I've been researching the market here in Austin for the last year and it really seems like wholesaling at the usually healthy (ARV (.70)) multiplier hasn't been having the same results. Obviously this is because it is such a hot market. I guess my question for some of the veterans would be, what sort of deals would make more sense in this type of rapid growth area? Would contracting deals at market value be a legitimate offer? I'm passing on deals because they seem so risky. Any help with this would be appreciated.
Look at the data.
Ignore the 70% Rule. Watch what SELLS in your market to investors. You now know what they are willing to pay. Let YOUR market tell YOU what works.
Redfin works in Austin, that is essentially MLS for wholesalers. Watch what is selling. Add it as a favorite if you know its a fixer, when it relists you get an email. You now get to see what the "ARV" the buyer predicted for it and then you'll get an email when it closes. This helps you study and understand your market. Also, when you get that title report I told you to pull from your last post you'll see ALL the properties selling for cash in Travis County, you can look them up and see what kind of deals they are, what they are selling for and to whom. Preparing to wholesale is all about KNOWING YOUR MARKET. Its the due diligence stage of the biz. Don't let anyone discourage you, this forum is fantastic for advice but most folks aren't in your market so you must take the time to know and learn the Austin market before making assumptions and ruling out what is possible.
Hot markets are great to wholesale in, that means you have hungry buyers.
@Tim G. Good insight. I agree that Redfin provides the level of detail you mention for wholesalers & investors. You also make a good point about listening to the market. Austin's housing trends have shifted every few months, over the past year, with the constant influx of new residents and pressure on inventory. Wholesalers who negotiate good off-market deals are valuable to local investors. If the spread is profitable, deals are snapped up by local and out-of-town investors. I've witnessed this first hand.
Redfin is the most fantastic resource. I feel bad for those stuck with zillow or the other ones.
Any lead that comes into my office is added as a favorite on redfin. We then get notifications of what happens to it. Nice way to track activity, other peoples deals and what the market is doing.
John, I'd be happy to look at buying some leads around or above the 70 ARV limit in Austin. Ping me!
Sent you a colleague request and a message.
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing