So many Wholesale deals showing up in my inbox -Why ?

[Jeff Matthews]

So lately I know the interest rates are up and it's getting much harder to sell the properties . I also see a flood of wholesale deals showing up in my inbox ,With price reductions . it seems like people are trying to dump their properties . Much more than I have seen in the past . My question is it a opportunity to buy now since everyone is trying to get rid of inventory or is it more dangerous to buy now since you might be stuck carrying the property with no one to buy it .Im assuming that the properties are being wholsaled now a lot more because it's going to be harder to flip . The deals i'm getting in my inbox are from much more experience investors than me . Is there something else im missing ?

[Juan V Lopez]

Hey Jeff, I'm an investor in the Vegas market too brother – definitely been seeing much higher inventory and investor activity lately (thus resulting in more wholesale deals).

This is happening in a lot of cities, not just Vegas. Inventory is going up, people are realizing they missed the window to sell their home to a buyer who would pay $20K over listing and now they're more motivated to sell quickly. Who buys properties quickly? Investors.

Regarding whether it's a good market to buy or not – my opinion is yes, so long as you're buying with enough margins.

Example: If you buy a house for $300K with $40K rehab and $440K ARV, but then when it comes time to sell it, you can only get $410K for the home, you'd still take that $70K gross profit. All day. As long as your margins are wide enough to absorb a dip, you're solid. Yes, houses are taking more time to sell, but that's a normal market. What we saw in 2020-22 was bonkers.

Having clear criteria on what you can buy and what margins you need is the biggest key for us investors right now.