Jesus Gabriel Mendez advises new wholesalers to avoid Texas, Florida, New York, and California due to heavy competition. Target non-metro areas instead of major cities, and focus on markets where average home prices are under $250,000, where sellers tend to be less market-savvy and more motivated.
Which is the worst state to do deals in? That's a great question. If you're asking this question, I'm going to assume you are a beginner, so I'm going to tell you all the markets to avoid when starting your wholesale journey. Off rip, I would go ahead and avoid all the top states. So we're talking about Texas, we're talking about Florida, we're talking about New York, we're talking about California. Now, I'm not saying you can't find success in these markets, but it's just going to be harder. And if you're hard-headed and you want to go into these states or any state in general, my recommendation is you stay away from metro cities. Metro cities are where the biggest wholesalers and the biggest investment companies are putting most of their marketing dollars so they can see a big return. For example, here in Dallas, I would not wholesale in Dallas even at the level that I'm in. I would go ahead and stick around Dallas, around all the metro cities, and go into those markets. And that's where I would spend my marketing dollars to see the highest return because there's less competition. Another tip is for you to stay under $250,000 of average sale price in that market. The reason for that is because the property values are smaller. There's going to be somebody that's not in tune with the real estate market as much as somebody that has a
