Very Effective Wholesaling in the Phoenix Market
I've been in contact with a lot of wholesalers and other investors in the valley as of recent.
Mostly, I'm trying to make sure I re-connect with some old friends as well as connect with new to take full advantage of now being a licensed Realtor as well as an active investor.
Its not a surprises that most wholesalers start there because of their lack of funds. Others wholesaler because they're unable to take a deal down due to a number of reasons like funds tied up on a current project, out of their desired area or even possibly out of their price range etc...
One strategy within wholesaling that I've always watched be more and more successful here in the valley(Phoenix metro area) involves a little more than your standard place a property under contract and then assign it for a fee.
Time and time again, the really successful 'Wholesalers' are actually taking down properties with personal funds/HML's ect... They're putting lipstick on a pig, placing a renter in the property and then re-selling as a 'Tenant Occupied' 'Turn-key' investment property.
While this does require a resource that most 'wholesalers' don't have.....$$$ it does provide the best and quite possibly the easiest exit strategy.
Most of the homes for sale in decent, rental desirable areas are newer homes without the need for major rehab. The lipstick on a pig statement means for the most part some clean up and little cosmetics to get it rental ready.
Having bought long term buy & holds myself as my long term strategy, I always keep up on the different areas of the valley, their rental rates, vacancies and purchase prices. While BiggerPockets lives and dies by the 50%. The Phoenix metro area can't always apply those rules but in many many places 1% can easily be done.
If you're interested in learning more about buy/hold properties in the Phoenix area or if you're a wholesaler with or without resources to fund this successful wholesaling strategy, connect with me here on BiggerPockets and I'll do what I can to help. If I can be hired as a Realtor on your team, all the better. I can provide certain insight that most others cannot.
Connect with me here, where you'll find my contact info including phone and email: http://www.biggerpockets.com/users/motiv8td
Comments (4)
Another amazing example Justin, thank you!
Nick J., almost 13 years ago
I had a great rental for an auction buy today, but no buyers lined up. Opened at 35k, rents were 750+.
Justin S., almost 13 years ago
Ya, you're right, especially for the Surprise area. That last one you found was certainly a prime example. The 1% is certainly more common though and more easily found.
Nick J., almost 13 years ago
I think we can do much better than 1%... $70k purchase w/ $925/mo rental being the latest example. 2007 built, 3/2, no work needed, move in ready.
Anson Young, almost 13 years ago