As a wholesaler, you're likely focused on locking up fixer-uppers at 65-70% of the After Repair Value (ARV) minus rehab costs, then selling them at a 5-10% margin to local flippers. The challenge is that flippers represent only 2-5% of total real estate investors in any given area, meaning your buyer pool is small and your profit margins are tight.
Instead of catering solely to flippers, consider shifting your focus to cashflow investors, especially those on the West Coast in states like California, Washington, and Oregon, where cashflow opportunities are scarce. Cashflow investors make up 70-80% of the total real estate investor market, providing a much larger buyer pool. By securing deals at 85% of value—a much easier target—you can wholesale these properties to cashflow investors at 95% of value. This approach maintains your 10% margin but with significantly more deal flow and a broader base of potential buyers.
To further sweeten the deal for your cashflow investors, provide WTI’s Neighborhood Reports to give them confidence in the neighborhoods you're offering. This added transparency can help you close deals faster and at better prices.
Access the tool on wheretoinvest.io
Capital: Start with $50,000. Financing: Select Bank or Broker. Outcome: Choose “Cashflow”. Property Type: Choose “Single Family Residence.” State or Metro: Leave these fields blank to explore nationwide opportunities.
Click on any promising neighborhood
By expanding your focus to cashflow investors, you’ll find yourself with more deals, more buyers, and ultimately, greater success in the real estate investing world.
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