Where are the best US cities for wholesaling houses in 2016?

Many real estate investors are looking for confirmation that they are in the right markets, or they are searching to expand their wholesaling businesses. So what appear to be the top cities for wholesaling houses this year? What factors make a spectacular market for flipping houses fast, and for sweet profit margins?

Four worth watching…

San Diego, CA

Fortune has ranked San Diego, California as one of the top three real estate markets for 2016. This is based on booming demand, with 60% more home searches than the average national market. San Diego has been hot and healthy for a while, but an even bigger boom in demand from Asian buyers over the next year, and its affordability compared to other major Californian cities could certainly pack on profit margins for investors in the months ahead.

New York, NY

Data from Property Shark shows an insatiable appetite for New York property. Big players are splurging billions on prime property in Manhattan, Brooklyn, and even Queens and the Bronx. They appear to think nothing of forking out tens, or even a hundred million on a property that recently sold for a fraction of the price. If investors can lock down contracts here, they could definitely be in the green.

Seattle, WA

Seattle has been pegged as one of the best US cities for property price appreciation in 2016. This ranges from modest 6%+ increases by November 2016, to well into the double digits by more bullish analysts. Tremendous interest in Seattle commercial property, and ranking as one of the top markets for foreign investors this year, the fundamentals look set to grow and support broad increases in home values.

Naples, FL

Naples, Florida is forecast to see property prices grow by as much as 40% over the next few years. That makes it a great choice for those looking to transition into a new market that they can keep working for a while, and that ought to have legs for years, ensuring even mediocre purchases will ultimately be profitable.

Measuring Markets

There are many more markets expected to perform well over the next 12 months. Fortune and Realtor.com have ranked markets by online search interest, while Trulia has taken a more in depth approach; looking at concentrations of millennials, jobs, and affordability. These are all important factors to look at for both short and long term performance potential.

What will you flip this year?

Authored by Best Transaction Funding BestTransactionFunding.com is the leading source of transactional funding and hard money loans for real estate wholesalers in the US, where 100% financing, and saying “Yes” is what we love doing all day long.

Where are the wholesale real estate deals to be found in 2016?

As the US economy and housing market continues to improve many real estate investors are wondering where they are going to find good deals to buy over the next 12 months. The National Association of Realtors says we are finally returning to a ‘normal’ market after over a decade. According to NAR that includes very few foreclosures and short sales in the marketplace. So where should value seeking real estate investors be searching for new properties to buy?

1. Real Estate Wholesalers

This might seem quirky, especially if you are a wholesaler yourself, but don’t discount this source just yet. As hard money and rehab lenders ease up and offer high LTV loans it’s easier than ever to flip house deals from wholesalers. Many also have invested heavily in dominating local auctions, marketing to motivated sellers, bank distress sales, and have negotiated incredibly low priced deals. Others attract many leads which aren’t in their immediate area and are happy to refer them. This can create a lot of efficiency for investors.

2. Aging, Long Time Owners

Between recent equity appreciation and the new rising interest rate environment this is the ideal time for many aging real estate owners to sell. Those that are already in retirement, and have owned their properties for a long time may not want the hassle of managing any more, and probably have a sizable amount of equity. Those without any heirs of their own may be happy to let properties go at a discount to good people that share their values.

3. Your Landlord

There are a large number of real estate investors who are also still renters. If this includes you then don’t overlook asking your landlord if they are ready to sell. If you don’t and they list it with a Realtor you’ll be kicking yourself.

4. The MLS

Many real estate investors snub their noses at the idea of flipping houses on the MLS. However, a look at what others are accomplishing by doing my change your mind. If you can make $50k in a few days by picking up ripe deals this way, why not?

5. Expired Listings

Even though many properties have been selling incredibly fast, others have been rotting online for so long that Realtors are losing their listings. Sometimes this is because they were too aggressively priced. In other cases it is they were poorly marketed, or the agents just failed miserably at responding to leads. These can be highly motivated sellers eager to meet a real buyer.

6. Inherited Property

It is important to be sensitive in this niche, but many heirs to real estate are eagerly looking for a cash buyer that can move fast and help them liquidate estates. If you haven’t already consider adding this niche to your portfolio in 2016.

 

Authored by Best Transaction Funding BestTransactionFunding.com is the leading source of transactional funding and hard money loans for real estate wholesalers in the US, where 100% financing, and saying “Yes” is what we love doing all day long.