Wholesaler Looking to Partner w/ Investors

[James Porcelli]

Hi all,

Just started getting into wholesaling, been a tough journey over here in Long Island NY. Looking for a couple of pointers on how to find the best markets to tap into.

Also looking for investors to partner with, I can wholesale virtually given your buy box if you're in a good market I'm willing to help!

Thank you all in advance!

[Josh Stout]

Quote from @James Porcelli:

Hi all,

Just started getting into wholesaling, been a tough journey over here in Long Island NY. Looking for a couple of pointers on how to find the best markets to tap into.

Also looking for investors to partner with, I can wholesale virtually given your buy box if you're in a good market I'm willing to help!

Thank you all in advance!

 Hey @James Porcelli

I'm going to drop a quick reference sheet for market selection. It should go without saying, there are endless ways to win in this game so ultimately you'll have to find what makes sense and works for you. With that said, here are some general guidelines I find useful for market selection. 

Active Market

• High and/or consistent transaction volume. Cash transactions are a good indicator of investor activity.

Population/Market Size

• The smaller the area, the smaller the pool of sellers/buyers. Super dense urban areas are a different animal as well. Populations in the 300-500K range are generally a good sweet spot.
• Roll multiple smaller cities/towns up into one larger “target market” if you need to

Reasonable Property Prices

• Staying at or slightly below median market value increases your odds of success since there are more buyers/sellers
• Higher price points can be very lucrative but typically require more time/money for marketing

Growing or Stable Economy

• Target market should have positive economic growth expectations.
• You may be able to find deals in areas that aren’t doing well, but if you can’t dispo them it won’t matter

Diverse Pool of Buyers

• You’ll mainly be selling to investors, but having a diverse buyer pool gives you more options in terms of exit strategy

Regulatory Environment

• Low regulatory markets can help keep things simple
• Keep in mind that regulations change quickly in many areas, so it's important to keep and eye on your markets for change
• Things to consider; rules regarding holding a license as a wholesaler, probate laws/processes, STR rules, etc

Strong Rental Market

• Think from the end buyers POV. If the rental market is not favorable, you’ll likely see less investor activity and therefore less potential buyers

Availability of Data and Resources

• Access to market data and networking resources can be a huge benefit
• Consider things like; access to county/court data, is it a non disclosure state, etc

Community and Economic Trends

• Understanding local trends/issues can provide crucial insight into your target market
• You can operate virtually, but it’s still important to develop expertise in your target market

*** Good market selection is not a guarantee of success. When done well it simply helps remove or reduce obstacles that could make it harder than it needs to be to win.