Four property types that are great for wholesalers

There’s no question that the real estate market is changing. They say there are always opportunities. So, where are they now?

These four property types are becoming ripe for real estate wholesalers, and could offer the profit margins and volume investors need to keep up their cash flow in the year ahe

1. New Construction Condos
There has been a speculative building spree brewing in some hot cities for several years. It’s now apparent that is catching up with some builders who have mountains of inventory they’ve been unable to offload. Even despite offering upgrades or paying association dues for years. In many cases their lenders simply won’t allow them to reduce public asking prices. However, they may be bought off market in bulk at deep discounts. Developers want to cash out of projects and focus on their next move. If you can score deep enough discounts, you can have beautiful product, and still move them at a bargain price that is attractive to end buyers.

2. Multifamily Apartments
Many single family home investors have been trying to step up to apartments. Yet, many are still struggling with their funnels and finding the deals. By building relationships, and with better marketing wholesalers can serve up these deals on a platter. In some cases, whole buildings designed as condos could be ripe for reverse conversions for those seeking buy and hold deals for cash flow.

3. Rural Homes
There are disadvantages of going too rural. Smaller buyer pools is a good example. Yet, with prices so high in urban centers, and little house for the money, expect more buyers and landlords to be hunting for properties on the outer suburbs. There is less competition for now, and the cheap prices could produce big spreads.

4. Ultra Luxury Homes
A new home sales price record was just set for over $230M. Other listings could push that record to $500M and even $1B before long. Even though there may be some concerns over a new recession, the ultra wealthy are normally unfazed. They can lose a billion and still be doing very well. In fact, softness in other markets can drive them to invest more in brick and mortar assets.