What comes first, the buyer or the deal? Neither.

[Lakeem Anore]

A question I often here from newer wholesalers is: "What comes first, the seller or the cash buyers list?"

I say neither one is correct. A Market Analysis should be your very first step before you begin prospecting for buyers or sellers. Analyzing your target market has a number of benefits, I'll list a few: 

Benefits of conducting a market analysis first: 

• You won't waste your time or money prospecting in the wrong areas
• You'll have a better idea of what an actual "good deal" looks like
• No more worrying about not being able to find a buyer
• You'll be able to weed out unrealistic sellers quickly
• You'll develop an expertise in a specific area over time

Learn your market, you'll get off to a better start. Here are are some things to look for in your target market: 

1. Number of SFR's with 30% or more equity
2. Number of free and clear SFR's
3.  Number of cash transactions over the last 1,3,6,9 and 12 months (graph the trend)
4. Average Days on market
5. Rent and price trends
6. Median home price
7. % of homes 2/3 under median value with 30% equity or more
8. Any large development projects going on
9. total SFR inventory
10. number of out of state absentee owners with 4+ years of ownership
11. number of in state absentee owners with 4+ years of ownership
12. number of out of state absentee owners with 10+ years of ownership
13. number of in state absentee owners with 10+ years ownership

The numbers will tell you a story.