What Price Range For Wholesaling (Austin)
Hi all,
I am a newbie to wholesaling, and this is my first post, I have been lurking for a while reading up on this and that....everybody is sharing some great knowledge here and I've gotta say this site is great!
I have read in various courses that wholesaling should target the lower middle income houses, but not "war zones". A couple of questions come to mind:
1) Now what exactly makes a war zone? Here in Austin there are not too many high crime gang infested areas.
2) In Austin prop values FMV are 50K -100K low income 100K -200 lower middle 200k-300k middle 300-500k upper middle. My question is should I be looking for 30k junkers in 100k FMV neighborhoods as my primary market? Or should I be looking in a different price range?
Any general advice is greatly appreciated, if it is Austin specific that would be great as well.
Thanks!
War Zones would be the gang infested, high crime areas. Maybe in Austin you're just lucky, and don't have many.
When wholesaling, the price of the property does matter, but not so much the price range. The trick is to leave enough in the deal for the prospective buyer to go in look at the deal and be assured that they can make what they need to to make it worth their while, regardless of the price range.
The investor will likely be looking at Acquisition, repair, and holding costs not to exceed 70 - 80% of the After Repaired Value to make it worth their while. This rule does not work for luxury homes. It is my understanding that you will need much larger margins when dealing in the luxury home market.
Good luck,
Jeff
I have a question for you sir, do you know of or can you refer a realtor in the Austin area who wants to deal with an investor? I am looking at REO homes in the $30-100K market fro wholesale/flip. I would appreciate any help you give. Thanks,