How to Hire a Wholesaler to target a specific market?

Question

Hey All!

Looking for how best to find or push a good wholesaler or company that finds off market to a specific market if anyone has experience in this?

Retail market is too competitive where we are looking and we are a primed buyer ready to pull the trigger up to $700K

This would be financed so inspections are required.  TIA!

Duncan Hayes · Answer

Hi! Someone who wholesales here. I cover mainly Houston, TX but do deals virtually all over the nation. If you want to "employ" a wholesaler first you're going to want to look for off market deals. Yes, some wholesalers find properties on the MLS and assign them, it's very possible. In current market conditions though, where someone can list at $200,000 and get several offers at $220,000, it'd make no sense for a seller to sell at a discount to a wholesaler. If you're looking at financing through a bank then you're much better off just finding the deals yourself or with an agent.

If you're going to go into off market properties and use Hard/Private Money to finance the deal then that's a different story. You could do a couple things, like pay for their marketing expenses in return for them exclusively assigning their contracts to you. Or you could offer an advanced payment, that you'd deduct from any future assignment fees. When I first started, a guy offered to pay me $3k/mo so that I could focus on finding off market deals to assign to him. We ended up not proceeding due to things he had going on, but it was a lucrative offer for me at the time. Either way, you want to make sure you know the person you're getting into bed with. You don't want to pay someone $2k or $3k then they disappear, don't produce, or don't give you first pick of their contracts.

Hope that helps.

Jonathan Greene · Answer

You aren't focused on the right strategy here. You don't need a wholesaler because you aren't buying with cash. If you need inspections and appraisals, you need to be buying on the market because off-market cash buyers are going to beat you at lower prices. The worst pitch of all-time to an off-market seller is we still have to do inspections and there is an appraisal unless you are paying substantially more than cash, and maybe still not even then. The retail market is what it is, if you have marketing capital you could direct mail or call a list in your target area and pitch at as finance but you can pay more than cash buyers. But you also can't look at fixers with financing off-market, they won't take it.

Matthew Irish-Jones · Answer

@Max Schulman the off market wholesale market is just as competitive and requires cash.

You won’t get a wholesaler to spend that much time and effort if you are financing.

There are good reasons to buy on market properties.  Too competitive is a relative statement.

Kerry Noble Jr · Answer

That's one way......here in marion county.....I had a lady that would provide probate leads......it broke the leads down to the executor, petitioner, lawyer, number of properties etc......I saw a repition of the same attorneys......then called that way

you can actually look up probate cases and they will tell you the lawyer......

Duane Alexander · Answer

You’ll still be competing with a gazillion wholesalers and cash buyers even if you are doing direct mail yourself. How do you think wholesalers and cash buyers are getting their deals?

Kerry Noble Jr · Answer

In your case I would get with probate attorneys.......you won't have to do much marketing......the attorney will call you with hot opportunities.......Code violations and preforeclosures from the actual county level not through the data providers.......ita fresher at the county level IMO

Kaustubh Johri · Answer

@Duncan Hayes and others- Great points.

I am a flipper in Atlanta market. We do 3-5 high quality and extensive flips a year. Most of my deals have come from wholesalers in the past. I am looking to get into lead generation myself. Not to wholesale to others but to use it in house.

Looking to focus on 1-2 counties of interest where I operate. I am struggling with data source. What would you recommend ? Where do I pull the data from ? ny suggestions would be appreciated. (I am aware of Propstream and listsource)

Thanks !

Kaustubh Johri · Answer

Thanks @Kerry Noble Jr . So do I just google probate attorneys in the 1-2 counties of interest or is there a better way to do it ?

Max Schulman · Answer

I agree! After rethinking, the strategy should be direct mail since it will be financed through bank.

Terrell Garren · Answer

We live in different worlds. You need a wholesaler and I can't get swing a dead cat without hitting 5 of them.  I probably get 30 calls, texts, emails, snail mails a week from them. PITA.

How to Hire a Wholesaler to target a specific market?

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