Do you really need a list first?

Question

I'm trying to get started in wholesaling, targeting pre-foreclosures. I really want to help the people and want to make sure the sales go through. How important is it to build a list of buyers first? I have heard some say to just get the deals under contract and the buyers will come. I've also heard having a list first is dire. Opinions?

Joe Villeneuve · Answer

List first, properties next, just fill orders.

Why would you go through all the trouble to find, analyze, offer, get offer accepted, EMD in, only to find you can't get rid of the property before the closing date, and you lose your EMD money.  Now, the money you can get back, eventually, but you're not going to go very far if you are trying to take this route to success.

Like I said, the money (EMD) you can eventually get back somewhere along the way. The time is lost forever...and is more precious.

If you had the list first, all you have to do is fill the orders of what the list wants.  Time, and money, well spent.

Joe VilleneuveREcapSystemA2REIC

Mary B. · Answer

Just think of the yey's vs the ney's in your particular position. You will have to put up earnest monies averaging 5%to10% of the asking price. Although the properties are owned by the seller on title(likely an individual or couple), its the bank that has the power to approve or disapprove of your offer regardless of what the individual or couple wants. When dealing with banks the monies are non-refundable for the most part. They make sure its stated in their purchase agreements. I mention that to state: it would be best to secure several cash buyers ahead of time especially when you're doing business with banks as a wholesaler. That goes for short-sales, oreos etc., imo.

Kudos,

Mary