Newbie with 10k Wholesaling budget....hmmm

[Kennedy Williams]

Hello BP Community, I am a 22 year old college student I graduate with an Accounting degree this December, I live in a small college town of about 22k people and I am trying to decide if I should try to begin my wholesaling business here in this town or 2 hours away in Dallas, TX(Way bigger population) When I go on zillow and look at the houses bought in the last 6 months with absentee owners in my town it says around 200. Which I am assuming to mean 200 cash transactions in the last 6 months. But when I do the same thing and I check Dallas' it says around 2000-5000. So I am guessing my area isnt too hot for real estate and I am trying to see where I should start spending my 10k budget and what I should spend it on...(yellow letters or bandit signs) I am also looking into getting my Real Estate license before I graduate also. I was planning on getting started immediately and putting out 100 bandit signs every friday and picking them back up on sunday. Also, I am not sure if I should get a job after I graduate or begin working for myself with this business. Any and all suggestions will be greatly appreciated! Thank you for your time and consideration! To your success, Kennedy Williams

[Will Barnard]

Kennedy, welcome to BP Nation. As Tim asked, please define your "why" for wholesaling in particular as opposed to buy and hold, rehab flip, notes, etc. That should help us better understand your abilities and goals.

The research you have performed thus far is a good start and you appear to be seeing some red flags. The most important thing here is that you knew to perform some due diligence and that you have spotted the flags in the process. Two hours away in the bigger town of the DFW area would of course produce more product, more sales, more opportunities, it would also produce more competition. While you may have less deals available in your home area, you may also have less competition. The key factor to research here is not just total number of closed transactions, but also DOM (days on market). Identify what is the most common sold property and how long it takes for said properties to sell. If these properties have low days on market on average, that is good for you and the area. You also want to pay attention to past and current inventory levels. How many properties are listed on the MLS for sale today and how many were for sale 6 months ago, 1 year ago, etc. That gives you an idea of where the inventory is headed and better prepares you in your strategy.