How do I know which area I should be wholesaling in?

[Redstar1324]

I live on the outskirts of Orlando. When I get my next signs, I will be putting them up in Sanford, a low income area.

Someone once told me that in real estate, it's just as much WHERE you do something as much as what you do.

I just heard that houses are being sold in one day in the area around the theme parks. I'm only one person, but I do have a car. I could go as far north as Deltona or as far south as Kissimmee. Would it make a difference?

How do I know where the real estate market is HOT? What statistics determine this? (average days on market?) And what statistics might be especially useful to wholesalers?

To a rehabber or home builder, average days on market would be extremely important.

[Gold River]

Hi,

    I know I answered this already for you some months ago!

Are you a realtor? Do you list property on the MLS system? What is the average days on market for a home?

What are you wanting to accomplish? Are you wholesaling? Who is your buyer? What does your buyer want? Where does your buyer want it?

Now if I were wholesaling I would buy what my buyers want, where they want it!

Would I buy a hunting cabin in Idaho for a buyer wanting a home in Orlando? I could but I would have a really tough time selling!

So the only reason I would go into Sanford is I have a buyer wanting a home in Sanford? Otherwise I would be taking a contract with maybe a maximum 20 day window to assign a contract on a home, when realtors take twice that time average to sell a home! And have the MLS system with other agents and brokers to do it!

And the minute I fulfill that home to my Sanford buyer I leave Sanford and go to Orlando to fulfill those two homes my buyers need in Orlando and as soon as I fulfill my buyers needs in Orlando I go to Kissimmee to fulfill those 3 houses my buyers need in Kissimmee and as soon as I fulfill my buyers needs in Kissimmee I go to Daytona to fulfill that one home my buyers need in Daytona!

Dam I didn't know I was that smart, wow so I buy wholesale homes for my buyers where my buyers want to buy!! Yreka

So if my buyer needs a home in Sanford does that mean he probable has an end buyer who wants to live in Sanford? Probable
So if my buyer needs a home in Orlando does that mean he probable has an end buyer who wants to live in Orlando? Probable
So if my buyer needs a home in Kissimmee does that mean he probable has an end buyer who wants to live in Kissimmee? Probable

Damn I am brilliant! So basically I think I just learned to buy wholesale homes my buyers want where they want it! Whew

Boy that's way to much for my small mind for one night:


                            GR

[Gold River]

Hi,

     So I want to question the buyers on my buyers list to see what they want to buy and where they want to buy it?

I guarantee your buyers don't just say Florida as they have a specific area in mind, a specific bedroom / bathroom mix in mind and a specific type / style of home in a specific price range!

So I want to start right from the get go networking and marketing / advertising to build my buyers list?

That way "Big Bob" the Fix & Flipper who knows he wants to be in Orlando can find a wholesaler who will find him good homes!

SHOW ME THE MONEY!!! 


                       GR

[Randoskie]

I just started advertising in other States for bird dogs. I inform my finders to search the low to mid income areas for the types of houses I want, which is chewed up junkers. I don't know which areas of each city are low income, but the bird dogs do.
I can always find buyers if the price is right, these low income properties still generate good rents for investor/landlords.
So, that's a clue, concentrate on the lower income neighborhoods first.
I also target distressed sellers, there will always be a percentage of sellers that need to sell because of financial hardship, like medical, job loss, death in the family, etc. But the way I find these is with door knob hangers and direct mail.
Also, my buyers are not picky, if I find a junker in the nearby towns that has good profit potential, they want it. So I don't restrict my searches to specific areas. If you find a good deal in Knumnuts Alaska, I want it.
Now stop asking questions and take action.

[Redstar1324]

I just started advertising in other States for bird dogs. I inform my finders to search the low to mid income areas for the types of houses I want, which is chewed up junkers. I don't know which areas of each city are low income, but the bird dogs do.
I can always find buyers if the price is right, these low income properties still generate good rents for investor/landlords.
So, that's a clue, concentrate on the lower income neighborhoods first.
I also target distressed sellers, there will always be a percentage of sellers that need to sell because of financial hardship, like medical, job loss, death in the family, etc. But the way I find these is with door knob hangers and direct mail.
Also, my buyers are not picky, if I find a junker in the nearby towns that has good profit potential, they want it. So I don't restrict my searches to specific areas. If you find a good deal in Knumnuts Alaska, I want it.
Now stop asking questions and take action.

Do you put your full first and last name on your door hangers? I'm a little weary of this.

Perhaps I could call myself "Redstar Capital Group."

[Luke9686]

Dude, just f-cking do something.  Anything except posting more questions on this board.  This $hit is not rocket science.  If you don't want to put your name on door hangers then don't.  What difference does it make to people on this board?

Do something!!

[Redstar1324]

Dude, just f-cking do something.  Anything except posting more questions on this board.  This $hit is not rocket science.  If you don't want to put your name on door hangers then don't.  What difference does it make to people on this board?

