How to Determine the Best Place for Wholesaling Homes
What’s the best way to decide the best place for wholesaling homes right now?
What factors should real estate investors take into consideration when choosing where to wholesale homes, how do data sources make a difference, are these the same criteria to look at for any other real estate strategy, and what’s the most important element for wholesalers in particular?
There is some advice out there on market research and selecting the best markets for investing in property, but it is very fragmented. Most of it judges markets on just a couple of criteria, missing many other important considerations. Even the more comprehensive reports often focus primarily on buy and hold investments, which are not always the same areas that wholesalers may want to focus on due to timeline differences.
Some of the factors to weigh in your decision include:
- Political climate
- Country stability
- Laws
- Current position in the housing cycle
- Volume potential
- Availability of discounted property
- Speed of house price appreciation
- Rental demand and rates
- Unemployment figures and trends
- Migration trends [in or out]
- Availability of financing
Many investors will find watching many of these metrics basic common sense, but then let themselves down by relying on flawed data. There are plenty of statistics, indexes and opinions out there, but many of them are biased, based on stale data or faulted calculations or just wrong.
Sites like Zillow or following press headlines can offer some very rough direction and help to narrow down the search but are not precise sources of data that wholesalers can rely on when it comes to putting money and their incomes on the line.
Then the individual deals themselves must be taken into account. There can be incredible deals found in severely battered markets and terrible choices in great markets. However, it can be wise to pinpoint one or two primary areas for investing to simply things, and get really great at mastering flipping houses for bigger profits.
Regardless of future values, rental spreads, jobs or migration, what’s most important to wholesaling homes profitably? Above all, it should be immediate exit. Forget speculation, forget what’s going to happen in 10 years, or even next year. Make your money when you buy.
Providing you already have an end buyer lined up, and hopefully a couple more as backups it really doesn’t matter what is going on in the market, it is instant profit.
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