Hi, I'm looking to purchase another property for Fix and Flip, or BRRR, and this time I would to purchase it Off Market, at a better price, and not to go through a bidding war, which leaves very little profit, or equity depending on the strategy. If you are a seasoned Fix and Flip or BRRR investor, would you try to get the property from Whole Sellers, brokers, etc, or learn and become a whole seller yourself?
Lender · Fort Worth, TX · Member since 2016 · 8k+ posts · 6k+ votes
3y
@Atanas Angeles yeah, everyone is different but I would suggest the wholesaling route at first. Networking with local people is good practice anyway. Try some local real estate meetup groups. Meetup.com is a good resource for those but some of the groups will also post here on Bigger Pockets Marketplace too. Even facebook might have some good local groups for you. But post locally for this. That’s the best bet.
Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
3y
Wholesaling does take time and money. It is not easy to do and out the gate you won't have a lot of traction(unless you build a system or partner with someone who knows it). If you have both to dedicate to it then that'd be a better option. The easier option is going through wholesalers and networking. You will still have to compete and sort through deals but that is what plenty of investors do. Make sure to do your due diligence and run comps for wholesale deals
Wholesaling does take time and money. It is not easy to do and out the gate you won't have a lot of traction(unless you build a system or partner with someone who knows it). If you have both to dedicate to it then that'd be a better option. The easier option is going through wholesalers and networking. You will still have to compete and sort through deals but that is what plenty of investors do. Make sure to do your due diligence and run comps for wholesale deals
Thank you Caleb, I'm definitely leaning more towards the strategy of networking and connecting with whole sellers, and sourcing properties that way rather than me trying to become an expert at wholesaling, which would derail in a completely different direction. Perhaps down the road, but not on the first or second flip deal. Thank you
Lender · Fort Worth, TX · Member since 2016 · 8k+ posts · 6k+ votes
3y
@Atanas Angeles yeah, everyone is different but I would suggest the wholesaling route at first. Networking with local people is good practice anyway. Try some local real estate meetup groups. Meetup.com is a good resource for those but some of the groups will also post here on Bigger Pockets Marketplace too. Even facebook might have some good local groups for you. But post locally for this. That’s the best bet.
@Atanas Angeles yeah, everyone is different but I would suggest the wholesaling route at first. Networking with local people is good practice anyway. Try some local real estate meetup groups. Meetup.com is a good resource for those but some of the groups will also post here on Bigger Pockets Marketplace too. Even facebook might have some good local groups for you. But post locally for this. That’s the best bet.
Thank you, I'm already participating in meet ups, and facebook groups and now I'm reassured that I'm on the right path.
Real Estate Agent · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes
3y
A couple of things to keep in mind:
1. What is your time worth? That's the point of going through wholesalers and Realtors. They do the groundwork for you.
2. Finding off market through Realtors can be lucrative depending on the arrangement. For example if you tell the agent that they get the listing when it is fixed up, then they are more likely to send you deals.
3. You can go direct to potential sellers and I am seeing it done. As mentioned, it takes time, money, and you need the team in place to be able to do the transfer.
Although I'm sure it happens all the time, so far 100% of wholesale deals in So Cal have never penciled out for me. They are often overpriced, lower than actual construction costs, or inflated ARVs. You really have to do your own due diligence before making any deal work. Even in the MLS, it's free to submit an offer. You never know.
Rental Property Investor · Gilbert, AZ · Member since 2016 · 3k+ posts · 4k+ votes
3y
@Atanas Angeles I purchase most of my properties through wholesalers currently. Last year we bought about 60 properties all under market, the majority of them were through wholesalers.
I get about 50-100 properties sent to my email daily from wholesalers. Most of them would not make me money though so I have to analyze the ones I am interested in before reaching out to the wholesaler and getting the contract assigned to me.
Investor · Laurel, MD · Member since 2014 · 23 posts · 7 votes
3y
This is all great content as I am in the same boat.
@Rick Albert I love that point about getting realtors to send me off market deals and getting them the listing on the back end! I will be reaching out to a few realtors today! Thanks!