wholesale deal example CTWhen people are first starting in this business, they seem to be slightly confused with what areas they should be focusing on.  Now, you know that I teach the Single Family Triad™ (1. Wholesaling 2. Rehabbing and Selling 3. Rentals), but for the sake of time, I want to focus this article on where to focus when you are wholesaling houses.

For some reason, people always seem to want to focus their efforts in areas that they like or where they would live.  This is a big ‘no no’ because that usually isn’t where the deals are.

Remember, we are looking for motivated sellers

Where Can Investors Find Motivated Sellers?

This means that we want to focus on where there would be a concentration of motivated sellers.  Do you think there are plenty of motivated sellers in high end areas where ‘well off’ people live?  It’s possible, but I like to live in the world of EXTREMELY PROBABLE.  There are no guarantees of motivation in certain areas, but we can increase our odds of finding these sellers by laser targeting where we look.

My rule of thumb is ‘first time homebuyer’ areas and ‘down’.  Now, what do I mean by ‘down’?

I mean ALL the way down.  You will go into blue collar areas, lower end rental areas, and even some inner city areas.

These are the areas with all of the distressed homes AND distressed sellers. So, forget the nice areas…Save those for when you’re shopping for YOUR house after you do enough deals!

Likely Motivated Buyers For Wholesale Deals?

In the most probable areas there are basically 2 different types of people you’ll be wholesaling houses to:

  • Rehabbers/Flippers
  • Landlords

wholesale rehab deal example CTWhen you lock up a deal in a ‘first time homebuyer’ area, you’ll probably sell to a rehabber who will flip it for a nice lump sum profit.  Some will keep them as rentals, but this market is so ripe for those big rehabber profits, that it will be mostly flippers buying from you.

The other main people are landlords.  For some reason, people overlook these powerhouse cash buyers. They have plenty of cash and they are always looking to add more cash flowing properties to their portfolio.

Different landlords will prefer different real estate property areas, but I can assure you that there are landlords in all of the areas I’ve described above.  In fact, most of the houses in the extremely low end areas are landlord owned.  This is a huge opportunity for wholesalers.

Another nice thing about some landlords is that some of them are lazy about finding new deals and LOVE when wholesalers call them with discounted deals that they didn’t have to go out and look for.  Some of them are more passive investors, so this is where you come in and help them out with consistent good deals.

Related Blog: How to Flip Houses From Scratch

Wholesalers Are Problem Solvers & Deal Makers

Again, as wholesalers, you’re solving multiple problems:

1.  Your motivated seller needs out of their house and you’re there to make it fast and easy for them

2.  Your cash buyers are dying for a new ‘off market’ deal and you’re there to bring it to them

3.  Your bank account needs more cash in it and you’re able to fill it with these wholesale profits


wholesale deal example COIt’s a win/win/win….Seriously!  It’s such a beautiful business model.  When I first started, I wondered why everyone wouldn’t jump into real estate…

So, I hope you’re clear on where you need to start focusing more of your efforts to make these dynamite wholesale profits…

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