I have a question for all the experienced wholesalers that are doing deals. I have read conflicting advice from the gurus that wholesale property as to the best way to do a wholesale deal. Do you find a property, put in under contract and then advertise for a buyer/investor or do you have a buyer’s list and find properties to put under contract that fit your buyer’s criteria? In the book I’m reading now, the guru says to work the deal backwards and get the property under contract and then advertise for buyers. If the deal is a good deal, the buyers will come. Another guru says that you absolutely must have a solid list of buyers/investors before even putting a property under contract. I’m just wondering what is working for everyone and any suggestions or advice you may have. I have compiled quite a good list in the last couple of weeks of possible property leads for wholesaling, but I’m afraid to start marketing to these folks and/or contacting them because I have yet to find a buyer/investor in the areas I am wholesaling.
Thanks in advance for any and all help.
Shelley~
Shelley
Look at it this way. If YOU already have your buyers list and know what each buyer is looking for. YOU will not be waisting your time on properties that YOU will not be able to wholesale. YOU also will not be waisting the buyers time. So next time he/she will not hesitate to look and see what YOU have.
Bruce
Just my 2 cents worth here:
Your first consideration is what type of wholesaler are you?
Do you just want the real quick flip that lets other wholesaler find the investor/rehabber/handymen etc?
Or are you the one to seek these individuals out?
The difference is time efforts and paydays of course.
In my neck of the woods (city)
One could easily loose a deal by NOT having it under contract.
Maybe your area wholesalers/rehabbers etc. are the moral and noble type but here you will get snaked for a few thousand dollars.
PUT IT UNDER CONTRACT.
If your buyers object it’s their greed talking.
As long as you agreement if fully assignable
I have only had one buyer (wholesaler) object.
Coincidentally he was the only buyer to offer me a paltry $1000. for each home I found.
I safely make 3-15k per deal with out killing off my market profit margin.
Knowing typical scenarios helps here and will go a long way to keep buyers interested in what you got.
Yes there may be occasions where that’s $1000 is better than nothing.
But if you grow and massage your list, segregate buyer types you can market in stages for increased profitability.
I work my properties in sales stages against my buyers list, marketing to the most likely or performers first and on down the line.
I always leave room for their profit. Sometimes this takes a few grand from my pocket but (huge point here) by keeping the buyers margin profitable they will buy and buy and buy from you, why because it made sense and plenty of dollars…
To find these buyers since you say buyers are slim in your area hit the investor clubs, home depots type place, home builder ass., any place (not bars) that contractor frequent will work.
My rule is: If it’s not on a contract it isn’t mine to sell, period!
If you are a Bird Dog-er you are just pointing out potential deals.
If you are a Wholesaler You get the property under contract and then assign the contract to the buyer.
;D
Bruce
consider your service. i believe in the 6th degrees of separation philosophy for my service. my seller typically gives me a call and wants to get rid of a property that he has had no other way of getting rid of, i typically know people he doesnt. i try to get it under contract first, then market it. i have a small buyers list myself right now, but i place ads on investor websites. i get calls and emails for people interested in my ads and i assign the contracts. through my ads i tend to have someone else to add to my buyers list. i havent tried posting ads at hardware stores yet, although i will try it to see what happens. honestly, some deals are harder to find buyers for like my 2-for-1 in saginaw, but nonetheless, i try. good weasel clauses keep you from being stuck with the property if you cant find a buyer.
I appologize for making my comment way more involved than need be.
Indy said it best and simply.
There I go comlicating things… :-X