or Texas Apartment Association (TAA). Avoid generic online leases that may not comply with Texas requirements.

Maintenance Systems

Responsive Maintenance:

• Clear protocol for tenant maintenance requests
• Categorization of emergency vs. non-emergency issues
• Response timeline expectations (24 hours for acknowledgment)
• Documentation of all maintenance activities
• Follow-up verification of completion and quality

Preventative Maintenance:

• Seasonal HVAC maintenance (critical in Texas climate)
• Regular irrigation system checks (prevent foundation issues)
• Gutter cleaning and roof inspections (especially after storms)
• Water heater maintenance and inspection
• Pest control treatments (quarterly recommended)
• Foundation monitoring in clay soil areas

Vendor Management:

• Pre-qualified vendor list for each trade
• Pricing agreements with preferred contractors
• Verification of insurance and licensing
• Performance tracking and quality control
• Backup vendors for each category

Texas’s climate creates specific maintenance challenges, particularly related to HVAC systems, foundation issues due to soil movement, and storm damage from severe weather. Proactive maintenance prevents costly emergency repairs.

Financial Management

Income Management:

• Online rent collection options
• Clear late fee policies and enforcement
• Security deposit handling in separate account
• Documentation of all financial transactions
• Rent increase strategies and market analysis

Expense Management:

• Preventative maintenance budget (typically 5-10% of rent annually)
• Capital expenditure reserves (5-10% of rent annually)
• Property tax planning and protest procedures
• Insurance review and competitive bidding
• Utility cost monitoring and management

Accounting and Reporting:

• Monthly owner statements
• Annual financial summaries
• Tax document preparation (1099s, etc.)
• Cash flow analysis and forecasting
• Return on investment calculation and tracking

For out-of-state investors, detailed and transparent financial reporting is critical. Property management software with owner portals showing real-time performance data is increasingly the standard in Texas.

Expert Tip: When managing properties in Texas, consider implementing a “preventative maintenance credit” program. Offer tenants a small monthly rent discount (typically $25-50) for completing and documenting specific seasonal maintenance tasks like changing HVAC filters, checking smoke detectors, treating for pests, etc. This approach reduces costly emergency repairs, extends equipment life, and engages tenants in property care. Document the program clearly in lease addenda with specific requirements and verification procedures.

Property Tax Management

Understanding Texas Property Taxes:

• Among the highest property tax rates in the nation (1.8-2.5%)
• No state income tax compensates for higher property taxes
• Set by multiple taxing authorities (county, city, school district, etc.)
• Values reassessed annually by county appraisal districts
• No statutory caps on increases for non-homestead properties

Protest Strategies:

• Annual protests should be standard practice for all properties
• Protest deadline typically May 15th or 30 days after notice
• Evidence-based arguments using comparable sales
• Unequal appraisal arguments comparing to similar properties
• Condition issues documentation and cost estimates
• Professional representation on contingency fee basis available

Additional Tax Reduction Strategies:

• Separate business personal property from real estate
• Homestead exemption for primary residence ($40,000 state + local)
• Over-65 exemptions if applicable
• Disabled veteran exemptions if applicable
• Agricultural exemptions for qualifying properties

Property tax management is particularly important in Texas where it represents a larger portion of operating expenses than in most states. Successful investors budget for regular protests and factor increasing assessments into long-term projections.

Federal Income Tax Strategies

Deductible Expenses:

• Mortgage interest (subject to TCJA limitations)
• Property taxes (subject to SALT limitations)
• Insurance premiums
• Property management fees
• Repairs and maintenance
• Utilities paid by owner
• Marketing and advertising costs
• Travel expenses for property management
• Legal and professional services
• Depreciation of building (27.5 years for residential)

Advanced Tax Strategies:

• Cost segregation studies to accelerate depreciation
• Bonus depreciation for qualified improvements
• 1031 exchanges to defer capital gains
• Real estate professional status for active investors
• Self-directed IRAs for certain investments
• Qualified Business Income (QBI) deduction optimization

While Texas has no state income tax, federal tax optimization remains critical for maximizing returns. Consult with tax professionals specializing in real estate investments to develop a comprehensive strategy tailored to your specific situation.

Entity Structuring for Tax Efficiency

Common Entity Options:

• Individual Ownership: Pass-through taxation, simplest structure
• LLC (Disregarded Entity): Pass-through taxation with liability protection
• LLC (S-Corporation Election): Potential self-employment tax savings
• Series LLC: Texas-specific structure with segregated assets
• Limited Partnership: Multiple investor structure with tax advantages

Entity Selection Factors:

• Number of properties owned
• Active vs. passive management
• Portfolio growth plans
• Risk profile and liability exposure
• Estate planning concerns
• Self-employment tax considerations

Texas-Specific Considerations:

• No state income tax on any entity type
• Texas Franchise Tax applies to certain entities (generally exempt under $1.18M revenue)
• Series LLC available under Texas law (not recognized in all states)
• Texas has flexible LLC formation requirements
• Property tax treatment generally unaffected by entity type

Entity structure decisions should balance tax considerations with liability protection and operational efficiency. The right structure often evolves as your portfolio grows and investment strategy matures.

