Purchasing From Wholesalers

[Sam Zes]

I'm just getting started in real estate investing.  I've been wanting to do it for the last 20 years, read hundreds of books and listened to hours of podcasts.  Now I'm in a financial position to make this happen.  I work a highly demanding full-time job so I don't have a lot of time to put into everything in the beginning.  My plan is to rapidly purchase rental properties and eventually replace my salary with passive income.  I've been to REIAs and have had numerous wholesalers approach me.  It seems like buying from wholesalers is the best situation for me because of my time constraints and they would probably beat me to any good deals anyway.  Is it a feasible plan to buy from wholesalers with the plan to rent the properties and still achieve cashflow?  Or do the wholesalers take all the profit out of the properties?  I realize there probably wouldn't be a lot of cashflow, but I'd be happy with a couple hundred dollars on my first deal.  I'd appreciate any advice.

[Hugo Alves]

Sam,

You determine their value. There are a ton a wholesalers, some add more onto the price than others. The key piece is to vet them like you would anything else. Once you find one or a few you like, give them your criteria, not the rental information but more based on the areas you're are looking at. If you know the area, know the market rents, then by quickly looking over the "deals" you will identify if it's really a "deal" or make a counter offer on the asking price.

With that said, buying it right is the MOST important thing in real estate. I spend most of my time searching for the deals myself, with assistance of a few agents, then i automate everything else going forward due to my lack of available time.

Wholesalers are a good resource. You have to sit back and decide which part of the equation you want to be most involved what you can are willing to automate.

Hope this helped