Wholesaling to whom?

Bird Dogs, Wholesaling
1

This might seem like a crazy question, but my experience lies more within the flipping segment, so bear with me.

I assume that most people that do this on a regular basis have established a pool of investment buyers to call on when an opportunity arrises. Either that, or I assume that you’re working with organizations that make the other half of the game their business - or a combination of both.

In any case, assuming that I’m correct at least to some degree, does anyone have any suggestions as to how to begin to establish these relationships?

I have no problem with the concept of doing short sales, etc. to acquire at least the option to buy these properties, but at this point I feel like unless I have a pool of potential buyers lined up in advance it would be time wasted.

All suggestions are appreciated.

2

Join a real estate investment club if there is one in your area. If not you can always advertise in the newspaper. I run an ad like this one every now and then: I must have gone crazy! I am selling houses at 70% of value! Call xxx-xxxx

Rick

3

Thanks Rick for the reply.

So, just out of curiousity, would you say that it’s generally harder for you to find properties or to find buyers? I understand that every market with be different, I’m honestly just curious about your experiences.

4

In my market, there are way more buyers than there are properties. It’s harder to find the deals.

5

I would agree it is harder to find properties than it is buyers, but good buyers have been FAR more valuable to me than good properties. The nice part is you can sell buyers like you sell houses, if you know what your doing

6

If I were to put a property under contract, and then call a company that buys homes on the cheap, is there a target range that I can expect them to be willing to pay?

Obviously they want it as cheap as possible, but is standard practice say 70% of ARV minus repairs? or 60% or what?

7

I would not try to sell them to other “companies” that are buying them on the cheap. That’s just a wholesaler selling to another wholesaler. Sure, you can do it, but at what margin?

I’d rather sell it to one-man operation who will rehab and retail the property…someone who knows a lot about houses but little about marketing. He will pay more than another wholesaler would, and, if the deal works out, become a long-term customer for you.