Wholesaling in Nor Cal

Bird Dogs, Wholesaling
1

Questions for all you seasoned vets, and even the newly trained folk. My parents bought a course on wholesaling they didnt use, so I took a look at it. Some decent info, but most was very vague.

Anyways, I tried applying some concepts. I live in Northern California, speciically in San Jose. One of the tactics was to use realtors to gain access to the MLS, and send out offers from there. Here is my question/problem. This is an extremely competitive area, and everyone and there aunt is a licensed agent. It seems most of the bay area has slowed down except San Jose. The realtors have all seen me as basically a waste of time because they have so much business, and they know nobody will sell their property for 30% below ARV around here. One realtor said that if there were deals like that here, he would buy them before any investor can.

I am just starting to think that the market I am in is too high priced, and the use of realtors is unrealistic here for that purpose. Everyone here, even disgruntled landlords, know what they can get for there properties. Another reason the realtor thing wont work here is I can’t pay them the same comission as if they were selling a home. If I am offering someone 30% below ARV, there is no way they are going to pay a realtor commission out of their pocket. (Commision on properties here would be around 30-50K. Thats a conservative number)

It seems everyone involved with construction, investing, or anything to do with houses here is a licensed Realtor and represents themselves, so why would they waste time on me. After all, they do view me as competition.

Am I missing something, or should I just wait until I leave here in about another year to pursue this?

Sorry for the long post.

Any help would be appreciated.

Also, what training would you all recommend?

Thanks
Luke

2

Luke,

In the future, if you are wanting to change topics, start your own thread…don’t hijack those belonging to others…hijacking is considered rude in the Discussion Forums.

Thanx,

Keith
Moderator

3

You want to look for pre-foreclosures. You need to get them before they go to foreclosure. Once they go to foreclosure most banks require the property to be listed on the market and then any discount is usually gone. You might find a 10% discount if you’re lucky.

With the market slowing, it’s going to get harder for those in pre-foreclosure to sell quickly. It’s going to easier to buy at a discount. The difficutly will be finding people that are in pre-foreclosure and have equity in their home. I don’t think banks will be eager to do a short sale until the market slows down even more.

4

I , too live in Nor Calif ( San Ramon- Contra Costa) We tried. We thought the samething… So, We decided to buy outside of Calif…The prices are SO much Cheaper!!!We bought couple of houses for 60,000each and the house is worth 108,000 and built 2004. You cant find that here!! I have possitive cash flow every month. I will buy more out of state, but, Im keeping my home in Calif… You, need lots of money here in Cailf. to invest.