I am a Brand new investor based in Queens, NYC. Just wondering, Is it possible to get any wholesale deal in NYC ? Or I have to change my market out of NYC ? Need some advice from experienced and senior wholesale investor.
Yes just find a property at a great discount and flip the contract. There was a member here that did a wholesale deal in Queens a couple weeks ago.
Hey Utpal -
While wholesaling in NY is possible, it’s certainly more difficult than most other markets in the US (IMO) for a number of reasons.
1. With such a large buyer pool in the five boroughs, many owners won’t even consider selling their property off market. They would much rather run a full marketing process through a broker to ensure that their property garners the highest sales price possible.
2. The number of competitors seeking deals is much more than any other market. At any given point there are thousands of real estate brokers making calls directly to owners, many of which have specific territories that they stick to, which allows them to get extremely intimate with all of the owners in their respective territory, thus making it very likely that the owner is going to use that broker if and when they decide to sell.
3. Given that the price points in the five boroughs are much higher than most locations, sellers want to have confidence in your ability to purchase the property before providing a purchase and sale contract. Without a good track record, verifiable POF, or letters from banks referencing your credit-worthiness, it would be difficult to convince the seller that you’re capable of purchasing their property. Simply put, most sellers don’t want to waste their time or money.
4. In my experience, most sellers are not willing to provide an assignment clause in a contract, especially when the number of zero’s on the purchase price is on the large side. They don’t like the idea of potentially leaving money on the table. Even a markup of 1% by the contract vendee could mean a loss of $150,000 to the contract vendor.
Please note that despite my points above wholesaling in NYC is DEFINITELY possible and I have witnessed many people do it. Just recently I heard of a trade that netted the wholesaler a fee of $4,000,000. With profits of that size a wholesaler won’t survive many trades in NY. As soon as you’re labeled a habitual contract flipper in the market, you’ll find it very difficult to have a P&S contract offered to you.
My recommendation would be to try your hand at wholesaling in Queens, Brooklyn, the Bronx or Staten Island where prices are lower and sales are much more frequent. Best of luck in your endeavors.
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