As a rehabber, what are you looking for in a wholesaler?

Question

Hey Folks,

I've been building my buyers list pretty consistently these last two weeks and I'm looking for more ways to connect with rehabbers. So far my best investors (and most reliable/efficient colleagues) BY FAR on my list have been rehabbers. I want to actively hunt each and everyone of them down and offer my services to them. Two questions:

1) As a wholesaler how can I stand out amongst other wholesalers? Of course bringing great deals that have the numbers right on a consistent basis is key, but what else can I do? I try to keep my emails and conversations on the short side and to the point. Please, for all you experienced rehabbers, what else do you look for in a good rehabber??!!!

2. If you were a wholesaler, how would you track yourself down? I have a RE agent working on all cash sales in my area in the past 6 months. I've been reaching out to investors in my area on BP, Craigslist, LinkedIn, friends, family, google searches, investor directories, cold calls, etc. I plan to attend my next REIA meeting as well. I'm planning a bandit sign campaign shortly. Any outside the box suggestions? Is there a rehabbers bar where you all meet up after work? Please throw me some ideas here!!! I'm motivated and ready to help!!!!

Scott R. · Answer

1 bathroom houses dont do much for rehabbers, unless one can be added and the price is there for this improvement.
          
          weird floorplans (normally additions and such) are a huge turn off for rehabbers
          
          Neighbors, doesnt matter how nice you make that house if the neighbors houses are awful or neighborhoods arent the greatest. 
          
          You want the common house. Not too big for the area, not too small, not too weird looking ect. 
          
          You REALLY need to know the neighborhood as well, theres certain areas of a neighborhood that are way different then the other side of the neighborhood. Just cause its in the "whatever" neighborhood doesnt mean the sqft price is all the same. 
          
          Busy streets normally sell for minimum 10% less and are less attractive to rehabbers.
          
          My last REIA they were talking about mistakes they made, and they were talking about price per sqft on houses too big for the area and how many newbes calculate price based off sqft but it doesnt mean much it if doesnt match the neighborhood.
          
          your farm areas should have lots of OO sales as well as houses minimum 30+ years of equity

Mark N.A · Answer

Along with Scott's great post I like finding opportunities for forced appreciation.

Adding a bath or bed are foremost (with the right floorplan and structure, of course).  Can you convert the attic and add stairs?

Slab-built houses don't excite me.  Neither do split levels.  Nor shot gun dupes.  Or anything with HOAs or where the owner pays ANY utilities.

Around here enclosing the garage and thereby adding heated square feet was popular once but I don't like those, primarily because I see a lot of people that want an actual garage.

The sweet spot here are 3/2s, though the spoiled college crowd demands a private bath with each bedroom.

Speaking of the spoiled set, I just rented a four-bed to three college girls who converted the fourth bedroom into a MAKEUP ROOM.  Real college 'PhDs' (Parents Have Dough).

Sage Jankowitz · Answer

Eddie I completely agree. I've spoken with a ton of investors in the past few weeks as I gear up to take on my farm areas. I'm seeing a huge discrepancy between what investors are actually looking for from a wholesaler and what most wholesalers provide.

I believe this is where most wholesalers go wrong. They come from the mindset of "what will help me make a quick buck?", instead of asking themselves, "what will make my investors happy and have them coming back time and time again?"

I'm quickly realizing the success of your business is directly related to your relationships with other people. Only when you can provide for others in your network are they going to provide for you.

Demos Loizides · Answer

When it comes to "honest assessments of the repairs", wouldn't the rehabber be in a better position for this, than the wholesaler? If a wholesaler's figures are off, it probably isn't to mislead a potential buyer. If the numbers are off, it's probably because wholesalers usually aren't in the business of renovating houses.

The buyer should always do their own due diligence, even if the wholesaler is very good at repair estimates.

Sage Jankowitz · Answer

I agree Demos, but I think a great wholesaler is going to give you a more accurate number upfront. From the investors I spoke with they sounded sick and tired of wholesalers jerking them around with whacky repair estimates and very cautious to work with me at first.

I actually just started another thread on accurate repair estimate sheets bc I think from a wholesalers standpoint this is an extremely important issue that is often overlooked by most wholesalers I've spoken with.

Jason Fant · Answer

If your targeting rehabbers (fix and retail), another thing to keep in mind is targeting areas that are primarily owner occupied. A primary objective for rehabbers is to get out quick once we're done. Flipping houses in high rental areas is not all that conducive to that goal.

Luis A. · Answer

Honest assessments of the repair work needed...

Sage Jankowitz · Answer

Good point Jason...I'll keep that in mind from here on out.

Sage Jankowitz · Answer

The college kids expect each bedroom to have their own bathroom down in north carolina? When I was in college we had one bathroom for an entire floor, what is that all about??!!! And I thought it was us northeasters that were the spoiled ones.

Rehabber preferences vary GREATLY depending on the area. It's really going to be a matter of getting properties that appear good under contract and asking a lot of questions from my buyers in the (hopefully) rare situations when they don't bite...

As a rehabber, what are you looking for in a wholesaler?

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