You Can Wholesale in any Market
A widely-held belief among investors maintains that – at least in the current housing market — wholesaling only makes sense in big cities with high inventory.
I don’t ascribe to that belief, and I hope that would-be wholesalers aren’t discouraged by it. Fact is, wholesaling can be successfully done in any market, as long as you have the know-how, the patience, and the right team of experts on which to rely.
Here are my tips on how to successfully wholesale, no matter where you are.
Don’t Listen to Naysayers
Be cautious. Be wise. Listen to good advice. But don’t believe offhand realtors or investors who tell you that wholesaling can’t be done in small markets, or during times of low inventory. There are deals to be had pretty much everywhere – finding them is just a matter of diligence, skill, and persistence.
Get on the Same Page With Your Realtor
To make wholesaling a successful endeavor, you’re going to have to work closely with your realtor to find the best deals. He’s going to have to understand your process, your goals, as well as the types of homes you’re looking for. If he seems hesitant about whether you’ll be able to get the kind of deals you’re looking for, remind him that you’re interested in those houses other folks won’t touch.
Consult the MLS
No matter what you might have heard, finding deals on the MLS is possible. You can up your chances of digging up real estate gold on the listings giant if you adopt a niche market, and if you target houses no one else will – those that have been listed for a number of days, or have significant issues.
The market of low-cost homes is sparser than it has been in quite a while, so you are likely to come up against some stiff competition, especially in smaller markets. You’ll have to develop a thick skin and sharp instincts. You’ll also have to develop a solid and effective marketing plan.
Fostering a great rapport with realtors, attorneys, and above all, potential clients is one of the best ways to find (and land) really good deals in any market. So, network like you mean it. Chat up everyone you know, and hand out business cards and flyers every chance you get. Attend investment and entrepreneur meetings, join (or start!) investment clubs, and buy booths at the local festivals. Find ways to your name out there.
Always conduct yourself in a way that’s professional and personable, and go out of your way to establish a reputation as a trustworthy and competent professional. When someone has a great lead on a property, they’re much more likely to pass it on to someone they know, like, and trust to do the job.
With a little hard work and determination, the challenge of figuring out how to profit in a lower-inventory market can be exciting, and the rewards can be worth it all.