Updated: Oct 26, 2022
When I talk to my students in the Astroflipping course, a question they’ll often ask is what they should be looking for in a market.
This is a really great question, especially for someone that’s new to wholesaling and new to real estate investing in general.
New wholesalers will sometimes believe that there’s a secret market out there just waiting for them, a magical land full of houses and properties to be bought.
And you’re right!
Well, to a point.
Guys, the market you’re looking for, in most cases is right in front of you.
Property Market 101 – Where to Find Properties
When I look at markets to purchase properties, I always make sure that there’s a population of at least 100,000 people.
But Jamil, how do I find a market with that many people?
One of the best software programs I’ve used is Privy. It gives you:
Access to real time MLS data
Automated deal finding algorithms
Runs comps and emails you those deals
A big plus for this program is their heat map, which essentially shows you all the fix and flip activity happening in that area.
That actually leads to the second thing I look for – investor activity.
The last thing you want to do is try buying properties in rural areas or in the middle of nowhere because no one is going to be buying out there.
Places that have investor activity are those that see other investors buying, selling, doing fix and flips, buying and holding, etc.
Another thing for me, and what I tell my students, is to look at the properties where you’re comfortable. For instance, if you live in South Florida, then stay in the market area of South Florida.
It’s a great area that happens to be growing and booming. There’s really no reason for you to go outside of that area.
Now that we’ve talked about where you should look, let’s talk about what not to look for.
Property Areas to Avoid
For the most part, any residential areas are great to look at, even those that are situated on a corner.
Typically, those particular homes tend to be avoided because of their proximity to a stop sign. Why?
Cause they’re considered high traffic accident areas. However, in our current market, those houses will still manage to see.
In all of my years of wholesaling, one of the most difficult properties to sell is a vacant lot.
These types of lots are usually in industrialized areas and can often require having a specialized commercial buyer.
That isn’t to say that these properties can’t be sold or bought; they can, but it’s far more difficult to do.
In these types of deals, the best thing you can do is speak with a commercial buyer.
Ask them what number they would give for the property or if they’ve already talked to the lot owner and gave them a number.
I talk more about it in the video below:
Guys, choosing a market to get started in is as simple as looking at your own metro city and going at it.
If you still need help or support, then come join the Astro community!
We have so many great people in the course that are both new and seasoned investors, who are supporting and advising their fellow students.
Come see what the excitement’s about and let’s go!