Hello everyone! I'm a rookie real estate investor and I've been looking into wholesaling and I was wondering if wholesaling in a rural area is a good idea? I live in a small town of east Texas and I've been researching a lot about wholesaling but still don't know where to start. I was wanting to start in my hometown but I think it's a bit rural and was wondering if it was a good idea to start here? If anyone who's had a similar experience comes across this I would very much appreciate some advice as to how you handled the situation!
@Bryan Salvador Yes you can. There is always someone looking to invest in real estate. I know folks doing just fine in small towns. Your buyers don't have to be local either. I buy in a town 2 hours from my home. Just be sure to lock in the contracts cheap.
Where in East Texas?
@Bryan Salvador it is very doable but does have some obstacles. I wholesale in CA and FL. When I look into contracting properties in rural area I often have a harder time finding buyers.
2 main reasons:
1. Less investors are looking to spend their money there. As @Kyle Mccaw mentioned people do buy in towns further away, but you will of course have less demand
2. A lot less comps are available in rural areas. What this means is you will have a harder time justifying the ARV of a property you have in contract, leading to less chance of you assigning for a good profit/
Just a quick pointer. You DO NOT need to wholesale in an area local to you. It does make things easier sometimes, but don't let that be a factor that stops you from wholesaling out of your home town.
@Kyle Mccaw I live in Rusk, TX and this is where I was thinking about starting out.
start where you are. You understand your town. Where are the desirable areas vs the areas people avoid? I'm in Livingston and having some success. The bigger problem is just that you will likely run out of home owners to call on and/or it won't take too long until your driving for dollars strategy has already exhausted the inventory. But once you have done a few deals the process will become less intimidating as will the idea of branching out!
Start where you are there is always room for growth.
We wholesale to 'rural' towns - population size 1500 or so but they are within an hour from a large city. My biggest advice is to build your buyers list so when you do get a deal under contract, you know you can assign it to someone. That will also give you a good indication on if there are any investors in your area.