What type of criteria for homes do buyers want from wholesalers?

Question

I have read many of the articles and posts on BiggerPockets, which by the way has some great information.  I would like to thank everyone that contributes to BiggerPockets, alot of the information is very valuable to me, who is just starting out in wholesaling.

Because I am just starting out in wholesaling, I don't want to waste my time and I want to start this right by asking the professionals on this website.

Finding motivated sellers will not be the issue, but finding good quality properties that buyers are actually looking for will be my priority.  I will be focusing in Southwest Missouri until I am able to take this full time.

So I am asking if the buyers on this website would be willing to share exactly the type of properties they are looking for.  A criteria that a majority of the buyers are looking for.

I will be able to use your criteria to find the high quality properties you all are looking for and will be able to start marketing them.  This will help me not waste mine and your time.

Thank you in advance.

J Scott · Answer

Personally, I want the wholesaler to be able to give me a ballpark estimate of what the rehab would cost in order to get to the ARV he is providing.

In other words, if the wholesaler says that a property will resell for $150K, how much will it cost to get the property into the condition where it will resell for that amount.  Does the $150K ARV assume carpet and laminate counters?  Or does it assume hardwood and granite?  If the wholesaler is giving an ARV, he should know what type of rehab it will take to get to that ARV.

And that's the rehab number I'm looking for.

Personally, I don't expect a wholesaler to be able to tell me how much a rehab will cost with any accuracy.  So, they should just be conservative -- come up with an estimate and double it.  If the numbers still work based on double the estimate, then bring it to me.

And for me personally, a wholesaler should be able to figure out exactly what I rehab on my properties and exactly what I tend to spend (it's all on my website).  So, it's pretty frustrating when a wholesaler brings me a deal and the rehab estimate doesn't include replacing the cabinets (since it should be obvious that I do that in 95% of my rehabs).

If the wholesaler doesn't want to spend a couple hours getting familiar with my criteria and my business, he probably won't end up selling me a deal.  Sadly, most wholesalers aren't willing to put in the effort.

Brian Burke · Answer

I don't really need anything, because if the initial numbers check out, I'm going to have someone from my team go take a look at the property.  That said, if you sent pictures or a video, it wouldn't hurt.

Brian Burke · Answer

@J Scott is right, but I will add that all buyers from wholesalers will have one desire in common.  Profit.  If your deal is far enough below current value, you will have no problem selling it.  If the ratio of price to rents is favorable enough, you'll have no problem selling it.

The most common reason that I reject a deal from a wholesaler is that they overestimate the ARV, or underestimate the repairs.  In either event, it produces the same result...not enough margin.  No margin, no deal.  This is much more important to me than bedroom count, type of construction, etc.

J Scott · Answer

Completely agree with Brian above.

No video/pics necessary, but I'll take them if you have them.

Alex Antonuk · Answer

Thank you all for the great advice, you all have been very helpful.  One last question for the investors.  Which would be more helpful, or does it make a difference, once I find a property and have the estimated repair cost; would you prefer a video walk through the house or simply pictures of each room?

The technology so advanced with smart phones and iPads, I would think a video walk through would be most beneficial to you as investors because you would be able get the "feel" of the house and surrounding neighbors.  Any thoughts?

Brian Burke · Answer

@J Scott, I couldn't have said it better myself.  Absolutely correct.

Alex Antonuk · Answer

Great advice, Brian Burke.  One question is how detailed of a repair estimate to buyers look for from wholesalers?  I mean I would assume I would approximate the costs to meet or slightly exceed the surrounding neighborhood.  For example if majority is vinyl siding, ceramic tile, standard cabinets and laminate counter tops, VS wood siding or brick, marble or slate, custom cabinets, and granite counter tops.  Many of those decisions will be up to the house flipper, so what is your advice on how detailed of a repair cost to provide for the flipper.

Would the buyer want just a $/sq. ft. or would you like to see a detailed breakdown of each room with dimensions and current finishes and the suggestions from the wholesaler of repairs?

Andrew O. · Answer

Sure it's nice to get the volume of options, it just seems that with the immense number of guru trained wholesalers, there seems to be an equally immense number of close to retail "deals"(many of which can be found mls).

The best deals coming through my inbox are Wholesalers who buy at the courthouse steps, and these are getting low in number. I was just suggesting to Alex that if he really learns from successful wholesalers here on BP, he can bring some great deals to his buyers.

Unfortunately I have not been in the game too long here in the states so I don't have a good wholesaler base, and I can't think signing up on anymore landing pages is going to generate great deals for me, just my short term experiences talking here.

Dave M. · Answer

Perhaps, Andrew O. but what about if someone isn't sure if they have a deal? I'd rather they bring it to me so I can pass than never know, thoughts?

Andrew O. · Answer

All I desire is a wholesaler to actually bring me a good deal, seems like they are few and far between. If you want to move a property quickly (and you do) polish your negotiating and people skills, provide a solution for a distressed seller, then if the deal is good it will quickly sell itself.

What type of criteria for homes do buyers want from wholesalers?

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