okay, im just getting started in the rei field. Looking in Atlanta, Georgia for potential flips under 100k. Can’t seem to find anything worth a profit. I’ve been skeptical of wholsalers/ bird doggers. Should I be? Do wholesalers have good deals worth looking at? If so, where would I go about finding wholesalers in GA?
Any input would be greatly appreciated. Thanks in advance.
ATLNEWBIE
You can find wholesalers by going to your local REIA group, by reading the newspaper (handyman specials) and by signing up for them from some of the larger investment companies online (Financial Help Services/Larry Goins comes to mind here in the NC/SC area).
Why are you skeptical of wholesalers? Is it because they intend to make a profit from you? As for birddogs/scouts, they find “potential” deals only. It’s up to you as the investor to decide if they can be a deal.
Do wholesalers have good deals worth looking at?
That depends on what a good deal is to you, and that will change based off your REI strategy. If you’re wanting to get something for 65-75% of ARV, then a good wholesaler will have those available. BUT, a good wholesaler’s properties move FAST and it’s still up to you, as the investor, to verify ALL the numbers.
Also, there a different levels of “wholesale” as well. Example, I offer three levels. One, completely “As Is” wholesale. You buy, you fix, you sell. Two, major repairs completed, PP&C ready (Patch, Paint, Carpet). Three, finished, ready to rent or rented. Each level is a different price structure. You’re not going to get a rehabbed and rented house for 70% of value, but at 85-90% FMV, it still works for the buy/hold landlord that is wanting small cashflow now in exchange for appreciation.
Raj
Wholesale IS the way to start just make sure your know your contracts and laws to make sure you are getting what you think your getting.
okay, Campbell.
First, he wasn’t asking IF he should be a wholesaler or not, but rather is it a good idea to buy from a wholesaler.
Second, wholesaling is NOT the way to start, contrary to popular opinion (or at least the gurus’ speech when they’re trying to sell a course to you).
The majority of really good, professional wholesalers that i know did NOT start out by wholesaling to other investors. They started by buying a few deals and learning the business enough to make really good deals that other investors wanted.
To be a good wholesaler, you have to a) know the market well b) you have to have a good network of referrals, both buyer and seller c) you have to be able to consistently find deals that other investors can’t d) you have to find those deals at significantly lower prices than other investors can e) you have to be able to move RE quickly (have attorneys/title companies, appraisers/agents, etc, etc. lined up). In short, you have to know your stuff!
How many newbies can effectively do all that? Maybe that’s why so many potentials never do a deal. They’re told “be a wholesaler” and that’s one of the toughest paths in REI.
Raj
What path would you suggest Raj? Just curious?
Sorry if that sounds confrontational it’s not intended to be.
No problem, Red! But is the question what path DID you choose or is it what path WOULD you choose if I were he? 
As to the latter question, it’s hard to say because I don’t know what type of investing atlnewbie is planning on doing (buy/hold, rehab, etc). Different strokes for different folks and all.
As to what path I chose, I started by buying the “diamonds in the rough” properties, PP&C (patch, paint, carpet) stuff straight off the ol’ MLS through a REALTOR™ (a buyer’s agent, I might add). Did I buy at 60-70% ARV? Rarely! However, because of the low fixup costs, I lessened my chances for cost-overrun. Soon, I learned that there was a special niche in the REO market, trouble properties.
Trouble properties were those foreclosures that had very little wrong with them but still sit on the market because of some preceived “problem” with it by other investors. A couple of examples: One, a house with only one well for three homes and the neighbor giving everybody a hard time about having to pay for water because that was “his well” (well was on the subject property, btw). Two, house sitting below the steep driveway and rain water had washed deep ruts into the drive. Both properties were bought at 50% of value and with less than $2K needed in repairs minus the “problem.”
As I gained experience, confidence, knowledge and fame (or at least, known in the area ;D), the deals came easier and better. From there, I branched in various other REI related fields, including wholesaling.
Raj
Meaning which one would you recommend that someone start with?
Again, different strokes and all!
It’s hard to give a blanket, “this works best” because there are so many different ways to get into REI.
I’ve trained several people how to invest while they birddogged for me, one of which has now far surpassed me in the investing world (but hey, I’m only marginly motivated anyway :))
If you can find an investor that a) is willing to teach you properly and b) you’re willing and able to work and/or supply the funds for their time, then birddogging/mentorship might work for you.
You may like the idea of buy/hold and prefer the long-term benefits of appreciation and tax write-offs more than quick profit. Of course, you may like the quick profits that come from rehabbing/retailing.
If you have access to a large pool of funds, you may like the idea of being a hard-money lender or a note buyer as opposed to an actual property buyer.
I know that that’s not the answer that you were really looking for, but each person’s goals are different and the REI method they choose should reflect that goal.
Raj
Thanks Raj. Now if we can just get someone to sticky this to the top of the thread… Hmmm wonder who we’d have to bribe to get them to do that 
thanks for the reply Raj… I was leaning towards flipping instantly, for I don’t know too much about landlording and it would seem to be a hassle.
my question is: Does my RE agent get involved in the transation between the wholesaler and I? And if she does, to what extent? Does she get commision on that transaction?
Thanks
ATLNEWBIE
my question is: Does my RE agent get involved in the transation between the wholesaler and I? And if she does, to what extent? Does she get commision on that transaction?
In the majority of cases, a true wholesaler is NOT going to be using a RE agent to sale his properties. So unless you want your RE agent involved in the deal, there will not be an agent involved. If you decide you do, then it would be between you and your agent to what extent that they are involved and how the agent is paid for their services. I can assure you that the wholesaler is NOT going to be paying a commission from the purchase price, though.
Raj
THANK YOU RAJ, AS ALWAYS YOU ARE AN ASSET TO THIS SITE.
ATLNEWBIE