Factors/Parameters to identify Wholesale Market

[Ahmad Nassar]

Hello!

I am getting into the wholesale real estate sphere.  Although I reside in Detroit, Michigan, I am eager to investigate the parameters/factors that will allow me to identify a wholesale market.

What types of things should investors look for in determining whether a market is a good fit for wholesaling? 

Does anyone know any good sources to find comprehensive information on this topic?

Thanks!

[Chris Piper]

1. Go to list source.com

2. Set-up a free account

3.  Mouse over "Investor and foreclosure services" then click on "Absentee Owners."

4. Under Geography, drop down and select by county. Then drop down and select your state, and the same with your county. Once you've clicked on your county, click the "Add" button to the right. Scroll down and click on "Next."

5. Under "Available Property Type", scroll down to Residential: SFR. Next, click the "Add" button to the right. Now scroll down the page to " Last Market Recording Date" and choose a preselected time frame. I usually use 3 months or 1 month. This will give you the freshest numbers, but you can go 6 mos or even 12 mos if you aren't getting enough results. Scroll down the page and click "Next" at the bottom.

6. Scroll down to "Corporate Owned properties" and click on "No Preference." Scroll to the bottom of the page and click "Purchase List." You aren't actually buying anything, you're just acting like you are.

7. Now click on the "Purchase Partial List" tab. Then, click on "Custom Selection." Under "Group Properties By", drop down and select "Zip Code." This will break down the numbers by zip code for you. Now you can export the list to an Excel file, or just use it to see which areas to focus on. Pick the zip codes with the highest number of records. Maybe the top 5-10 zips, and focus on getting deals under contract in those zip codes only. This way, you already know that cash buyers are buying in those zips, which will make it MUCH easier to assign your deal to a cash buyer.