Wholesaling – What criteria do you use when deciding if an area is good for wholesaling?

[Robert W]

I was hoping that some of the BP Wholesaling Forum readers would be willing to share the criteria and/or data points they look at when determining if an area is good for wholesaling…

…now I am confident that BP’s resident wholesaling optimist, Ryan Webber, will say something like “anyplace any time is great for wholesalingâ€â€¦..and I agree that there is much sage advice in this point of view….

….however, I was looking to see if any of you used more discrete criteria and/or data points to determine if one area was better than another or good at all and if so, what that criteria was.

Thank you in advance for reading and your consideration of my query.

[Joey Hamaoui]

I would say you probably want to see which area has a lot of cash sales in the last 12 months. If you're just starting you probably want to be in an area close to home. I would try to focus on a market you know or get to know the market.

[John Bryson]

This is a tough one.  Not sure there's a specific "area" that's good for wholesaling, I think it's more about the margin.  For example, if an area doesn't have any sales, but you speak with a seller and after running all the numbers realize that you'll be able to acquire the property for an amount that would be appealing to an investor, then you have your margin.  Of course if you can do this in areas where your investors want to buy, all the better.  Sometimes the best areas to attack are the least utilized(sought after) as there's not much competition.

This also depends on what type of real estate you're wholesaling....Trying to wholesale land is much different than trying to wholesale single family homes....or multi-family homes ect.

If I had to answer your question as written, I'd say look for neighborhoods that are gentrifying and appreciating...the earlier you catch these, the more quickly you can become known in that neighborhood as "The person who'll buy my house".

Hope this helps, feel free to reach out with any questions.

-John