Can you wholesale in smaller towns?

Question

I am new to re and trying to figure out the best path to get started.  I am in a rural area but there are a few bigger towns in the 20-50k range a half hour a way or so. 
There are a lot of low income families, alot of foreclosures and bankruptcies going on, etc.

I was just wondering if wholesaling works in a environment like this or would it be better to start with something else.

Seth Williams · Answer

About 90% of the deals I've wholesaled in my career have been in rural areas (many of them out in the middle of nowhere, actually). If you can acquire a property for a low enough price, YOU WILL be able to find a buyer - it's just a matter of offering enough free real estate equity.

Of course, there are always exceptions (like with "junk" properties - which tend to sell with much more difficulty), but generally speaking, every property has a buyer - it's a matter of selling it for the right price (and whether or not you're able to do it).

Justin McClelland · Answer

You can most definitely wholesale in a rural town. The main question you have to ask; are there active buyers in the area? If so, find out what they're buying. Also, take a look at how long properties priced competitively are taking to sell. Reassuring answers to these questions will tell that if you have a property to offer, you'll be in a better position to resell it.

Nathan Paisley · Answer

Here's one way to look at it...

What if you we're offered a JOB in a neighboring state. You had the ability with incentives and bonuses to make $100k a year, would you pickup and move? You can wholesale anything, anywhere. It just makes it harder with less inventory, but if it was easy everyone would be doing it!

Bill Gulley · Answer

Jackie,

Wow, that's an investor attitude, just buy the Pizza Celler, but I think you meant the pizza....LOL

LOL! How old do you think I am anyway??? Nevermind...my ticker is just fine!

Rockaway is an easy and fast ride, might just head on down to Eureka Springs, head back up 13 around the lake to 160 and just make a big loop of it!
My cruiser doesn't go in a pickup, it goes on the trailer, now my Transalp dual sport could go in the truck....LOL

Should have done this as a PM, now for a real estate related statement:

Scott, I'd urge you not to fall into the slumlord mentality. If you want to serve lower income housing needs I'd suggest you look toward your local public housing authority and section 8 properties, stay with clean, safe and maintained properties.  :)

Jackie Pyle · Answer

Your Welcome Scott.  If you have any questions please feel free to pm me.  We have lots of experience in small markets.

@ Bill G.  And Bill if you are brave enough to bike down here I'll buy the Pizza Cellar!  And then we will load your bike up in the pickup truck and cart you back to Springfield if you haven't had a heart attack from the hills on the way down, that is!  Lol!

Scott S. · Answer

Thanks Jackie!  Yes I am listening to Bill also.  He has a ton of experience.  This is an awesome place with alot of great people.  I wish I wold have found it a few years ago.

Bill Gulley · Answer

LOL, thank you Jackie, I'll ride my bike down when it gets warm and take you to the Pizza Celler for that one! LOL

You're right about a multi-prong approach.  You need to be flexible in a small market, understand the basics, installment transactions, options, portfolio financing available and the combined loan to values allowed as you maight carry some back, if the local landlord isn't interested you need to look to others, partner with contractors for repairs, you just need to work a little harder to make up for what might be lacking.

Jackie Pyle · Answer

Hi Scott,  Jackie Pyle from the Branson Missouri area here.  You came to the right place!  If you see Bill Gulley  posting on your question you can bet he has a great answer and I would seriously consider what he says.

We invest in a small towns and do pretty well with them.  Time on market is a little longer but quality for $ is better.  It's always nice to be able to sell something to folks that will hold up.  As for the market get yourself a good realtor and have them do a little research for you.  You need to know that there is a buyer for your homes first.  Wholesaling sounds great but in a small market you have to take a multi-pronged approach.  I know there is a lot of info on here but be sure to look at this thread;  The Truth About Wholesaling

http://www.biggerpockets.com/forums/93/topics/58383-the-truth-about-wholesaling-

Scott S. · Answer

Thanks @Mike Nelson.  I will check it out today!

Mike Nelson · Answer

Scott S. Check out my blog in my signature. I do 90% of my deals virtually and I teach for FREE with my videos. Hope this helps man keep in touch.

Can you wholesale in smaller towns?

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