Southern California Wholesaling

Bird Dogs, Wholesaling
1

I am a new RE investor in southern California, looking to wholesale deals to build up some cash. I have three questions.

  1. Is anyone familiar with SoCal, specifically Orange, Los Angeles, San Bernardino and Riverside counties? I would like to know what is a “normal, reasonable, acceptable, etc.” assignment fee? It sounds like 5k is pretty standard nationwide, but wondering if it is commonly higher in this higher-priced market.

  2. How do you local investors analyze your deals? Are you looking for a specific % return on your investment or are you looking for a specific dollar amount of profit? Are you looking to buy properties at a specific % of ARV? I’m trying to feel out this market in order to find the best properties/deals to bring the other investors out there.

  3. I live in Orange county. Should I farm the areas near where I live for convenience/market familiarity, or focus on the Inland Empire areas where homes are more affordable in order to achieve more potential end users for the Rehabbers/Landlords, thereby increasing my buyers list?

Thank you all for your input, it is a tremendous learning tool for us newbies.

2

You probably want to attend a local REIA meeting or two since your questions are very specific to your location.

Chris

3

Thanks, I have already scheduled a few meetings with local REIA’s to find some specific local market info.

Thanks for the suggestion!

4

the best way to analyze a deal is to know exactly what your buyers are looking for and then find it.

Once you find it then you can determine your assignment fee by these 2 variables.

#1 Motivation of seller-if you can find a deal and it’s with a very motivated seller then you can get a price much lower than normal. If you have a deal that is far below a normal wholesale price than in many cases you can ask for more money

#2 Motivation of buyer- If you have a retail buyer, or a buyer who wants to buy soon, they are often willing to pay far more for a contract then another wholesaler.

the perfect wholesaling storm is a very motivated seller, mixed with a very motivated buyer.

I hope this helps a bit.

5

Yes, suggestions and input always help. Thanks for your time!