Do something!!

I am. I'm remodeling my house and managing an RV park.

[Randoskie]

Haha, Luke, chill out. You can visit me in my cave in Northern Idaho, where I hide out form all these insane questions. We will have a great time, skinning Raccoons, eating Moose Leg, spear fishing for trout, hunting wild boar with nothing but our buck knives. It will be glorious.
Personally I'm suspicious of Wholesalers that only use a first name or a company name. What you got to hide? You gonna do some shady s__t? I use my full name in all my ads. I am proud of the way I can help my sellers and buyers and bird dogs etc.
using your full name makes things personal, the sellers get all warm and fuzzy and confide in you.
How bout taking some action, I'm not talking half ass, like asking questions on this site, I'm talking bout finding some frikin deals and making money.

[Redstar1324]

The "action" you're talking about is buying bandit signs and placing them in the ghetto. That's great. I might do that, too, but...

I'm going to rehab houses. I have people I know from the RV park that can fix anything for cheap and need the money. I'm going to ask my dad for a loan to cover the down payment and the interest payments on the hard money loan.

All these questions were just determining which course of action to take. It's a good thing I found out that single family homes only profit ~$200/month before I went ahead and tried that. Who wants to spend a 20% down payment on a $150,000 house ($30,000) just to make it back $200/month at a time?

Oh, I suppose you're going to tell me that I should find a private lender to fund 100%, that way I don't have to pay the down payment. That way, I'll profit $75/month and spend all my time doing it.

[Randoskie]

I heard of a guy that wud look for Distressed businesses, not high end but little crappy mechanic shops, transmission shops etc.
He wud negotiate a long term lease with the owners. He then wud clean them up and paint the outside, steam clean the stained concrete floor and spruce up the front office with paint. He had no trouble subleasing them for $100 over his payment.
He was often asked why wud he go to all this trouble for a lousy 100 buks a month. He wud give his evil grin and say, I have 37 of them and some pay more than 100 buks.
But I'm sure I cud still try to answer your endless questions till the Universe converges back into the big crunch and you wud still be asking these insane questions and never doing Jack frikin S__t.
I just made $28,000 wholesaling 2 junk houses, I didn't need a loan, I didn't need any Money or credit, I didn't have to ask Daddy or Mommy for money.
I try not to ridicule you and belittle you for your lack of action and flip flopping and endless redundant questions, but it's difficult, I'll be in my cave.

[andise84]

I believe it will work with a city or major cities like LA, New Jersey, Denver, etc. or any high-cost standard of living states, that is where wholesaling works.

[Randoskie]

I have discovered that some of my best deals were in smaller towns within 50 miles of my City. I can often get some really low prices on these rural fixers, and many of my buyers are in the city, cuz these rural properties rent and sell quickly. I try to stay in the city, but why wud I when these other areas are very profitable also?

[Redstar1324]

I have discovered that some of my best deals were in smaller towns within 50 miles of my City. I can often get some really low prices on these rural fixers, and many of my buyers are in the city, cuz these rural properties rent and sell quickly. I try to stay in the city, but why wud I when these other areas are very profitable also?

Well there's not enough time in the world to put signs up in every small town in the country. I wasn't getting anything from my Craigslist ads except other wholesalers.

I have talked to professional wholesalers and they say they get their best deals from direct mail.

[Randoskie]

Well, I only use half my brain or maybe less, I get my best deals from doing it all. Bandit signs, direct mail, door knob hangers, Craig's List ads and my favorite is recruiting bird dogs and other wholesalers.
You know last year I got a killer deal cuz one of my bird dogs stopped at a yard sale and the owner was selling his furnishings to live on.
He told her he lost his job and was behind in the mortgage & was borrowing and now selling his stuff.
I also like to hand out my business cards at my fav store,, Walmart, I feel sorry for these poor working people.
I tell everybody I come across how they can make money finding me houses.
I'm still only doing this half ass, But if I was making excuses and never taking action like you, I wud put a stun gun to my testies and get in gear.
rando

[Redstar1324]

Well, I only use half my brain or maybe less, I get my best deals from doing it all. Bandit signs, direct mail, door knob hangers, Craig's List ads and my favorite is recruiting bird dogs and other wholesalers.
You know last year I got a killer deal cuz one of my bird dogs stopped at a yard sale and the owner was selling his furnishings to live on.
He told her he lost his job and was behind in the mortgage & was borrowing and now selling his stuff.
I also like to hand out my business cards at my fav store,, Walmart, I feel sorry for these poor working people.
I tell everybody I come across how they can make money finding me houses.
I'm still only doing this half ass, But if I was making excuses and never taking action like you, I wud put a stun gun to my testies and get in gear.
rando

You said you lost on your first attempt at rehabbing. Any reason why?