I was told from a “reputable source” that wholesaling is harder now because so many people are upside down on their mortgages these days. I’m not going to let that stop me but I thought that I would ask anyway.
I new at this but I know that I can’t listen to everything I hear.
BTW I’m in MD (working PG County and Charles County) if that makes any difference.
Wholesaling is harder if your talking to the wrong prospects all the time. If your making offers on bank owned properties if may be easier to get offers accepted. If your doing direct mail campaigns to free and clear homes more of your offers may get accepted. If your tracking down ugly vacant houses and doing short sales if their in foreclosure more of your offers will get accepted. The key is to fire off 100 offers a month. You’ll get some action. The wholesalers that make the most money fire off the most offers.
Aaron’s absolutely right.
It’s really a numbers game my friend.
It’s also a location game just like pitching in baseball.
If you focus on the right place, especially where there is little to no competition- it’s like being at an auction and being the only bidder.
that’s happen to me quite a few times in real estate and it’s a great position to be in.
One of the ways to find these ‘secret deals’ is driving good mid ranged priced homes, tracking down the sellers of vacant and messed up houses and contacting them.
these are the deals you won’t see on an REO list, on the MLS or foreclosure list at the moment.
It’ll be your profitable little secret.
all the best. Let me know how I can help you
Dennis :beer
Best lead generators in 2010
Probates
Frustrated landlords who have owned their properties for more then 10 years
owners who own junkers
short sales
REO’s
I love how frustrated landlords who bought their properties during the housing bubble and at the top want to try and sell me their over leveraged undervalued mistake. They always tell me without fail that their properties have new this and new that and this was replaced and that was replaced. I don’t know why in the hell do they think I as an investor care if the property is dolled up. They think they can’t fetch what they sunk into it . WRONG!!
I agree with zpandergt we only forgot one other source.
Jim Rotowski… He brings me leads of people that are 60-90 days late on there mortgage! These people are 60-90 days late on there payments and still 90-120 days away from getting a NOD. If you are going to be good at the wholesale business you need to know Short Sales and everything else. Then again I also have not done a Wholesale in YEARS. Why do it when I know all the Transaction funders and 200 HML’s. Sure it may cost a few points yet why let others make the profit?
I don’t believe it’s harder to wholesale now…the key ingredients of wholesaling just need to be strictly adhered to…know your markets inside and out, know EXACTLY what your buyers want, monitor the market/MLS like a hawk and make offers that make sense…there may be some variations to the business model, i.e. speed may be a much more important piece of the puzzle, but if you’re a market expert with regards to what your buyers want and what your market has, you should be fine…
I’m a rehabber and have begun wholesaling because I keep finding deals and my business model is very strict with regards to how many rehab projects I will do @ one time. Banks are still eager to get rid of properties on their books, especially ones which have been taken over by the feds…there are some behind the scenes reasoning for their willingness to unload their troubled assets for almost nothing and, in my estimation, the next 4-6 months are going to be awesome…but again, keeping your business prepared to adapt is key…hope it helps…
Mike
Wholesaling is alive and well. Matter of fact I’m starting to see landlords with cash looking for super deals. These buyers are slowly but surely getting back into the market cause they didnt get burned back in 06-07. We wholesaled two duplexes last wed. and we just accepted an offer from an O-O on another deal. All three were HUD homes.
Make offers and don’t let others dictate how you run your business. Stay positive, focused, and good things will happen,
Nate-WI
I’ve seen media stories of investors coming in an snatching up REO properties. The investors are getting their money from somewhere in order to buy these bargains. I believe isn’t necessarily harder, its just that some of the rules have changed. Certain lead generators no longer hold the equity like they did 5 years ago. I believe it is more important then ever to have a solid and ever growing list of cash buyers.
Thank you all for your responses. They are very helpful.
Wholesaling like all other real estate business models is still flourishing and part of a fully capable market. It is all about how you desire to set up your business model. If you are making multiple offers everyone month and only getting a few responses it might not have anything to do with the market at all. Sometimes the hardest thing to do is analyze ourselves and our own plans to point what our weaknesses or strengths might be. Don’t forget that sometimes it will take a little bit of time before you see a trend in your marketing plans. Hang in there and keep your head up!
Myles Weisman
Wholesaling has become a little more complicated these days due to increased regulation by the government.
In florida you have to have specific forms in order to do wholesale deals.
Also, if you are picking up properties without equity, you will have to get approval from the banks to sell them.
All that aside, it depends on who you market to. If you can send letters to only properties that have MUCHO equity, then you will be better off.
Keep in mind that several of the LARGEST wholesaling companies are now either out of business or close to it.
Wholesaling is a profitable business. A lot of investors want to venture in this kind of business but don’t know how or where to start. Especially now that the economy isn’t favorable. But as they say no guts no glory. Better try our link this kind of business.
I can’t tell you all how many sellers have been calling me with properties with high mortgage balances and acting like they are doing me a favor by talking to me!! :rolleyes Then I have some that get offended when I ask them does the property have a mortgage balance and what it is. The number one question I ask first after I get all their personal information is “HOW LONG HAVE THEY OWNED THEIR PROPERTY”. If they say between a year and five years, I’m already :rolleyes because I know it is going to be 8 out of 10 an over leveraged property. This is also a reason why I’m focusing more on lower end properties, because landlords normally buy these types of properties for cash and tend to pay them off within a short period of time.
Summit’s right - he’s a great source of information and knowledge! Business can boom if you know how to focus it, the market conditions change, but creativity and flexibility is key 