Wes Wendler

[Wes Wendler]

I'm interested in wholesaling in Hawaii and would like to know if anyone has experience out here? If so, what worked for you and what should I avoid? -Best Wes

[Michael Borger]

Hi @Wes Wendler - I started out wholesaling on Oahu to get my feet wet, establish some credibility, increase my knowledge of the business and local market and build my confidence. Then I moved on to flipping which I now do regularly. I currently have projects in Ewa Gentry, Ewa Beach and Hawaii Kai and am buying a house in Royal Kunia next week.

As far as what worked, it's simple..... market your rear end off. It's a numbers game, so if you're doing direct mail, market to a list of at least 500. Bandit signs can work. Knocking on doors can work. I did a great prehab deal in Aliamanu a couple years ago by driving for dollars while I was already in the neighborhood for another lead. Craigslist ads are free.

I'm a firm believer that marketing is 90% of the business.

What to avoid? Generally speaking, it's best to avoid going for multi-million dollar properties when you're starting out. Begin with a regular condo, townhouse or median-priced SFH. Don't try to make 100k wholesaling fee when your rehab buyer is projected to make 45k. Don't send out "deals" without any supporting materials, i.e. a CMA and simple scope of work. Lastly, when you're wholesaling it's best to ignore the MLS. You're competing with investors who don't need to account for a wholesale profit, so you'll almost always be better off with off-market motivated sellers.

Best wishes - keep me in mind as a buyer if you find a good deal.

Mike