Wholesalers and Birddogs

[Paul Carter]

Hello BP......recently just got preapproved through a private lender to purchase property either through buy and hold or flipping. Now the problem that I'm having is finding a great deal. Ive been scouring the MLS night and day and have made a few offers. Im finding that deals are priced way to high and the really good ones I get outbid on. The excitement I had is starting to turn to frustration. I've heard people talk about wholesalers and birddogs are a great source for deals....are there any on here? Much help would be greatly appreciated. Thanks.

[Andrew Johnson]

@Paul Carter For what it's worth you might want to talk through your numbers. Have you walked through 20 properties or 100 properties? Does "a few offers" mean 3 or 30? When you're getting outbid is it by $5K or $50K? When you read about the flippers here adhering to the 70% rule and always "losing" it's easy to see why. Someone else (assuming rehab and ARV calculations are the same) is willing to pay 75% and forgo a bit of the upside to get the single instead of the triple (since we all love baseball parlance).

What I've seen from the limited interaction with wholesalers is that their ARV is usually high and/or the neighborhood is just to dicey for me to even want to look at. I guarantee there are Philly wholesalers here on BP, they'll add you to their list, etc. However, I do think that @Cody L. is spot on in that there are relatively few quality wholesalers and they will be loyal to their cash-buyers and always give them first shot at their deals.  I know that's what I would do if I was in their situation.  So you'll get the second crack and deals.  That's not a deal-breaker, just know that going into it.  Kind of like if you look on LoopNet.  Yes, there are listings there but the great ones (I'd hazard to guess) are scooped up before the broker has a chance to even list them.  

So that's two cents of perspective...maybe one cent...definitely not three cents...