As a wholesaler, one of the most questions I get is how to not just find deals, but find good deals.
For those who are new to this type of real estate exit strategy, their initial reaction is to keep away from properties that are in, we’ll say, “less desirable” areas. They believe that the neighborhood they’re looking at spells a bad deal.
But that’s far from the truth.
I recently addressed this very question in a recent coaching call with one of my AstroFlipping members:
Why Distressed Properties are Good for Wholesalers
The majority of the deals we find and look for are properties that are in some type of distress. What does that mean?
A distressed property is usually easy to pinpoint visually – these are the homes that have overgrown lawns, been abandoned, broken windows or doors, etc. No doubt you’ve seen these types of properties, either as you’re driving or maybe you have a home like this in your own neighborhood.
We as wholesalers want to find these types of properties because there’s opportunity for potential.
The potential is what the property could be once renovations are made and once the property is brought up to retail standards, which often helps to boost the neighborhood property.
In turn, those less desirable become more desirable, for both new and current residents. This also helps raise the property values for the neighborhood itself, which benefits the current homeowners.
It’s important to state that, even if a deal looks good on paper or in theory, trust yourself if you don’t feel like it’s a good deal for you. There’s nothing wrong with stepping away from a deal if the numbers don’t work for you; this is where reaching out to your network to find someone else that can help is important.
If you’re just starting out and don’t have a network yet, come join us in the AstroFlipping Facebook group or join our growing community.