What are investors looking for from wholesalers?

[Ashley Mierez]

Ok Im officially deciding to go down the wholesaling route now I'm currently working for a company locally to wholesale.  My ultimate goal is to learn what investors are looking for from me as a wholesaler? Im presenting myself as a honest and transparent person looking to build relationships and learn the process of flipping a home. I feel like being in this business is a great starting point to provide value to investors and learning how to find great deals for the investors that are experienced and already know what they want and what they are looking for in a flip. I want investors to look to me for these properties and for them to actually be great deals where everyone wins in the end. so my questions are; 

What are some key things investors are looking for in a deal from wholesalers? 

Top 3 things I should master as a wholesaler?  right now Im practicing comping 

3 random tips as a newbie? 

[Taylor Dasch]

The only thing that I really care about is room on the deal. A lot of wholesalers lock it up at 75% - repairs and then try to move it at 80% - 85% - repairs. If your market is buying at that number then thats perfect but thats not the case here. I would say know the numbers and then bring an actual deal to the investor. For me on wholesaling, if I make 5k I am good with that. I usually try to get 10k but sometimes its not possible and I would prefer to make something and give the investor a good deal rather than make nothing trying to move a bad deal. Also, having a rehab budget already laid out with explanations on how you got the numbers would help and is definitely a plus when I look at deals even though I typically wont use their numbers it at least shows a little more effort. 

[Bill B.]

Don’t lie to the seller. That will put you above 90% of the country’s wholesalers. The seller should not be expecting you to be the buyer, or surprised when you aren’t. 

Try to arrange for an “open house” day for buyers to walk through with contractors and eliminate inspection problems/delays. 

Price it right. As mentioned take a smaller cut to complete a deal if necessary. It will be remembered and appreciated. Good luck. 

Ps. If you can’t “always close” on every home you put under contract, aim for 90-95%. Anything less is wasting your time and screwing the seller. It also means you’ve got a problem. Your deal analysis/price, your marketing, or your buyer pool are likely culprits. 

[Doug Smith]

Number 1, Always tell the truth and deal fairly. Number 2, a lot of wholesalers forget that building a business is a long-term thing and they get greedy leaving no room left in the deal, #3, make sure you've disclosed evertything to all parties. Investors want a person that they consider a good "business partner", but most of the wholesalers I see come of as borderline crimnals. Be a pro, be honest, be fair, be consistent, communicate, and you'll do well from an investor's perspective. 

[David Martoyan]

@Ashley Mierez 

Great mindset! Here’s what I’ve learned so far:

Investors want deals with solid profit potential—so they're always looking at the numbers: a good ARV, reasonable rehab costs, and enough room to make a return. They also appreciate honesty and transparency so they can make decisions fast without any surprises.

Some of the top skills that you can focus on are:

1. Comping: Knowing your comps inside out is a must.
2. Negotiation: Being able to connect with sellers and strike a good deal is huge.
3. Networking: Relationships with buyers, agents, and other wholesalers are invaluable.
4. Also, Get to know your local market being able to talk the talk in your area will help a lot. And Stay consistent, wholesaling takes time, but the more deals you look at, the better you get.
   

As a fellow wholesaler working to build strong relationships and find good deals, I can tell you that being honest, doing your research, and staying patient is the key. Keep going!

[David Martoyan]

Quote from @Doug Smith:

Number 1, Always tell the truth and deal fairly. Number 2, a lot of wholesalers forget that building a business is a long-term thing and they get greedy leaving no room left in the deal, #3, make sure you've disclosed evertything to all parties. Investors want a person that they consider a good "business partner", but most of the wholesalers I see come of as borderline crimnals. Be a pro, be honest, be fair, be consistent, communicate, and you'll do well from an investor's perspective. 

Definitely agree with Doug, telling the truth and being transparent is one of the biggest advantages that you can have as a wholesaler. Always value clear communication!

[David Martoyan]

Quote from @Taylor Dasch:

The only thing that I really care about is room on the deal. A lot of wholesalers lock it up at 75% - repairs and then try to move it at 80% - 85% - repairs. If your market is buying at that number then thats perfect but thats not the case here. I would say know the numbers and then bring an actual deal to the investor. For me on wholesaling, if I make 5k I am good with that. I usually try to get 10k but sometimes its not possible and I would prefer to make something and give the investor a good deal rather than make nothing trying to move a bad deal. Also, having a rehab budget already laid out with explanations on how you got the numbers would help and is definitely a plus when I look at deals even though I typically wont use their numbers it at least shows a little more effort. 

Sometimes making a smaller profit and providing value is far better than holding out for a bigger payday on a bad deal, I like that. It's all about building trust and relationships, and in the long run, that will pay off way more than just trying to squezze a specific deal. Great Point Taylor!