Buyers List vs Motivated Seller - Chicken or the Egg & the Brand

[Jason Owens]

I am reaching out to the community for some perspective and advice.  Please assist.  I am new to the real estate industry and through my studying have come to feel that in my current situation contract assignment (wholesaling) would be the best way to enter the industry.  It would allow me to leverage my previous professional skills the most.  

I have also learned that "wholesalers" have a bad reputation in some circles and I want to establish myself as not one of those.  Therefore, my thinking is to create a relationship with ideally a group of cash buyers where I can get the specs of what they are looking for first, so that I am acquiring attractive deals.  Digital Marketing and Research are some of my strengths.  Which brings me to my question.... What way would you suggest for someone new to the industry who is looking to establish himself / company as professional, precise, thorough, and profitable wholesaler to work with?  Thanks for the insight.... Happy Investing!

[Dan Bosak]

Seller(s) first.  If you have a truly great deal, it'll be easier to find a buyer and to get their attention.  If you have a huge buyer's list and no good properties to sell, the list is useless.  And the serious, active buyers know the other serious and active buyers so if you call one and they are not interested, ask them if they know someone who would be interested.  

At worst, you can partner with a wholesaler in the area and blast out to their list and split the wholesale fee.  

Finding the great deal is the tough part so do that and you'll make money.  

and yes, a lot of wholesalers do have a bad reputation because they send out deals that are simply bad and their numbers are wrong.  I most often see rehab budgets that are way too low and to a lesser extend ARVs that are too high and based on the absolute top of the market (i.e. 1 sale at $310k but 10 in the $265-275k range and they say itlll be worth $310k).

Good Luck!