Oklahoma "Wholesale" Deals

[Brad Litke]

Good evening, 

I have been listening to the last 100 or so episodes and love what I hear on the podcasts. I am planning to become more active on the forums so kicking it off with this post. Just curious if others are in the same boat. Over the last year or so I've come into contact with numerous "wholesalers". The issue is, 9 out of 10 of these "wholesale" deals don't appear that way to me. Almost every single one of them go like this. ARV $100K, asking price $80K. Mind you these houses aren't rent ready. Most need 10-15K of work and that is keeping most repairs in house. I'm curious who is buying and how that works? It just doesn't seem feasible to me to try and rent houses out when I'm in them for 90% ARV. Does anyone else see this being the case as well, or am I just hooked up with the wrong wholesalers? My last 3 deals I bought from MLS between 50-60% ARV. How am I finding better deals on MLS than wholesalers are offering up? Appreciate any input.

[Jeff Filali]

@Brad Litke you're exactly right. Most the wholesalers in our area contact with terrible deals, inflated ARVs, no clue on repairs needed, etc. Many never have enough information on their properties, no photos, no access, etc. Its a joke. They say its ARV is $100K, but a quick search shows more like $80K, they say it needs $5K repairs, but turns into $20K+. There's also a growing fad of wholesalers contacting who do not even have the house under contract, its like they're trying to mark up deals they find from other wholesalers or flippers. I've even had a few contact me about properties I already owned or had under contract to buy.

I finally brought on two good acquisitions guys I had worked with who are very good at the details, and know good deals from bad deals, and I use them for all my acquisitions now.  My marketing for my own investing was generating more deals than I could buy myself, so I send all the leads to them now and let them do all the work (calling, negotiating, going to property to get photos, etc.) and once they contract it, I keep 1st right to purchase and pay them a fee for their time if I do.  If I do not choose to buy the property, I let them wholesale them and I pass the info on to other investors.  Its worth it to me because it saves me a lot of time, and I'm still getting good deals, and more than I can buy.

Let me know if I can ever help you.  I mainly buy under $50K and in the smaller communities, suburbs throughout the state.  So, most deals in the metros, I let them wholesale.