Just curious! I gave wholesaling a shot a few years back and I failed miserably! I was able to put 4 houses under contract. 2 were short sales which I got approved and 2 were straight wholesale deals. I wasn’t able to find any investors to find the deals.
Soon after the bubble burst and I lost the deals alone with some money.
Anyway, real estate is still shaky, however, I still see signs all over town offering to buy houses, I assume they are wholesalers, who’s buying the houses from them?
I’d buy from a wholesaler if they offered a deal that was exactly what I wanted.
I’ve yet to see any useful offerings from a wholesaler, but if you would find out what the investors are looking for, and find that specific type of property in the price range they want to spend, then they will buy from you.
As far as I can tell, most wholesalers do not understand that “cheap” is not the only criteria. They also seem to have a different definition of “cheap” than I do.
I work as a wholesaler for a small franchise and 75% of our business is wholesaling to other investors. Not every deal we get is a “deal”, but most of the time we’re getting property at .55 cents on the dollar and wholesaling it for .60-.70. Our buyers list is filled with wannabes as well as actual cash guys. We’ll call the cash guys as soon as we get a deal in an area they like, and if it’s a good deal we usually get it done within 2 weeks. We spend a lot of money on marketing and go through a lot of leads to find deals, so a lot of the investors that buy from us are guys that either don’t have the time, energy, or money to find enough deals on their own.
The other 25% are rehabs we do ourselves and wholetailing (buying as is at our price and then simply putting on MLS without doing anywork to the property, and usually before we close on it).
Tatertot is so right. “real” wholesalers will have legitimate deals. I cant tell you how many times i’ve been brought a deal where the wholesaler bought it right but there is zero margin for his fee to me. Wholesaling still works and I’ve done countless wholesale deals. Bottom line is simple…
Do your homework…buy RIGHT…and sell to me and you get paid.
Please please move to Appleton, WI so you can wholesale me some LEGITIMATE DEALS.
these are normally subject 2 investors, who then owner finance the property to ‘bruised’ or poor credit buyers, or new jobbers, or folks that can’t document income for now…they buy on contract.
investors can offer something that banks cannot: Owner financing.
you have to remember that even in the sluggish ‘traditional’ housing market there are those that cannot get traditional financing for whatever reason. enter owner financing.
Yeah you still see the signs around the city "We pay cash for your home.) etc…
These signs are not going anywhere. They will be here until the end of time. You ask, who is buying these homes?.. CASH BUYERS are buying these homes. The wholesaler himself is not buying it.
A smart wholesaler has a list of buyers that has cash on deck.
How do if find solid wholesale buyers and what are they looking for in this market? If cheap is not the only criteria, what are the most important factors that you(wholesale buyer) look for?
You market to them through online directories like Craigslist. Once you have them calling you (and this will be very soon after you post your ad), Collect all their details so when you have a slamming deal, you can notify your cash buyers. When you have an interested buyer, get a non refundable deposit from them to tie up the property, and get another check (the big one) at closing.
And there always will be. I use to live in a town of about 50K people population. Deals getting done. People need homes. Just got to know how to find the cash to close on these things. Good luck.