Basic Wholesale questions

[Dan Miller]

Hey all,

I have a few questions that are somewhat unrelated to each directly, but all tie to the process of wholesaling. As I'm a newbie, I'm trying to first identify leads by using a Realtor, focusing on a specific neighborhood with "ugly" homes--1950s and 60s homes--older neighborhoods, and testing for motivation by putting out lowball offers on the properties in that neighborhood.

Here are my questions:

1) Once I've chosen an "ugly" house neighborhood and a realtor, should I test the waters by putting offers out on every house for sale in that neighborhood (assuming it's not brand new), or is the idea to pick and choose based on the listing comments sounding like it's either bankowned or a rehab project?

2) Would you recommend taking a contractor to a property the first time to learn of costs BEFORE of AFTER testing for motivation with an initial offer? I have no idea how much things cost, and I doubt it's a good use of time to go see properties before making a low offer to see if the owners are even motivated. What should I do in this case?

3) I've talked to one hard money lender, but that lender wants to prequalify me by doing a credit check. My credit is excellent, but I thought HMLs don't check credit. Is this common? I was told they would have to prequalify any end buyer as well. Is that normal?

4) How should I go about finding buyers? I've gone to my local REIAs and have business cards, but I don't feel like I have a robust buyers lists. Should I just go get good deals under control and then post messages on local bullet boards of REIAs, assuming that if the deal is good, there will be ivnestors to take it?

5) What happens if I can't find a buyer? Would I lose my earnest money deposit?

I'm trying to get started and manage that fear that I'm feeling from not knowing what I don't know, but it's tough. Looking for some encouragement and guidance.

Thanks,
Dan