What to do first? Find Buyers or sellers?

[Brian Watkins]

I'm just getting started in the "wholesaling houses" business. I have been reading conflicting information on what my first step should be. I've read that I should start with the end result and contact as many buyers as possible to find out exactly what it is that they are looking for before going out and getting contracts with sellers. On the other hand, I've read that I should get deals on contract first before contacting any buyers. I'm definitely confused as I do not want to get properties on contract without knowing if the deals are desirable for buyers. Any help would be appreciated! Thanks!!

[Bill Gulley]

Great thing about BP, you'll get different answers and then you gotta figure out who's right.....

Okay, go get a place under contract, just any house, then I guess you have your weasel period for due diligence, then you start looking for buyers, they are all over the place. But, none of those buyers wants that house, you keep making excuses to get in the property trying to show it to anyone you can drage over there. A day left on your weasel clause, seller knows you've been dragging different people in there, wonders what the heck, how many partners have to inspect that place or how many inspections does he need to do?

well, no one wants the house. You call up and say deals off, I'm using my weasel clause to get out of this one.

Seller starts asking questions, how did the inspections turn out? Did any lender have it appraised? Well, it comes out you never got an appraisal (because you weren't ever going to buy the place) and you don't have inspection reports either. Then it all comes out....

So, the seller says, oh, you were just jerking me around, had me take my property off the market, go under contract and you just took people through there to see if they'd buy from you. You didn't act in good faith, I have damages from holding this property longer while you jacked me around and I lost another buyer, who has now bought another place. I'll be seeing you in court hot shot!

However, if you had talked to real buyers, found out what they wanted, the price range, the locations, the age, the style they like and picked thier brain you'd know what to look for. You would also know that none of the buyers were interested in that other house you are about to loose your shirt on.

A hustler buys apples and stands on the street corner to sell them in hopes he sells them, he could be eating apples. A business man knows his market, has buyers and then drop ships the apples from the seller to the buyer. Never touches the product.

Find your buyers, locate what they want and don't spin your wheels with stuff you may not sell. Then you just call them, send them by, if they like it, then show it, one out of three will usually buy, could well be the first one you call. No monkey ads, no fakey signs, no dragging just anyone through the properties, no more long weasel periods for time looking for buyers, no more ticked off sellers holding thier properties off the market while you go beat the bushes.

Ahhhh, I suggest you find buyers first, then the properties. :)