Which real estate market is best for new real estate wholesalers in 2013?
The news is full of headlines about various housing markets around the country every day, debating their pros and cons. Sometimes they even predict an imminent new housing bubble or paint a picture of gloom among foreclosure ridden neighborhoods for the same city in the same day. So if you are new to wholesaling houses, where’s the best place to get started?
There are various ways to pick new ‘hotspots’ from lists on industry blogs to following job growth, business relocation, rents and even birthrates. However, the truth is that there are deals to be done virtually everywhere today.
As a real estate investment strategy wholesaling homes is a little different, and may not require the extended hands on and babysitting that rehabbing and flipping or buy and hold rentals do. Still, newer investors may often find that sticking close to home is the best move. If they’ve been watching the local market, own a home there and have an eye on trends they can do a much better job of estimating values and demand, rather than on homes clear across the country that they’ve never seen.
Some investors contest this wholesaling strategy due to the fact that they are in extremely high cost markets and want to pay cash. This is almost understandable if the median home price in your zip code is $700k or $1.5 million, but educated wholesalers know that they don’t really need to use their own money to buy, and are often better not using it, even if they have the extra cash laying around.
Still, if you are in this pool, then many investors in a recent thread on a popular real estate forum suggested looking for markets within a two hour radius of home base. This can be by foot, car, air or water.
Still struggling? Perhaps try some of your favorite vacation spots where you will visit frequently anyway, and already own or would like to own a second home or retirement property anyway.
Don’t be fazed by price, niches, etc., it’s all pretty much the same game with a few quirks.
Finally, those getting into wholesaling houses that are concerned about competition from other investors and buyers may find their sweet spot in looking for the inventory. Today this may include heavily hit foreclosure markets in Florida, Illinois, Southeast Michigan, Las Vegas, New York or even Phoenix which is ramping up for another growth spurt.
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