If you are looking to start a career in real estate wholesaling, the best states for that may not be what you expect. When it comes to the best states to wholesale real estate, you might think of places like California or Boston, but there are many more opportunities where less people are looking. In this blog post, we will discuss wholesaling in general and the best states to wholesale real estate. We’ll also provide tips on becoming successful as a wholesaler!
The hot housing market is great for wholesalers, who can get a property quickly and sell it off to another investor. The best states and cities are different depending on what you’re looking for- but if your goal is big profits with little work in between transactions, these areas might be the perfect fit!
Top 4 Best States to Wholesale Real Estate
There are many good areas to invest around the country. Your individual goals and capabilities as an investor also play a huge role in where you should buy. With that said, here are some of the best states to wholesale real estate based on some important metrics. Always be sure to check your farm cities demographics including things like population growth, job growth, crime, etc.
The Texas economy is thriving, and there are no signs of slowing down the growth. Many of the major cities in Texas including Houston, Dallas, Austin etc have experienced big increases in flips and profitability over the recent years. This makes it much easier for real estate wholesalers to find success with flipping houses and contracts because investors are very confident in the profit potential.
Next up is Michigan. Michigan is another great location for wholesaling. With affordable housing prices in many metropolitan cities and competitive rental rates, Michigan is a great market for investor activity.
Florida is a market similar to Michigan with a lot of opportunities. Fix and flip houses are abundant in Florida. Between the older population and the difficult weather a long the coasts, rehab properties can return a good profit due to the extensive work that’s needed.
Arizona is a thriving market with many growing cities. The population has also been growing over the years.
What to Look for – Best Market Conditions for Wholesaling Houses
The market for housing changes every day. There are many factors that determine whether or not a state is good for wholesaling. Here are some of our most important considerations:
#1: Rising property prices
This is always a good starting point. While there are definitely cities that are excellent wholesaling options that do NOT have ever increasaing property values, this is still an important metric to consider.
#2: Growing population
If a state’s population is growing quickly as a whole, this means there will be a greater need for housing in the very future. However, with this metric, it’s again very important to look at individual cities as well. Some cities are much more desirable than others, so make sure you’re looking closely at where this growth is happening.
#3: Employment situation
Better employment rates indicate more economic stability and likely more suitable buyers. With more buyers who are capable of paying retail pricing, this also typically drives the price up homes.
#4: Rental rates and occupancy
Rentals are another good indicator of potential buyer and seller interest. If rents in an area are very high, it may drive more buyers into the retail market to avoid paying the high rents. High occupancy rates also indicate a shortage of rental units. With fewer units available, it’s only natural that potential buyers will have more of an urge to buy.
Can you wholesale real estate in other states?
The short answer is yes. With that said, it’s very important to understand the laws in any state you’re doing business in. Each state’s laws may differ on your contract language and buying/selling processes. If you’re new to wholesaling, be sure to consult an attorney.
In Conclusion, The Best States to Wholesale Real Estate Are…
Whether you’re looking for a career change or just love the idea of buying properties to make money, wholesaling is an excellent way to start. In this post we discussed the best states to wholesale real estate, what wholesalers do and why it’s such an attractive option in today’s hot housing market. If you’re ever interested in purchasing your own property, check out our guide about how to approach a hard money lender.
As we discussed, the best states to wholesale real estate are: