Best Real Estate Markets for Wholesaling and Why
“Which one are the best real estate markets to invest in?” That is one of the most popular questions I have been asked lately. And for good reason.
Real estate investing has become more mainstream, with the popularity of real estate coaching programs, podcasts, YouTube videos, tv shows and so on. A lot more people want to get into real estate investing. But a lot do fail. Why? Most of the times surprisingly is not because of the validity of the information given in the training.
It comes down to 2 simple key factors:
- Discipline of the real estate investor to apply the information;
- Research of the best real estate markets at any given time.
If you went out and started looking for gold, you would not just randomly start digging anywhere and expect to find it. You would do your research and find out where most likely you would be able to locate gold.
Same thing for the best real estate markets.
How do you determine which are the best real estate markets for wholesaling?
The first thing to keep in mind is that when you are a wholesaler, you basically service 2 types of investors:
With that in mind, you want to locate where the rehabbers (fix and flip) and landlords (buy and hold) are really purchasing properties right now.
Therefore you narrow down and research the areas where:
- A lot of investors are buying right now (rehabbers and landlords;)
- Inventory supply;
- Days on the market (before properties sell.)
A word of warning for Inventory Supply. There are certain cities where there is a lot of inventory, but the properties are so cheap and highly distressed, that there is no use for wholesalers to tap into highly discounted properties: the investors have plenty of resources to find these properties on their own. For instance, Detroit and Indianapolis fall into this category. Now these cities are good for buy and hold, but not for fix and flip or wholesaling.
According to Realtor.com, these are some of the best cities to invest in 2020. As you notice, a lot of them are smaller cities – less competition and very good supply and demand:
- Charleston, South Carolina
- Chattanooga, Tennessee
- Memphis, Tennessee
- Rochester, New York
- Colorado Springs, Colorado
- Tucson, Arizona
- Boise City, Idaho
I would like to add a few larger cities, which deserve special attention for wholesaling:
- Jacksonville, Florida
- Philadelphia, Pennsylvania
- Chicago, Illinois
- Houston, Texas
- Spokane, Washington
Once you have your top market picked out, now you have to build your marketing strategy and align your “boots on the ground” for the area (if you are not local to the area.)
Would you like to learn more about how to wholesale locally or virtually
and close a deal in less than a month? Checkout this Free Ebook:
7 Simple Steps in Closing a Real Estate Deal in Just 3 Weeks