Hey guess, I'm a 23 year old currently living in the state of Washington and I'm currently learning the wholesaling strategy of real estate and striving to complete my first wholesale deal. I'm trying to find local cities that have a lot of investor activity but getting kind of lost as of right now. Do any of you have any recommendations on how I should go about learning a new market?
@Earl EJ Jones what's wrong with doing it right where you are in Lynnwood?
I want to wholesale in Lynnwood because i am very familiar with the area but it seems like right now when i do market research in the area and trying to identify retail prices from the low prices R.E.Is are paying for good deals all i see is expesive retail prices. An example of this is say i see a house that was 150k retial but i checked the sales history and it sold for 50k last month or within 30 days, i bet that might have been a investor deal but in Lynnwood the media price for a house retail here is like 350k, so right now im trying to identify a deals that investors are buying that way i'll know what they're paying for a good deal and how i should come at them. Would it be best just to stay in a location and direct all my wholesaling efforts toward the place i know best or would it be better to go somewhere where there is a little more room, Maybe im overthinking it a little. Thanks for your reply.
@Earl EJ Jones I think you may be getting mixed up between active, pending and sold comparables. When you are looking to determine After Repair Value (i.e. how much the property would be worth once it's fixed up), you should focus on the sold comparables (i.e. deals have closed and money has changed hands). Those are the best indicators of actual value since they've already closed. For the most part you can ignore Active & Pending listings although they do provide indicators of where Sellers think they could potentially sell their house at. A lot depends on the neighborhood but I would suggest using Zillow or RedFin to help you find comps if you don't know yet what you're doing. Hope it helps!
Yeah i'll eventually get it, guess you can say right now i am in my learning curve stage.
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