Hey guys, one of the things I have enjoyed doing here lately is giving you a glimpse of our epic Q & A coaching calls from Strategic Investor Insider Circle. I received great feedback and lots of requests for more lessons like the two I’ve done thus far – How Do You Approach Others Wholesalers about Co-Wholesaling? and What’s a Typical Wholesale Profit?
So today, I’ve got another fantastic question asked in one of our coaching calls. Jeffrey from the Bronx asks about knowing if you have the right market to wholesale:
“I live in the Bronx in New York City. Would this be a good market to try wholesale investing or should I try someplace else first? How would I determine which are the best markets?”
Great question! Well, if you want to know how we answered it, listen to this handy-dandy clip from the coaching call:[audio:http://mustknowinvesting.s3.amazonaws.com/Does%20Wholesaling%20Work%20in%20Your%20Market.mp3]
And because we’re feeling awesomely generous, here is the transcript for you to read along with the audio…
Jp: …First question here is from Jeffrey Bernstein in the Bronx. Jeffrey says, “I live in the Bronx in New York City. Would that be a good market to try to do wholesale investing or should I try someplace else first? How would I determine which are the best markets?”
Great question. What do you think, Patrick?
Patrick: Yeah. Very good question and Jp, why don’t you start us with this one and I’ll bring it home?
Jp: All right. First of all, I don’t have any idea what kind of market the Bronx is so I can’t give you any specific, customized advice, Jeffrey, and I’ll be surprised if Patrick can in terms of that specific area. But here’s what I can tell you…
My advice is you should always try it first in your local market and in most markets, wholesaling is viable. I’m not going to say all because I think there could be … In fact, I know there are some exceptions to the rule but the exceptions to the rule that I heard of have been especially rural areas (which is a hard word to say, by the way) or an area that’s very rural and there’s not a lot of activity going on.
My friend, Steve Cook, moved from Baltimore, Maryland to Baraboo, Wisconsin. It’s this small little town and hardly anything goes on there.
My two sisters and my whole family live in this tiny little town in Allendale, North Dakota. Those are areas where you can’t really do much in the way of wholesaling. There’s just not enough and there’s just not people buying. There’s not enough investors. I don’t think that’s going to be the case in the Bronx. My suspicion is it probably is a good market for you to give it a go.
Sometimes I just think everybody feels like the grass is greener on the other side and wants to do something remote in another market, it seems (with a few exceptions), but my philosophy is try it at home first and really try it. Don’t just dip your toe in – really make it happen.
One of the best litmus tests for a good market for wholesaling is are there other wholesalers? That’s not the [inaudible 00:02:19] I would use but if you go into Google and you search for we buy houses Bronx and sell house fast. In fact, why don’t you do that real quick, Patrick, if you’re in front of your computer? See what comes up.
Patrick: Yeah, and Jp, what you just hit on was ringing in my head. Seek out other wholesalers in your local market. I would think that there probably are some. I don’t personally know the Bronx market, but find the local real estate investment group, visit them, talk to, network, meet a lot of the other investors and just see who’s wholesaling property.
They’re going to be a great gauge to see if you want to call it a couple or a few or maybe more, and actually I would suggest, you can go to Google and search for “real estate wholesaler Bronx” and just see what pops up here and I’m looking right now. Wholesale real estate in Bronx… allwinnerspropertysolutions.com. That’s the second organic result that I just saw pop up. Jp, did you search, too?
Jp: I did a search for we buy houses Bronx and we’ve got webuyhousesbronxforcash.comand we’ve got webuyhousesbronxny.com.There’s a lot of national people that will show up, too, when you do a search like that, but you can usually see who the national guys are and avoid them and go for the ones that look like they have a local presence.
These guys may or may not be wholesalers but they are active investors with their finger on the pulse of the community and they’re potential buyers for you. If they’re in the business of real estate investing, they’re your potential buyers. Yes, I would say indisputably you can wholesale in the Bronx and win.
Here is a cool tip, too, that I actually learned from Justin Wilmont. If you go to LinkedIn, you can click on advanced and then on the left side of the screen it will allow you to type in “real estate wholesaler”. Then scroll down a little bit and then just put just a ZIP code or an area code. There will be results for your search on LinkedIn because a lot of times people will have their profiles there and, if they’re a wholesaler specifically, you can use the filter with those keywords and LinkedIn can be a great potential source for you there.
Do you have any advice for testing your market to see if it is viable for wholesaling? Anyone have more tricks up their sleeve? Has anyone had real estate investing success in rural or other challenging market? Please share below.
P.S. If you have been enjoying these Q&A coaching calls, take advantage of this special trial offer and get a taste of what it’s like to be an Insider!