Wholesaling

[James Annello]

hello everyone,

I have recently began reading some books and online articles on real estate investing. I have a short history of credit and not enough money saved up to get a conventional loan through the bank. So creative investing is my only option at this point. I recently read a book about wholesaling real estate and it mentioned finding specific "areas" where certain types of investors do work. For example it mentioned rehabbers prefer to do business in "first time buyer areas" and landlord/rental investors prefer to do work in "low to middle class areas." The second area I understand, I just look for middle class neighborhoods and that is a good starting point, but I do not quite understand the first area. Is there any way to find which "areas" are mostly first time buyers, and to further the question, are there any other "areas" that  certain investors like more than other that you could help me distinguish.

Thank you very much!

James Annello

[Jackie Lange]

Hi James

It is better to build your buyers list before you even start looking for wholesale properties. Ask your buyers where they want to buy and what price point.  

Rehabbers have different criteria in different parts of the country.  Many do not want to work in first time home buyer areas because it is harder for their buyers to get financing.  

It has been my experience (in 20 years) that newbie rehabbers want first time home buyer areas simply because they are afraid of the price of median prices homes.  It is much better if you work with experienced rehabbers instead of newbies.  

So, ask your potential buyers where they want to buy, where they don't want to buy and what price they usually pay.  

Hope this helps

Jackie