Pros/cons of buying from wholesaler for newbie in Connecticut

[Philip Pape]

Hi all, I'm a new investor in Hartford County, Connecticut. I'm interested in flipping SFRs. I will be meeting with some agents/brokers about finding REOs, short sales, and such. However, I'm also interested in finding deals from wholesalers.

Does anyone from the area have advice on the pros/cons, any helpful educational resources, and how actually to find solid wholesalers? I've heard time and again on the BP podcast how most wholesalers just don't cut it (they either undervalue the ARV, pay too much, misrepresent the rehab costs, or take too much profit), but I understand that's just a generalization.

I appreciate any insight you have!

[Pratik P.]

As a wholesaler myself, I would suggest that you treat a wholesale deal just like any other. Use the wholesaler's numbers and basic info to determine if it's something you'd be interested in. Then do your own analysis on the property to determine what you think the ARV, rehab costs, holding costs, etc will be.

I wouldn't worry about what the wholesaler is making.  If the numbers work and its a good deal for you,  then that should be enough for you to buy the property. Once you find a good wholesaler,  try to build a good relationship with them and they will bring you deals first. 

Hope that helps!