How to Find Buyers

[Aasin Pritchard]

I'm an aspiring Whole Saler on Long Island, how do I know what is a good deal to present to a buyer? 

[Adam Davis]

Hey Aasin, I get it. You're looking in your market to make sure you can find properties to wholesale, and don't want to do the big announcement blast to investors until you have those properties...

Here's what I'd suggest: find the investors first, and make them happy by providing actual good investments.

Here's the thing: investors will always be there. Great properties may get bought up in a heartbeat.

Meet your investors first. Make sure they'll be there when that property comes along. Then, you'll be set. It can be here, in the forums; that works for me. You don't have to meet them in person. Just make sure they exist.

Second, make sure you can identify a good property. If you can't run comps on your own or with a member of your team, use Zillow or Redfin or your favorite agent's website (mine is adam-davis.remax.net for example) and search for the criteria (bed/bath/sf) of the property you're looking for, or search for the address. That search should yield a price estimate. Take 20-40% off that price, and you've got yourself a deal--that's your purchase price. If you can't sell that property for 20-40%+ more than you bought it for, then it's a bad deal. In essence, less than 20% (of the commonly-held-average) ARV is a slim margin, and you should justify it according to your experience and comfort. It may not be justifiable. Don't force it unless you're very experienced.

These are interchangeable to some degree, but remember you must always have investors (end-buyers)