What is best demographic for wholesaling?

Wholesaler · Amarillo, TX · Member since 2008 · 369 posts · 75 votes

What demographic have you had the most success in wholesaling?

Do you find more success when trying to wholesale in neighborhoods that have the "Average House?"
If the average house in your town is 3 bdrm, 1.5 bth, 2 car gar, at $150,000 then would neigborhoods that fit that criteria be the best place to target?

Or, are low income neighborhoods?
$50,000 or less.

What about areas that are mostly rental properties?

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Andrew Massaro
Flipper/Rehabber · Tampa, FL · Member since 2008 · 403 posts · 109 votes
17y
You want to focus on properties that people (your buyers) can pay cash for. That's generally low income areas, but not war zones.
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Curt DavisBusiness Member
Flipper/Rehabber · Memphis, TN · Member since 2008 · 5k+ posts · 2k+ votes
17y
Chris,

Your clients will appreciate it more if you are putting them into good areas. If you are going to focus on the lower quality homes then your end investor will attract lower quality renters and will have more problems. Seasoned investors will be willing to go for lower end areas but if you have newer investors who are looking for a good experiance, than put them in better homes.

p.s. low income areas is another name for war zones, in case anyone was wondering. Andrew, take notes.
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Andrew Massaro
Flipper/Rehabber · Tampa, FL · Member since 2008 · 403 posts · 109 votes
17y

OMG!!! Curt lit me up...
Uh, not really. There are plenty of areas where low income people live, that are NOT war zones, Curt. War zones are areas where you may get shot. Some low income areas are like this, sure. But some are merely poor, but not necessarily very dangerous.

Chris,
Your buyers dictate the property you get under contract. Find out what areas of town they like, and at what price point, and then go out and bring it to them.
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Will BarnardPro Member
Moderator
Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
17y
Call it what you want, low income and war zone are about the same to me.
Any rental unit (sfr) that gets $500 per month in rent can not possibly be in a good area, and thus low income=bad neighborhood=higher crime=danger zone=war zone

It is all the same in my book, but just my personal opinion.
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Stephani Davis
Real Estate Investor · St. Petersburg, FL · Member since 2008 · 190 posts · 91 votes
17y
I prefer the hood.

I've been working in the 30k and under range for the last few months, and am finding new buyers all the time.

There's less competition on the garbage properties, and the banks seem to be more eager to get these pieces of crap off of their books. I am going to town.

It's all good in the hood... :)
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Chris T.
OP
Wholesaler · Amarillo, TX · Member since 2008 · 369 posts · 75 votes
17y
Yeah I like "crappers" too!
I agree with Andrew, there are areas were people are out selling crack on the streets or where you'll find needles in the house, but there are more "low income" neighborhoods that are safe then neighborhoods that are dangerous.
I don't live in Detroit!
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Andrew Massaro
Flipper/Rehabber · Tampa, FL · Member since 2008 · 403 posts · 109 votes
17y
This thread is cracking me up...
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Will BarnardPro Member
Moderator
Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
17y
A quote from NWA,
The boys in the hood are always hard, come talk your trash, we'll pull your card,
Aint nothin in life but to be legit, don't quote me boy cause I aint said ****!
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Andrew Massaro
Flipper/Rehabber · Tampa, FL · Member since 2008 · 403 posts · 109 votes
17y
Eazy E... RIP.
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Stephani Davis
Real Estate Investor · St. Petersburg, FL · Member since 2008 · 190 posts · 91 votes
17y
Word.
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Nick J.
Residential Real Estate Broker · Payson, AZ · Member since 2009 · 3k+ posts · 1k+ votes
17y
you guys/gals are too funny! :mrgreen:

I actually started singing that song in my head Will

Anyways, I thought I might bring the topic back to earth :lol:

Chris, I target the neighborhoods in which I know my buyers are looking for. There is a smaller town down the road from Phx called Apache Junction where it is believed that they actually inbreed there, and no single person living in the city limits isn't on speed/meth.................not somewhere you wanting to be wife hunting you know what I mean? :roll:

anyways I don't touch that part b/c I have no buyers, I don't market or target there.

