Sourcing Properties as a buyer ex-wholesaler......

[Kelly Martinez]

I used to wholesale, on a bootstrap budget, did well mostly focused direct to seller on pre-foreclosures. Now that I'm jumping back into real-estate and I'm buying not wholesaling I thought well 'this is going to be easy street' I have funds a budget for marketing I don't have to spend hours skip tracing and cold calling (not that I'm opposed to it, I was pretty good at it). I want the BP communities opinion on networking for relationships directly with wholesalers (ones that have not lost their minds on valuation/rehab costs etc). I can still source directly on my own but I've thrown my info out there a few times already to supposed wholesalers only to be spammed with deals that are CRAZY. No meat on the bone and unrealistic ARV's/rehab costs.

When I wholesaled I was always honest with my buyers about how much I had the contract for because what I was selling it to them for was still more than reasonable and they were NEVER unhappy. Even made 25k on a wholesale contract and the buyer was happy as hell because it was still an awesome spread (unicorn deal). I have the expectation that I want to be treated as a buyer how I treated my buyers when I used to wholesale and I'm not really seeing that happen so far. So new to being an actual buyer, but not new to real estate looking for recommendations on establishing some of these relationships with some NO BS people who are honest and fair like I was when I was doing it. To supplement while I still focus on direct sellers.

[Allan Smith]

What you are referring to is exactly what I do. Relationships with wholesalers -- and other RE professionals though the wholesalers are the most difficult breed.

Yes they send out deals at ridiculous prices. Here's my estimation of the metrics. Out of 15 wholesalers, one will be really good, and another will have occasion deals. For the really good one, maybe 1 out of every 5 deals is worth buying. The occasional guy is more like one out of 10 or 15 prospects is a deal for me. Meanwhile, the other 13 wholesalers might have a deal that I want maybe 1 out of... 50? 75?

Bottom line, I probably look at 50+ wholesale deals to buy one. I've not found a wholesaler that has consistently brought deals where the numbers make sense, but I do have a couple I consider good.