How to choose a market to wholesale in.

[Logan Clark]

My wife and I are about to start a wholesaling business, and we are wondering what metrics are important when analyzing potential markets to do business in. Rent/price ratio? Market stability? What all do we need to look at to determine if a market is good for wholesaling?

Does anyone have any tips on some specific markets that are conducive to wholesaling right now? Thanks!

[Will Barnard]

Any market with willing and able buyers and a motivated seller is a market to wholesale. The real question is, how are you gong to operate your "wholesale business"? If you intend to do what most others do, you will likely be entering into the illegal or immoral arena so it is important to know HOW to do it right and legally. Second, knowing what your buyers want is key to moving forward. Some will argue find a good deal and buyers will come. While that may or may not be true, I argue why not find what your buyer or buyers are looking for and thus, you know in advance who your buyer is and what they want. It also allows you to operate legally without a license if you contract it correctly. Locking purchase contracts with assignment clauses and then publicly marketing to others expecting a fee for brining buyer and seller together is brokering without a license and in many states, punishable by fines and even jail in some cases.

Working in your own backyard where you know the market and know the conditions will give you an edge. While doing so long distance is possible, it can create other hurdles, not just logistics.