Finding properties to wholesale

[Brianna Walker]

Hello,

So pretty much I'm wondering about how to find properties to put under contract to wholesale. I feel I'm constantly getting the same answers, "drive for dollars" or MLS. I'm not currently licensed and won't be until a few more months and don't want driving for dollars to be my only hope. Any ideas? Thank you in advance.

[Victor Menasce]

You might be approaching it from the wrong perspective. You're focusing on creating supply of wholesale deals. Try understanding what your buyers want, and then go create that supply. 

For example, in Toronto, there is very little developable land available. If I can assemble 2-3 lots for construction, I have a large number of buyers ready, willing and able to purchase. I know what their purchase criteria are, and I know what will be suitable for new construction. I have to do the due diligence with the city to make sure the allowances for water, sewer, electric infrastructure can be accommodated. I know what they're willing to pay per door for the land.

By focusing on the demand side, I can go create the deals needed on the supply side. Yes, there is quite a bit of relationship building required with potential sellers. In that situation, I might choose to raise the capital and build the project, or possibly flip it to another developer if I can't raise the funds myself. But I approach it as if I was going to do the project myself. 

Don't focus on finding deals at random. Deals are easier to find when you know very specifically what to look for as determined by your buyers.

I hope that helps.

Victor.