I was having conversation with some investors about what I do, and they show interest on some properties I mention I was looking at. Can I send them some info via e-mail on the suggested listing,price,comps,beds,bath, all but the address ,and if they are truly interested then put it under contract?
Everyone keeps saying find the buyers 1st…is this what you do?
You aren’t finding buyers first your building your buyer list. I know very similar but different.
The two easiest methods for building one is to put an ad on Craig’s list and an ad in the newspaper. Other than those two you need to be passing out business cards like there is no tomorrow. Call all of the ads in the newspaper and all of the bandit signs you see.
Now let’s look at the root of the real problem…
Why are you wholesaling…? I bet you mean assigning… Which is the most expensive form of financing… You should learn how to buy property with little or no money. At the very minimum Wholetail…
Michael, I know I’ve seen you post several times that wholesaling is the most expensive, can you explain. I was considering starting out wholesaling and would like to know why this is the most expensive form of rei. For someone starting out that has little money but good credit, what would you say is the best route (aside from birdogging).
Wholesaling is the most expensive because IMHO finding the deal is the hardest part of this game… Finding the money is a lot easier… Most investors who are new think the opposite so they find a deal and sell it to an investor for 10 cents on the dollar rather than make all of the money…
this isnt rocket science… You just need the right guidence and buckets of money will start knocking on your door…
For those just starting out with little money, if we should learn how to buy property with little or no money vs assigning, how do we hedge against unanticipated repairs, tenants not paying, etc?
My initial plan was to wholesale/assign to build a reserve fund prior to investing in deals for cash flow… is there a better way that I’m not seeing?
Thank you for your time.
Michael, you are saying wholesaling is not a good way to go… PERIOD. And I too do not understand how it is expensive.
I thought many investors claim that this should be an integral part of your business. I would think esp. so now the way the market is. There is little risk, and you are building up your cash.
When you whole sale a property to another investor quite often they are looking for the same if not a better deal than you would be willing to put your own money on the line for.
So if that is what most investors are looking for, and you were able to find a deal that has that type of spread, you would be better off doing the entire deal yourself and not whole selling it for 2 - 10K+.
Ultimately it is going to cost you the same amount of money to market to and get the really good deals that you whole sale, as it is to market and get the deals that you could and should flip yourself.
Sure whole selling is great if you can only handle say the one deal you are currently working, and you find a deal and you dont have the means to make it work, whole sale it.
And sure you can find investor/end buyers that are willing to purchase your properties at whole sale prices that dont have a large spread but I would suggest putting that list together before you start trying to find the properties.
Now I must say, if you have your marketing up and running full force then you may be better off whole selling properties, unless you can handle 5 - 20 properties a month and the head aches.
I think what is being said is that its going to cost about the same to bring a good deal in whether you whole sell the thing or flip it yourself, so if your starting out why not do the deal.
guys and gals I was on a vacation and didn’t see the question…
The reason I think wholesaling is the most expensive type of investing is because you leave so much on the table… Find a mentor who can lead you to the money and work the deal so you make all of the profit not just 10 percent…
Mentoring companies are dirt cheap… In fact when asked I always say… They are too expensive and not enough… Depending on if you utilize and implement what they tell you you do…
As for is you should ever wholesale… The answer is YES… As long as the number is 30k per deal or higher… Finding the deal is the hard part putting it together is easy… Assuming you have a coach