Is Phoenix, Arizona still a viable market for investors looking to wholesale homes?

Phoenix was one of the first major real estate markets in the US to really rebound. This meant that it attracted a large amount of investment dollars and investors from around the world. After becoming incredibly competitive, many began looking for other markets. Now many investors are wondering if this is a good time to return to Phoenix, if deals can be found, and if so, for how long?

Some wholesalers looking to return to Phoenix to sell homes have found that the market has changed a bit. Some report having difficulty finding viable opportunities to wholesale MLS properties. However, many experts and analysts predict that the best days to make money in the Phoenix real estate market are yet to come.

Home prices may have risen significantly in this region in recent years, but analysts estimate they will rise another 50-150% over the next 10 years.

A recent report from the California newspaper UT San Diego places Phoenix, AZ in the top 10 of the most appreciating American real estate markets as of August 2013, which means it is still alive and offers fantastic conditions for the sale of homes at the retail level. higher.

Perhaps most significantly, however, Phoenix is ​​classified by the CCIM Institute as a rising “secondary market” for global commercial real estate investors with greater pockets. This indicates more business and job growth on the way, which is exactly what is needed to drive real growth in the region.

At the same time, major hedge funds and giant private equity firms have announced that they are pulling out of chasing REOs as rentals and are instead offering their cash for smaller investors to borrow as equity capital. job. In addition to an increase in transactional lenders, this provides wholesalers with more than enough leverage to make a significant volume.

It is true that the price ranges may have changed, but this means little for wholesalers using cash, short-term financing or sticking to contract allocation.

The ability to find viable offers depends on the strategies that are implemented. There may not be as many foreclosures or REOs, and wholesaling MLS properties requires additional knowledge of how to make it work.

So if you’ve been considering changing houses in Phoenix, Arizona, go for it. Just be smart with your wholesaling marketing, be flexible in your prospecting tactics, and you’ll find a significant flow of business available.