Kennesaw, GA · Member since 2015 · 9 posts · 1 vote
Hello All,
I'm currently getting started in wholesaling and looking to build my network of rehabers, landlords and fellow wholesalers for upcoming deals. After researching a few forums it seems that wholesalers are getting a bad reputation based on the quality of deals being presented. I was taught to approach each deal as if I would be doing the rehab myself always looking maximizing the profits when analyzing so I don't think of myself falling into that category. Lets connect and figure out how we can help each other.
On another note, I would eventually like to move into rehabbing and landlording myself so if someone is open to allowing me to provide help or shadow a project of theirs, that would be wonderful.
Rental Property Investor · Atlanta, GA · Member since 2014 · 807 posts · 274 votes
10y
Hey @Chawn P. welcome to Bigger Pockets. Wholesalers get a bad wrap sometimes because we can at times underestimate the cost of repairs and/or overestimate the ARV. All that being said, end buyers can also be a little too conservative sometimes when determining repair costs and/or determining ARV (especially if they are financed and not real cash buyers).
When I'm wholesaling properties I've gotten away from giving rehab estimates and instead just tell people what I think needs to be done in order to get full ARV. The fact of the matter is the end buyer is the one who needs to know what they are going to spend anyway. I try to usually work backwards from what I know my strongest buyers are willing to pay for the property.
Another thing you can do to check your deal out is look at the cash sales (not all solds) for properties in similar shape in the immediate area in which you are looking to do a deal. When I say "immediate area" I mean within the same block to a quarter mile radius. Not the one mile radius stuff you will hear from appraisers. This can generally serve as a good test on whether or not you're actually offering a real deal to your end buyer.
In any scenario, good luck in your real estate investing journey. If there's anything I can do to help you, don't hesitate to reach out.
Kennesaw, GA · Member since 2015 · 9 posts · 1 vote
10y
Thanks for the information @Marvin McTaw. With you getting away from giving detailed rehab estimates do feel that it takes more "convincing" of the buyer that its a good deal? I would think that the more information the wholesaler can provide to the buyer ( detailed rehab cost, realistic comparables, etc.) the less "convincing" you have to do to assure them it's a good deal. They would have everything laid out in front of them and make a more sound decision. Thoughts?
Rental Property Investor · Atlanta, GA · Member since 2014 · 807 posts · 274 votes
10y
Hey @Chawn P.. No not really. I generally take a lot of pictures and videos of the properties. If end buyers ask me how much I think it will cost to fix it up, I will give them a general range but frankly my numbers don't really matter anyway. They are going to come up with their own numbers anyway.
Realtor · Metro ATL, GA · Member since 2015 · 64 posts · 11 votes
10y
Hi @Chawn P. I am a investor/real estate agent in the Atlanta area, my partners and I are always looking to connect with wholesalers to find properties. I would love to chat with you more about what you currently are doing and see if there is anything we could do together. Hope to talk to you soon.