hi there,
wholesaling sounds fun but i suppose there will be issues. Wonder if old timers, experienced investor care to share how they solve the following problems ?
1)This is likely to happen for a new investor whois building client lists, dont you think ? For example, what if you cant find buyers? How often do you run into case ?
2)What if you find buyers but do not qualify loans ?
3)Does wholesaling works in Calif. ?
In response to your questions…
1)This is likely to happen for a new investor whois building client lists, dont you think ? For example, what if you cant find buyers? How often do you run into case ?
If you buy right, this shouldn’t be a problem. You can call all the “we buy houses” ads and should be able to find a buyer. Let’s just say you can’t, then have it rehabbed yourself or give up your earnest money. It’s good to go into a deal with more than one exit strategy.
2)What if you find buyers but do not qualify loans ?
Develop a relationship with a couple of hard money lenders and be able to get your buyer’s financing if they don’t have it.
3)Does wholesaling works in Calif. ?
Can’t speak to this one specifically, but I would think it would.
That’s an easy one, love. If you are wholesaling properties, try placing an ad in your local paper for a property that you have control of like this (or something to this affect):
“Handyman Special. Motivated Seller. Flexible Terms. 30K (or whatever number it really is) Below Appraisal. Investors Welcome. Call (insert your name) at (xxx) xxx-xxxx anytime.”
…and watch them FLOCK to you! Just make certain that you get EVERYONE’s information, such as their name, address, phone number, etc. as you are building a list. Not only will you get your home sold fast, but you will have a nice list to work with for your next house you control. If your local newspaper lists their ads on their website, my advice is to pay the extra cost for it, as you will also land some out-of-state investors as well. Money well spent there.
When building your list, make sure to ask all the right questions to qualify your buyers/investors such as: Are they rehabbers or fellow wholesalers (only sell to rehabbers), how fast can they close, are they cash buyers (cash buyers are the best to work with. You don’t have to deal with all the hassals and delays with them getting financed), how experienced are they, have they ever dealt with wholesalers, would they consider splitting the profits (larger cut for you instead of an assignment fee), do they have references, what areas do they prefer, what kind of return are they looking for, what is their price range, etc. This list will also provide you with MANY backups in case your first investor backs out. When working with a new investor/buyer, you should get half of your assignment fee up front to help ensure they don’t back out - at least until you have built a solid relationship with them, then you can get it at close if they prefer. But if you have to wait that long, then your assignment fee is larger, right? 
Just make sure you cover yourself with plenty of paperwork to cover yourself.
Hope that helps. Good Luck!
Robert
You guys are the man…You guys give me great hopes 
How long have you been doing this? was it hard first time trying out ? Was it a smooth ride for you guys ?
I appreciate your advices …thanks so much!!!
Man? Um, don’t you mean men? lol 
One thing I should mention about the “We Buy Houses” ads. Seems like most of them are wholesalers anyway. Actually, if you want to sort out the rehabbers from the wholesalers, you can change the word “investors” in the ad to “rehabbers” and see what happens. Play with it a little. My method at least allows them to come to you, rather than have you chase them down. In this way, you don’t come off as being desperate to get buyers. You are more in control with an in-bound call. And control is what you want, right? You have something THEY want, not the reverse.
It’s always hard the first time out. As with anything, the more you do, the better and more confident you become. Don’t worry about making mistakes, just so long as you get out there and do it. You can learn along the way. Tell your sellers you are new. They will help you. So will buyers. Just make absolutely certain none of them take advantage of you. “Newbyness” can work to your advantage regarding negotiating price. Most sellers don’t have nearly the amount of information and training about real estate that you already possess. So you can use that to your advantage.
R
goldenknight,
you got me there
wholesaling works anywhere in The U.S whether the market is good or bad. Here in California as you may know is over inflated and now going into a down market prices are starting to decrease and will continue for a few more years.
Your goal in wholesaling is to not own the property long enough for the deappreciation leg to hit.
“IF” you buy the property right there is no reason why you shouldnt h ave no buyers.
place ads, call on we buy houses lkike someone suggested here.
when you wholesale you wholesale to investors which should have their financing in tack, no need for you to get finacing for them
unless you are retailing it to a retail buyer then in that case you would find financing for them.