The market is changing and as it does it is important to look for additional opportunities. If you have been wholesaling by finding properties in foreclosure and flipping them to buyers interested in rehabbing and resaling you may have noticed that more and more people are bidding on the same properties which is driving the selling prices higher and the profit margins lower. For three or four years no one has wanted to buy property that was going down in price and the deals were abundant. Now everyone wants to get in on the market because prices are going up. So, what to do? Try focusing on new contruction. There are fabulous profits in buying vacant lots in nice subdivisions, building a new home and selling to a retail buyer. The reason being the land does not usually rise in price as fast as homes do in an improving enconomy, not does the cost of material and labor to build homes. Because of this, the profit margin between the land value and the building cost and the retail market value of the finished home is usually quite large and continues to get larger as the economy improves and home values go up. Profits of hundreds of thousands can be made and builders know this. So, as a wholesaler, contact and sell vacant lots to builders. Call every builder in your area and let them know you can find vacant lots for a great price and find out what their criterior is. Then search out and find lots from motivated sellers and make offers that work for your builder investors. Many vacant lot owners have been sitting a long time on a piece of property and need to sell and they can't rent a vacant lot. It is property tax money out every year with no return; that can be motivation to sell.
The market is changing and as it does it is important to look for additional opportunities. If you have been wholesaling by finding properties in foreclosure and flipping them to buyers interested in rehabbing and resaling you may have noticed that more and more people are bidding on the same properties which is driving the selling prices higher and the profit margins lower. For three or four years no one has wanted to buy property that was going down in price and the deals were abundant. Now everyone wants to get in on the market because prices are going up. So, what to do? Try focusing on new contruction. There are fabulous profits in buying vacant lots in nice subdivisions, building a new home and selling to a retail buyer. The reason being the land does not usually rise in price as fast as homes do in an improving enconomy, not does the cost of material and labor to build homes. Because of this, the profit margin between the land value and the building cost and the retail market value of the finished home is usually quite large and continues to get larger as the economy improves and home values go up. Profits of hundreds of thousands can be made and builders know this. So, as a wholesaler, contact and sell vacant lots to builders. Call every builder in your area and let them know you can find vacant lots for a great price and find out what their criterior is. Then search out and find lots from motivated sellers and make offers that work for your builder investors. Many vacant lot owners have been sitting a long time on a piece of property and need to sell and they can't rent a vacant lot. It is property tax money out every year with no return; that can be motivation to sell.