How to get in touch with a Wholesaler in LA?

Question

I'm looking for a property to flip, and I've heard that getting in touch with a wholesaler might be a good idea.  I've been looking for a property and still haven't found one.

How can one find a wholesaler in Los Angeles?

Tom Mole · Answer

Do you have a good idea what you're looking for? You'll need that, so be ready with your shopping list.  Pretend that I'm your wholesaler ('cause perhaps I will be if you turn out to be a good buyer). Allow me to inquire:

• What locations are you looking to invest in? What areas would you disqualify?
• Are you looking for SFR's, multifamily or something else? 
• Assuming SFR like most folks, how many bedrooms/bathrooms? How many square feet of living area? What size parcel?
• Do want major rehabs or minor "floor and walls" fixers?
• What discount on ARV do you call a great deal?
• Can you do your own due diligence (i.e. do comps and run the numbers)?
• What sort of neighborhoods do you consider?
• How many projects a year can you handle?
• What price range works for you?
• What do you plan to do with the finished property? What's your exit strategy?
• Do you have the funding to take your project from acquisition to exit?

...and now the big one....

• If I bring you a deal that meets your criteria, but you found out that I would be making an unusually large assignment fee, would that make you uncomfortable about going forward with the deal?

The fundamental service the wholesaler brings you is the negotiated and structured deal. They get the deal under contract for you then they sell you the contract. There's a lot that goes into that, so don't take it lightly. A good wholesaler can provide you a deal structured to make you a reasonable profit without you having to spend the time and frustration of finding it. That's BIG!

For the most part when you buy the purchase contract the wholesaler's job is done. Some wholesalers will nurse the contract through closing, but don't count on it. If you feel you need help with the project after the wholesaler has been paid, find a more seasoned rehabber to partner with until you gain a little more experience.

All that being said, keep in mind that not all wholesalers are the same. Many people that call themselves wholesalers suck at the task. Make sure you do your own homework. Vet your wholesaler as you vet the deal. Trust, but verify.

Happy New Year!!

Aaron Mazzrillo · Answer

I'd recommend hitting up some of the local monthly real estate investing clubs. Southern California has more clubs than probably any other state has in total. I can think of about 10 off the top of my head. Take a month, map them all out, and plan on hitting as many as you can during that month. Get your name out there that you're a buyer. Hope you have cash, cuz in SoCal, we move fast and those without cash or the ability to get funds quickly will have a hard time doing business. Try connecting with Anchor Loans. They actually used to wholesale deals with financing in place. You might want to google them and give them a call.

Udayabagya Halim · Answer

@Aaron Mazzrillo

Yeah, I've checked the bigger pocket website for such clubs.  http://www.biggerpockets.com/rei/california-real-e...

There are 2 in LA, and both have "real estate guru" website feel to them.  I wasn't sure if they are legit.

Aaron Mazzrillo · Answer

I highly recommend this one;

lariea - 2nd Wed of each month

Los Angeles & Asian Real Estate Investors Meetup

Arcadia Presbyterian Church, 121 Alice Street, Arcadia, CA 91006, 6-9:30PM

More Info at www.meetup.com/Los-Angeles-Asian-Real-Estate-Investors-Meetup/

Matthew Nixon · Answer

@Udayabagya Halim

The FIBI events in Long Beach and South Bay are good meet-ups to attend. I also believe there will be a BP meet-up on January the 11th at 2pm in West LA.

P.S. How do I tag someone who has not written in this thread?

Emerson Miranda · Answer

Dear BP's,

I'm a Wholesaler in Los Angeles.

Send me your questions, and I'll do my best to answer them.

Regards,

Brian Woitte · Answer

@Tom Mole Great info!

Tom Mole · Answer

@Udayabagya Halim, I took at look at the BiggerPockets list of CA REIA's. I believe the two you found in LA are Sam's Real Estate Club and Prosperity Through Real Estate. I've been to both multiple times.

I've stopped going to Prosperity Through Real Estate because I did NOT find it to be a good networking environment. Though there is usually a large number of attendees I found it to be little more than a platform for selling the latest shiny object. I've gotten the same sort of feedback from others tried to warn me of the same thing. Nothing wrong, if that's what you're looking for, but that's not what you're looking for. You need to find a good wholesaler.

On the other hand, I have found Sam's Real Estate Club to be a great networking opportunity. Networking is encouraged there. Sam's opinion is that your networth is a direct function of your network. If you can't find a wholesaler there, you're not trying. You'll find private money people, other rehabbers, market specialists, etc. If you don't find anyone to work with in the current meeting, ask Sam. He will link you up with one or more good people. I'll nearly always be there. I'm the loud and obnoxious guy. Find me. I'll introduce you to Sam. I think we'll be fast friends.

I know a number of other networking opportunities that I could endorse, but since they don't appear on the list BP provided I don't want to mention them in the forum. I don't want to tick off the moderator.

All the best.

Will F. · Answer

I'm also looking for legit wholesellers in LA with legit deals.

The problem is a lot of the one's I've found just forward and reforward deals that they don't have in contract.

A lot of them show deals that are already on the MLS and they either get them into contract and ad on a fee that makes the house no longer a deal.

Udayabagya Halim · Answer

I forgot to ask, what do wholesaler offer as part of their service?

How to get in touch with a Wholesaler in LA?

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