As you all are experiencing the market is always changing. I am seeing that wholesaling in my own "background’ is becoming more trouble then its worth. I am looking to spread my wings a little but am not sure how to show houses to buyers outside of my market. I am considering wholesaling in several other markets that I would not be able to drive to. I bought a virtual wholesaling course but it didn’t really address the issues that may arise having a seller show their own house to buyers (may want to cut you out of the deal). Is anyone wholesaling in a market outside of their own and what are some of the strategies you are using. Any information will help.
whats wrong with your back yard market?
I live in NYC and its becoming more and more difficult to wholesale because many people (represented by lawyers) want to work directly with the person purchasing the house and won’t sign assignment agreements. Considering moving to the suburbs and upstate NY, as well as NJ and CT. However, I wanted to get a feel for how it works if I wholesale in a market that is not within driving distance.
I do all my wholesaling on the internet. I get properties under contract by pictures and agents opinion as to the condition. I then post my property for sale on line and through investors networks. Never see the property, forms emailed to me, sign fax back. Never see my buyer. Short,simple,sweet.
It just takes good organizational skills. I wholesale in 3 markets outside my area. These are the steps:
- Research on the internet about good real estate market/wholesale potential areas;
- Look on Craigslist for that area and also send emails to investors clubs in that area - look for potential real estate agents and contractors to work with you - select a few;
- Take a trip! Go to that city and meet face to face with the selected agents and contractors. See in person what they are like - go with your gut feeling! Also have them take you around and show you sample of homes and areas to invest.
- Go home - start working long distance. You have the agent, the contractor - look on Craigslists, have your agent run MLS searches, search on websites. Do the same things you have done locally, but long distance, as far as looking for properties. Have your agent and contractor be your eyes - have them send you photos.
Go for it! I am a great believer on not keeping all your eggs in one basket or one city, in this case … :biggrin
Virtual wholesaling is absolutely the best way to wholesale. i highly recommend that you go to the market you’re wholesaling at least once and set up some contacts to help you out in case you need any type of help. For instance, some sellers won’t sign anything unless they actually do it in person. In that case , you can just get your contact to go take care of this for you for $50 or so.
How is virtual wholesaling better than wholesaling where you live? You just mentioned a scenario where it would certainly be better if you were actually there.
In such a case I would ask the seller what do they care who actually ends up buying the house, just as they shouldn’t care where the money is coming from to buy it or what the buyer plans to do with the house once he/she buys it. It doesn’t affect them in any way whatsoever once the deal is done. All they should care about is the house is sold and out of their hair. If you get anything other than an “OK” after that, then you’re not dealing with a motivated seller. This has very little to do with where you live.
Additionally, there are several other methods of wholesaling a deal other than assignment of contract.
You can expand your market. If you live in a small town of 250,000 people, and you want to do more deals, you need to go outside your market. Or, if you live in an inflated market like NYC, you might need to go outside your market to wholesale.
Does anyone know of a good course to do this? Or maybe a good course for the experienced wholesaler? I done at least 10 deals but I want to take my business to another level. Also would any pro here be willing to take me to the next level ? I would be happy to partner up on some deals , even in my backyard. Again , I done deals already so no need to babysit me as I know a good amount of the biz.
Look forward to hearing from you
Martin
I agree with NSU1997, if you are having trouble with sellers they are not motivated at all, I say don’t waste your time or energy on indivduals who want to waste your time. The one thing I have learned about this business is that if the seller is not motivated it’s not worth your time. I would take a different approach on how you qualify your leads, you can headoff this problem by qualifying all of your potential sellers. If they want to go through different channels then that means they really don’t want to sell their house, keep chugging along they always say your one deal away, don’t give up on your home area, there are plenty of people who are struggling to pay there mortgage get out and market to those people, you gotta do some dirty work to get going.
Martin,
This is known a “hijacking” a thread and it is considered rude. If you want to change the subject, you should start a new thread of your own.
Keith
Moderator
Martin,
This is known a “hijacking” a thread and it is considered rude. If you want to change the subject, you should start a new thread of your own.
Keith
Moderator
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My sincere apologies, don’t know what I was thinking.