I currently wholesale hear in Atlanta but focus mainly on the properties that are under $100k. Are there bigger profit margins in properties at a higher price range and are buyers even considering properties at that level?
I currently wholesale hear in Atlanta but focus mainly on the properties that are under $100k. Are there bigger profit margins in properties at a higher price range and are buyers even considering properties at that level?
In my experience a lot fewer investors buy properties above median price range for the area. For properties over 200k in Atlanta I would assume most landlords are out, so you are looking at buy-sell types only, who typically count on a bigger margin than landlords.
Definitely money to be made in that market. You just have to really focus on what the buy-sell guys are looking for in that type of inventory.
Are you doing a lot of deals in the 100k range? If you can make money doing what you are doing they keep with it. If you try to target another market you need a whole new set of customers and clients (expensive). If you want to work with expensive houses become a realtor and sell to owners.
In my market, anything below $100K is a volume game. The #1 wholesaler here moves about 1000 per year but only marks up his deals $900-$1500 each. Most of these go to buy and holders, because the flip margins are not there.
Justin S., Wheelhouse Properties
E-Mail: wheelhouseproperties@gmail.com
Telephone: 4806780446
Website: http://www.wheelhouseproperties.com
Realtor, Re-modeler, Cash Buyer
As others mentioned, your market will have a large factor in determining which way is better.
If you wholesale to rehab flippers and they are mostly after sub $100k properties, you will find it harder to find buyers at higher levels unless you build a buyers list for such properties. Here in my area, $100k will get you some land and possibly a garage, no house.
My exit values on homes that I rehab flip are usually between $300k and $500k. Those I have wholesaled are all over $200k and as such, there is more room for higher wholesale fees. The higher the spread you get, the higher you can earn a fee.
Of course, the numbers game should also be considered. If you can wholesale several per month in the sub $100k level in your area and make $2k or so each, you have yourself a nice income.
Will Barnard, Barnard Enterprises, Inc.
E-Mail: info@barnardenterprises.com
Website: http://www.barnardenterprises.com
info@barnardenterprises.com
Wow 1,000 houses is impressive. Hopefully with all the new marketing and systems I'm putting into place I can do a large volume as well. I'm more of a base hit wholesaler anyway, I'm not trying to David Ortiz all of my deals lol. Thanks for the advice guys I'll stick with the below 100k but keep my eye open for anything about that looks good.
Will Barnard, Barnard Enterprises, Inc.
E-Mail: info@barnardenterprises.com
Website: http://www.barnardenterprises.com
info@barnardenterprises.com
Thanks Will, I will ask around to see if any of them will be interested.
Jeffery
I would advise you differently. I suggest to keep doing what your doing but add the $100-$125k homes to your effort. Just keep moving up a notch every now and then and expand your market each time your ready.
Will Barnard, Barnard Enterprises, Inc.
E-Mail: info@barnardenterprises.com
Website: http://www.barnardenterprises.com
info@barnardenterprises.com
After speaking with a few of my buyers, most of them stay in the sub $100k range anyway for a number of different reasons so I will stay there for now, at least until someone asks me to find them a deal in that price range.
Jeffery
Who cares what your current buyer base says, your still serving them. You want to expand your opportunities, add the next notch you won't regret it, your not giving anything up and a few of your current buyers won't care, if the numbers are good, you will see them taking a shot because they are only being asked to consider a little more and the chance to make more.
Plus many of the new buyers you find to serve would have never done a deal with you with your old limits. Don't even think about it just do it, there is no risk unless the extra $25k is to scary a price for you and will give you bad dreams plus all the extra worry about what to do with the additional income.