Wholesale deal out of state?


As you can probably tell by my question, I am new to the wholesale business. I had a few questions that I would love answered if possible. They are as follows:

  1. I live in CA and was wondering if I could wholesale properties in other states? Not sure how this would work since the whole transaction would be done over the internet, phone and fax. I guess I would want to hear from someone who has done this or thought about this.

  2. Anyone know if wholesaling houses in CA is a big market currently? Again, sorry for such a general question.

  3. Due to the economy, are most people wholesaling short sales and reo’s because equity is such a problem?

I think I have taken the first step by learning this business. I purchased Eric Medemar’s Ultimate Wholesaling system and am learning some of the tricks to wholesaling. I am going to work on building a buyers list. Do you think finding a mentor in CA would be a good move on my part to start this business? I am not new to real estate but don’t know anything about wholesaling. I think I could probably find someone I could work for who can help me with my deals for a 50/50 split or something like that. Would you recommend that or just dive in alone and make some mistakes and learn. :banghead

I thank you in advance for your knowledge and comments.

One of the big differences in this biz in the past ten years or so is the advent of the internet. We can now do a deal cross country as readily as we can do a deal in our own neighborhood. No need to limit yourself. I don’t do many wholesale deals, but I have done numerous lease options and assignments in states other than my own.

Thank you for your input AJ. Could you give me an example of how you assigned a deal out of state? Would most sellers be willing to work with a wholesaler to sell if they are out of state? For example, I am in California and I want to put Nevada properties under contract and assign the contract to investors in CA. Would there be a conflict of some sort and would you, as a NV resident, agree to such an offer from a wholesaler? That question is more of a what if scenario.

Anyone have a response to my #2 & #3 question above?

Thank you