When the market is down you will have to understand up front that buying a property for wholesale real estate investing will take some understanding. You will not want to be forced to limit yourself to acquiring a house that you can live in. In which case, that means you buy a home and dwell in it until you turn it. In such a market you will really need to get ahead on the competition. You will not likely be able to sell it any higher than what the location can handle. This is why you need to tie it up at a huge discount to retain a fair profit if you are attempting this the traditional way.
In this case wholesalers will begin by looking into prices in the current areas. With the local real estate markets and the amount of motivated sellers, investors who are flipping real estate are doing very good. No matter what you decide to do, at the end of the day, you have to weigh your profits against the amount of work that came into play getting the house successfully turned. Thus smoother low risk techniques like real estate wholesaling are preferred.
Of course be sure to educate yourself about flipping houses and/or seek an experienced colleague before you decide on any new investment business and investment endeavors.