Expert Tip: For Texas investors with multiple properties, consider the Series LLC structure, which is particularly well-suited to real estate portfolios. Each property can be placed in a separate series, providing liability isolation between assets while maintaining the administrative simplicity of a single legal entity. This structure requires only one formation filing, one EIN, one tax return, and one franchise tax report (if applicable), while providing nearly the same liability protection as multiple separate LLCs. Series LLCs are well-established in Texas law but require careful documentation and maintenance to preserve their benefits.

Traditional Sale

Best When:

• Significant appreciation has accrued
• Local market conditions favor sellers
• Major repairs/renovations are approaching
• Investment goals have changed
• Portfolio rebalancing is desired
• 1031 exchange into other property is planned

Preparation Steps:

• Strategic improvements for maximum ROI
• Professional photography and marketing
• Timing based on seasonal market patterns (typically spring)
• Tenant coordination (selling vacant vs. occupied)
• Tax planning to minimize capital gains impact
• 1031 exchange planning if applicable

Cost Considerations:

• Agent commissions (typically 5-6%)
• Closing costs (1-2%)
• Repair negotiations from buyer inspections
• Capital gains taxes if not using 1031 exchange
• Tenant relocation costs if applicable

Texas residential real estate typically sells quickly compared to national averages, with major metros averaging 14-45 days on market depending on price point and market conditions. Timing can significantly impact sale price, with spring typically bringing the most buyers and highest prices.

1031 Exchange

Best When:

• Significant capital gains have accumulated
• Continuing real estate investment is planned
• Upgrading to larger/higher-quality properties
• Switching property types (residential to commercial)
• Moving investment to different markets
• Consolidating multiple properties into fewer larger assets

Key Requirements:

• Like-kind property (broadly defined for real estate)
• Equal or greater value to defer all gain
• 45-day identification period
• 180-day closing period
• Qualified intermediary to hold proceeds
• Same taxpayer/entity on title

Texas-Specific Considerations:

• No state capital gains tax to consider
• Title companies familiar with 1031 procedures
• Reverse exchanges more common in competitive markets
• DST (Delaware Statutory Trust) options available
• Property tax reassessment after purchase

1031 exchanges are powerful wealth-building tools that allow Texas investors to preserve equity and defer taxes while strategically improving their portfolios. Advanced planning is essential, ideally beginning 3-6 months before the planned sale.

Cash-out Refinancing

Best When:

• Significant equity has accumulated
• Interest rates are favorable
• Property continues to cash flow after refinance
• Capital needed for additional investments
• Tax-free cash extraction preferred over sale
• Long-term hold still desired

Refinancing Considerations:

• Typically limited to 70-75% LTV for investment properties
• Requires income verification and credit qualification
• Property condition and appraisal critical
• Closing costs typically 2-4% of loan amount
• Impact on cash flow with new loan terms
• Prepayment penalties on some commercial loans

Refinancing allows investors to access equity without triggering tax events, effectively leveraging appreciation while maintaining ownership of appreciating assets. This strategy is particularly effective in Texas markets that have seen substantial appreciation, such as Austin, Dallas, and their surrounding suburbs.

Seller Financing/Owner Financing

Best When:

• Higher sale price is priority over immediate cash
• Steady income stream is desired
• Conventional buyers facing tight credit markets
• Property has challenges for traditional financing
• Tax benefits from installment sale desired
• Higher interest returns compared to other investments

Texas-Specific Considerations:

• Texas has specific legal requirements for owner financing
• Special disclosure forms required by law
• Dodd-Frank compliance for multiple transactions
• Foreclosure rights and procedures different than traditional lenders
• Title company facilitation recommended
• Servicing companies available for payment collection and accounting

Seller financing can create win-win situations by helping buyers with limited conventional financing options while providing sellers with higher sale prices and potentially favorable tax treatment through installment sales. This exit strategy has grown in popularity during periods of tight credit or rising interest rates.

Expert Tip: When planning your exit strategy in Texas markets, consider the “pre-marketing” approach to maximize value. Before listing publicly, work with your agent to quietly market the property to their investor network, sometimes called a “pocket listing.” This approach works particularly well for tenant-occupied investment properties, allowing targeted marketing to investors who value the existing tenant and cash flow. This strategy can reduce disruption to tenants, minimize days on market, and often results in cleaner offers with fewer contingencies from experienced investors. If this approach doesn’t yield acceptable offers within 2-3 weeks, proceed with traditional public marketing.