Is wholesaling $200k plus properties more profitable?

Question

I currently wholesale hear in Atlanta but focus mainly on the properties that are under $100k.  Are there bigger profit margins in properties at a higher price range and are buyers even considering properties at that level?

Jeffrey K. · Answer

Are you doing a lot of deals in the 100k range?  If you can make money doing what you are doing they keep with it.  If you try to target another market you need a whole new set of customers and clients (expensive).  If you want to work with expensive houses become a realtor and sell to owners.

Justin S. · Answer

In my market, anything below $100K is a volume game.  The #1 wholesaler here moves about 1000 per year but only marks up his deals $900-$1500 each.  Most of these go to buy and holders, because the flip margins are not there.

Steve L. · Answer

In my experience a lot fewer investors buy properties above median price range for the area.  For properties over 200k in Atlanta I would assume most landlords are out, so you are looking at buy-sell types only, who typically count on a bigger margin than landlords.

Definitely money to be made in that market.  You just have to really focus on what the buy-sell guys are looking for in that type of inventory.

Brian P. · Answer

Jeffery

Who cares what your current buyer base says, your still serving them. You want to expand your opportunities, add the next notch you won't regret it, your not giving anything up and a few of your current buyers won't care, if the numbers are good, you will see them taking a shot because they are only being asked to consider a little more and the chance to make more.

Plus many of the new buyers you find to serve would have never done a deal with you with your old limits. Don't even think about it just do it, there is no risk unless the extra $25k is to scary a price for you and will give you bad dreams plus all the extra worry about what to do with the additional income.

Jeffery Bigsby · Answer

After speaking with a few of my buyers, most of them stay in the sub $100k range anyway for a number of different reasons so I will stay there for now, at least until someone asks me to find them a deal in that price range.

Brian P. · Answer

Jeffery

I would advise you differently. I suggest to keep doing what your doing but add the $100-$125k homes to your effort. Just keep moving up a notch every now and then and expand your market each time your ready.

Jeffery Bigsby · Answer

Thanks Will, I will ask around to see if any of them will be interested.

Jeffery Bigsby · Answer

Wow 1,000 houses is impressive.  Hopefully with all the new marketing and systems I'm putting into place I can do a large volume as well.  I'm more of a base hit wholesaler anyway, I'm not trying to David Ortiz all of my deals lol.  Thanks for the advice guys I'll stick with the below 100k but keep my eye open for anything about that looks good.

Is wholesaling $200k plus properties more profitable?

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