What if you can't find a buyer?

Question

So I am new to wholesaling, obviously. I've been learning as much as I can. Everyone tells you to take the plunge start making calls because it's the best way to learn. So I did that and have house under contract but I can't find a buyer. So what do you do if you can't find a buyer? I mean I can't even get people to contact me other than skip tracers and virtual assistants. Everywhere I look for buyers there only seems to be bots or people trying to sell me a service. I have reached out to a few general contractors in the area and interior Designers but I haven't heard back. I don't know if I'm looking in the wrong places or if it's because of the holiday. Any advice would be appreciated.

Andrew Frowiss · Answer

Hi @Stacy Wheeler when I was wholesaling back in the day I found the best way to find buyer's was going to Investing meet ups. I found lots of people there with the money and motivation to do a deal, but no deals on the horizon. Some regular Investor meetings have larger email groups where they ask each other for help, or pitch deals to find buyer's or partners. See if you can get on a list like this. Alternatively there is (or at least used to be) a section of Bigger Pockets where people can post deals they need partners on. You might want to look into that as well.

Carissa Trent · Answer

Congrats on taking the plunge Stacy! You can never reap the rewards without taking the risk. I concur with previous advise of basically networking with any and all routes! It takes some time to build your book of buyers, I would love to talk more about breaking into the business! Feel free to private message!

Brandon Vukelich · Answer

Just my 2 cents but I suggest you work on building a list of buyers and their criteria, basically budget and locations.  I built a list of around 80 buyers in less than a week by networking within local REI groups on Facebook, looking up recent flip listings (contacting the seller) and posting on Craigslist.  But generally when someone says they can't find a buyer for their deal in this market, it's typically not a very good deal.  If you're new to wholesaling, are you confident the property you have under contract has enough room for profit for a flipper?  How did you estimate for rehab and ARV?  As FYI, once I had my list there were about three VIPs that bought everything I had for them. If they didn't want it, I knew the deal needed to be re-worked.  Best wishes on the deal!

Bruce Alston · Answer

As Wholesaler & Investor for 19 years , one of the first rules is not to Prospect for deals without Money$$"

I have taught mentees in the beginning build your buyer's list 1st..Not an email list, but Investors list that gives you insight on the areas, pricing, that their Investors are interested in...it's better to go shopping with a list and the potential to have someone to pay for the groceries, than shopping blindly without any potential buyer and hoping they like what you put in the grocery cart

Ryan G Cook · Answer

Hey @Stacy Wheeler - another alternative option would be to call/connect with the property managers in the area and surrounding markets - the property managers know exactly what their clients (whose properties they already manage) are looking for --- and guess who would be particularly incentivized to make sure their clients buy more investment properties? See where I'm going with this? Property managers have investor relationships, and if they buy more properties, those property managers generate more income!

I hope you pull this off! Keep us updated!

Stacy Schmitt · Answer

Thank you everyone for all of the advice I really appreciate it. This whole experience has been priceless as far as being a learning lesson. I am still plugging away at it and have at least learned why I am having issues moving it as well as what I need to do to get rid of it. I was able to figure it out because of the advice I received on here and by continuing to watch videos, ask questions, listen to podcasts, and just be a sponge. It's nice to know there is at least one platform where you can ask questions and get legit answers instead of a bunch of people trying to pick you up or sell you something that has nothing to do with the question you asked or the information you seek.

Bruce Alston · Answer

Never go shopping for Groceries without Money.

If you are Wholesaling correctly you should already have at least 10 investors,  You have as buyer prospects.

Jerryll Noorden · Answer

OK Let Ninja Yoda Jedi Master MSOOTKAUG, teach you all how to wholesale. Ready?

Here is the #1 rule you need to follow to become a 7 figure earner. OK sit down, focus, pay attention.

The #1 rule to wholesaling successfully is simply this.

NEVER sign a contract UNLESS the seller agrees to YOUR numbers!

Let me explain.

Here is what most of you are doing, and correct me if I am wrong, but don't correct me because I am never wrong.

You will negotiate negotiate and more negotiate with the seller until they won't budge. Then you sign said contract and now rush to find a buyer. Now read that out loud.

You DO now see how stupid that is yes? You can hear it saying it out loud.

We ONLY sign a contract when it is an obvious home run deal. When the deal is good for us, it is good for everyone else. You will NEVER have issues finding a buyer if you wave a home-run deal around.

NEVER!!!!

EVER!

Your contracts will be sold within hours. No kidding.

So the real question is not "How do I find cash buyers" right? The TRUE issue here is, "HOW do I sign homerun deals". Well look at this:

Wait let me zoom in for you.:

Yes, you are seeing this right. We got this house for 2 friggin gallons of milk. $10 dollars. No foreclosure, no tax lien, no probate, no NOTHING! Just a motivated seller. ARV = $250K

Now how about this one.

We offered $11K

ARV = $183K

Neighbor offered them $40K

They picked us at $11K and they had to bring $70K to the table.

Do you think I would have ANY issues wholesaling this? Of course not.

It is NOT about issues finding a cash buyers. It is about finding MOTIVATED SELLERS>

This is what ALL of you mortals are doing wrong. Yes ALL of you! I have been trying to teach you lal this for years, but you jump over my replies and you respond to people with stupid advise. Well, that's on you.

Forget trying to find cash buyers. Get a good deal signed and cash buyers will find YOU!. You do not need cash buyers, cash buyers need you because most cash buyers SUCK monkey butt through a straw, when it comes to off market motivated seller lead generation.

All hail MSOOTKAUG!

Y'all can start worshipping the ground I walk on right now.. Thank you thank you. Whose baby do you want me to kiss?

Mike Klarman · Answer

Wholesaling can be tough to start because you kind of need a network of real estate investors to pitch too.  Look into your local real estate investors group.  It's a good place to start.  Maybe build a website you can direct people to and list your open contracts.

Good Luck.

Stacy Schmitt · Answer

No, I'm not sure. I thought I was but now I'm second-guessing. The amount I'm asking is 15k the rehab is going to be around 24k and the after repair value I have been saying is around 64k but after looking at how much the other houses in the neighborhood that are similar to mine are going for it (between 70k-100k) I may have undervalued mine. What exactly is considered a good profit? There was a house about an hour away from mine and it was going for 10k several people had made offers on it and the market over there is a solid ARV of 60k. So I believed that since the area I picked was selling houses for more plus the city is pumping a lot of money into the neighborhood to revitalize it and this house was only 5k more than the other that it was a good property. Was I wrong?

What if you can't find a buyer?

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