Hey Gang,
I have everything line up to do some wholesaling/short sales, etc. here in the phoenix area but the burning question is I need a niche! Among the thousands of homes a buyer can choose from, how can I make mine more appealing then all the others so my house won’t sit.
I want to focus on doing a double close so I guess my question is what type of buyer am I looking for in this market that needs and wants my help to make thier purchase???
If you’re going to be wholesaling, then you need to be offering a great deal.
You need to find out what your end buyers are looking for- how much of a discount do they want…
You have to get out in your market and talk to investors and see what they are buying. Once you figure that out- go find it for them.
Steph
This is an interesting post. This is one of my primary investing area’s so I know this market pretty well.
Arizona is one of the four hardest hit states for real estate losses and foreclosures, along with California, Nevada and Florida.
When you talk about Phoenix because it is a rather spread out metropolitan area investors may seek properties closer to there home, either newer properties with lighter rehab or older properties needing extensive remodel.
The key thing right now for investors is we have a huge number of properties to choose from, not implying that are market is exclusively investors but since “End User” Family buyers are seeking some of the same properties there is certainly a diverse group of buyers.
Of the 40,000 foreclosures last year in Phoenix, roughly 30,000 of them were sold by the lender as an REO. The balance of these properties are being sold by auction. The REDC is the largest auction company handling the largest number of properties in Phoenix, but not the only one.
This large auction inventory has helped create a large number of “Corporate Wholesalers” who buy extremely large quantities of properties and turn them to investors for a small immediate profit.
Some of these companies are turning a thousand properties in a year. Some average five per day seven days a week, in all shapes, ages, styles and sizes and these “Corporate Wholesalers” offer immediate Hard Money and as quick as 48 hour closings.
You can’t beat that with a stick!
We buy and flip properties and are capable of doing between 30 and 50 a year or more, we are good at what we do and we produce from junk properties pristine homes with attention to detail.
If I knew exactly what we look for I could communicate it in words, but things change here almost daily, one area can be great and become less desireable in 3 or 4 months. Another bad area may become desireable because of changes in the economic climate.
Holding for rentals or flipping is the most popular investment avenues in Phoenix right now, but that could change by tomorrow!
Hi Goldriver, Thanks for the reply. Yeah I’ve beating my head trying to figure the next wave. With so many governmental changes and end buyers having the ability to by the same good deals as anyone else, limited buyer pool, tougher lending requirements, etc… I’m at a lost!
I do have a friend who is part of a small investor group that bought 5 homes dirt cheap, rehabbed lightly and place on the market. Their niche being the home has some equity(selling below market) and can cash flow for an investor. It’s a buy and hold strategy that requires possible carrying costs.
I’m looking for a get in/get out model. I know tough in this area but with so many houses ther has to be something that can work.
I wanted to focus on kind of doing what they are doing without holding anything(double closing). Thus finding a unique buyer.