Your target market should be where you have buyers, simple

Ice Ice Baby, Ice Ice Baby
All right stop, Collaborate and listen
Ice is back with my brand new invention
Something grabs a hold of me tightly flow
like a harpoon daily and nightly
Will it ever stop? Yo -- I don't know
Turn off the lights and I'll glow
To the extreme I rock a mic like a vandal
Light up a stage and wax a chump like a candle
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Andrew Massaro
Flipper/Rehabber · Tampa, FL · Member since 2008 · 403 posts · 109 votes
17y
While I was out, I made sure to pour some beer on the curb. You know, for my fallen homies...
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Chris T.
OP
Wholesaler · Amarillo, TX · Member since 2008 · 369 posts · 75 votes
17y
%%&%$$()_)()&*&^$^$^%*^(&(*)**)
Too Short
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Curt DavisBusiness Member
Flipper/Rehabber · Memphis, TN · Member since 2008 · 5k+ posts · 2k+ votes
17y
Andrew, you are a trip!!! I am also pouring beer all over the curb!!! and I will even up you one and empty out my ash try right by the beer.
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Will BarnardPro Member
Moderator
Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
17y
Nick,

I can't believe you are singing Vanilla Ice!
Definately not in the same league as Easy!
At any rate, this is a crack up.

By the way Andrew and Curt, I believe it to be a sin to waste beer on the floor, so I will just drink the rest of mine.
SALUTE!
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Matt Rosen
Lender · Honolulu, HI · Member since 2008 · 166 posts · 46 votes
17y
I had to chime in.

"You know, I'd started thinkin.... either they dont know, dont show, or dont care bout whats goin' on in the hood man"

-Ice Cube Boyz n da hood 19naughty1
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Nick J.
Residential Real Estate Broker · Payson, AZ · Member since 2009 · 3k+ posts · 1k+ votes
17y
Originally posted by nationwidepi:
Nick,

I can't believe you are singing Vanilla Ice!
Definately not in the same league as Easy!
At any rate, this is a crack up.

Whatcha talking about, I always thought Iceman was a pretty hardcore gangsta, this video proves it http://www.youtube.com/watch?v=1BTJ_n9Oqs0&feature=related
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Will BarnardPro Member
Moderator
Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
17y
Jim Carey is shuch a card. That was hilarious!
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Will BarnardPro Member
Moderator
Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
17y
Now that we have had our fun, we should probably get back on topic before we have to sit in the corner.
and the best demographic for wholesaling is . . . .
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Andrew Massaro
Flipper/Rehabber · Tampa, FL · Member since 2008 · 403 posts · 109 votes
17y
By the way Andrew and Curt, I believe it to be a sin to waste beer on the floor, so I will just drink the rest of mine.
SALUTE!

Wasting beer is a sin... but so is gettin' a cap busted in your a$$. I have to give props to the souljas...

Sorry, nationwide...
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Ryan Webber
Wholesaler · Amarillo, TX · Member since 2008 · 1k+ posts · 659 votes
17y
Wow.

Getting back to the topic at hand. Lower end, but not war zones, are where you want to focus your wholesaling efforts. Typically lower end areas are older neighborhoods, meaning they have a much higher chance of having equity. You will also find a much higher percentage of motivated sellers in lower end areas. These areas also bring much better returns on rentals.

Now the "hood" is a relative term. I do 80% of my business in what many upper end investors would call the hood, but what I call the hood are the war zones. War zones have very little if any resell value. The only people who will rent a property in a war zone are either people who grew up in that area or people who are strung out. Either one of those is bad news.

I don't buy properties in war zones, but I do make a very good income buying properties in lower end areas.
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Andrew Massaro
Flipper/Rehabber · Tampa, FL · Member since 2008 · 403 posts · 109 votes
17y
All this talk of the hood reminds me of my days bangin' with the East Side Crips...

East Side for life.
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Will BarnardPro Member
Moderator
Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
17y
West Side!
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Chris T.
OP
Wholesaler · Amarillo, TX · Member since 2008 · 369 posts · 75 votes
17y
I think Jim Carrey was a better Vanilla Ice then Vanilla Ice!

That was some good feedback R-Cube aka Ryan!

I don't think we have too many war zones.....maybe North Heights and the NW 2nd area off of Adams, across from Wildhorse Lake.

I guess I won't target the Woodlands just yet!
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Jon Frame
Investor · Lehigh Valley, PA · Member since 2008 · 97 posts · 38 votes
17y
Hey Andrew,

Just pour the beer on the chalk outline of the body in front of the property before your buyer gets there, it should dissolve it nicely, then it would have went to good use.

Anyway, I agree 1000% with you, not all war zones but let them think that and we can disagree all the way to the bank. Most of my deals have been under 50k with a 3-5k wholesale fee.

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