Wholesale Strategy: What is the best market for new investors in 2013?

Which real estate market is best for new real estate wholesalers in 2013?

The news is full of headlines about various real estate markets across the country every day, debating their pros and cons. Sometimes they even predict a new imminent housing bubble or paint a doom and gloom picture among foreclosure-stricken neighborhoods for the same city on the same day. So if you are new to wholesale houses, where is the best place to start?

There are a number of ways to pick new ‘hotspots’ from listings on industry blogs to tracking job growth, company relocations, rents and even birth rates. However, the truth is that today there are deals to be done practically everywhere.

As a real estate investment strategy, home wholesale is a bit different, and may not require the outstretched hands and childcare that rehab and remodeling or buying and holding rentals require. . Still, newer investors can often find that staying close to home is the best move. If they’ve been watching the local market, own a home there, and keep an eye on trends, they can do a much better job of estimating values ​​and demand, rather than homes across the country that they’ve never seen.

Some investors question this wholesale 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 you don’t really need to use your own money to buy, and it’s often better not to use it, even if you don’t. have the extra money lying around.

Still, if you’re in this group, 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 on foot, by car, by air or by water.

Are you still fighting? Maybe you try some of your favorite vacation spots that you’ll be visiting often anyway, and you already own or would like to own a second home or retirement property anyway.

Don’t be intimidated by the price, niches etc, it’s all more or less the same game with a few quirks.

Finally, those entering wholesale houses who are concerned about competition from other investors and buyers may find their sweet spot when searching for inventory. Today, this may include hard-hit foreclosure markets in Florida, Illinois, southeast Michigan, Las Vegas, New York, or even Phoenix, which is accelerating for another growth spurt.