how is the market for a wholesaler in Georgia?
It is heated with a lot of competition to find deals. If you can provide deals you will be in good shape. A lot of wholesalers try to daisy chain deals which is less likely to be viable long term.
Thank you for the input. It says you are an investor out there, how is the rental market for buy and hold? Or is it better to go more into flips?
@Taronda Ransom What @Stan Sugarman is describing is the Atlanta metro market. It's crazy down there. I'm on a bunch of wholesaler buyers lists and get lots of properties sent to me every week. I just stay away from it.
But there's plenty of room for newer wholesalers in smaller markets like my small town of Rome about an hour from Atlanta. Wholesalers have only moved in here in the last year or so and I bought my first house from a wholesaler just this year.
So I would recommend trying some of the smaller towns. But you have to do a lot of homework. Some of the neighborhoods here someone would have to pay me to take a house but a street over the houses are highly sought after so just watch what you use as comps.
To answer your question about buy and hold versus flip, it depends on the price point. In most areas of Atlanta you're talking flips only because the properties are just too expensive.
In my small town we have both and I do both. Not always true but my rule of thumb is below about $120k it's a buy and hold rental. Above that I would look to flip it. I can flip stuff lower than that but the profit margin just isn't worth it.
I mostly lend now as prices have risen dramatically in Atlanta. Almost all of the deals are flips right now.
@Jeff Kehl Very interested in hearing about Rome. I feel like the smaller markets are the only thing remaining for vanilla buy-and-hold strategy right now in Ga. What sort of areas are the best to live in? I actually haven't been there, but it's one of the few places with an actual supply of houses!
Where are the major transient populations staying in Rome?
@Richie Choy Rome is a bit of a hub in this area. We sit in the middle of a triangle if you connect Atlanta, Chattanooga and Birmingham. And there isn't a whole lot in that triangle, a lot of the counties are very rural and poor.
So, for instance we have two major hospitals and pull for medical needs from 9 counties around us. We also have 4 small colleges and universities. And we have more restaurants and hotels than a town out size normally would because if someone from Cherokee county Alabama wants to go out to eat a lot of times they will drive to Rome.
We also have quite a bit of manufacturing here but it is fairly small, specialty manufacturing, there aren't any really large plants like there used to be.
So, to answer your question, we get lots of medical, education and manufacturing tenants. And in the apartments, lots of folks that work service jobs in restaurants/hotels.