So I just attended a two day REIA convention and networked with a lot of real estate investors. Honestly, many of them were new and the ones that were seasoned didn't seem to be able to give it to me straight when I told them I was a new wholesaler (BRAND new) and was looking for buyers. I asked what areas were good and what they were looking for. I got a lot of answers that seemed to contradict much of what I was told about wholesaling (pull up a chair because this is going to be a looooong post).
"Wholesalers should be trying to find the run down properties in lower income neighborhoods on the cheap."
I was telling buyers that I targeted said areas and most of them told me they were NOT interested in said properties. They all wanted to flip or buy and hold properties in "hot" neighborhoods with good school districts (Pittsburgh neighborhoods Squirrel Hill, Shadyside, Lawrenceville, etc.). I'm not even sure how I would profit from finding these types of houses as they are typically well maintained and people trying to sell tend to have realtors (which negates the need for a wholesaler I think).
"REIA provide opportunity for networking and FREE info."
There were 8 speakers and all 8 asked me to swipe my credit card once they were done speaking. I felt like they gave me a dumb down sample size of their strategy and told me to make it work I need to "invest" in their idea. As far as networking, there were people there that have been in the real estate game for years and didn't seem to know much more than me when I asked them questions about various strategies. When I was telling them about my strategy I saw a lot of blank stares after about 30 seconds of speaking. For all the knowledge, experience, and advice thats out there I feel like Real Estate is more of an art than a science. Amy I wrong? There is sooooo much conflicting info coming from "experts" left and right. Very frustrating.
Also, how does one go about learning the market? I've heard trending the MLS. I've also heard that neighborhoods have a 5 year plan that's public record. How would I get a hold of this?
Don't know anything about your area but when the rehab guys said not interested they gave great advice. I know some buy and hold investors that deal in such areas but war zones are a very long term plan and not worth all the tums moments generally.
My brother and I when we were new dealt with such areas because that was where we basically had friends and grew up in the old days. Our goal was was to turn things around and recreate the old days. We were idiots and soon adopted the bread and butter or better mindset. Trying to save the old neighborhoods was like trying to empty the Pacific Ocean with a bucket. The same amount of time and effort elsewhere produced 10 times the income.
I appreciate the response.
"War zones" are the low income-type neighborhoods? These war zones... you mentioned long term investing strategies... would that appeal to buy and hold investors? So when I think buy and flip investor, that would be the better neighborhoods with good school districts and the buy and hold can be either or correct?
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Get the Ultimate Beginner's Guide
Sign up today to receive the popular eBook for free!