Wholesaling Newbie/Identifying Cash Buyers

[Lisa Parker]

Okay, I feel at this point I’m on information overload with nowhere to go. I want to start wholesaling to raise capital so that I can finance my first rehab property. Financing is impossible to get and I have no personal investor contacts, so my next option is to enter the wholesaling world because it takes no to very little cash up front to wholessle properties. I was also taught that you should wholesale with the integrity/the ability to purchase a property in case you can’t find a cash buyer. Of course, I don’t have the money to buy a property either. I feel like I’m stuck, no personal financing options, don’t know any investors, and can’t secure a hard money loan until I have at least one successful property under my belt. A random investor wouldn’t trust me off the bat bc I have no experience. I would love to start wholesaling but I don’t have a list of cash buyers ready to take on a property, so heading out there with no investors, no money, and no ability to purchase a property myself would be financial suicide I think. Will someone please share any strategies and pissibilities that I may be overlooking. Any and all feedback is greatly appreciated!

[Heath Ryans]

@Lisa Parker 

My most important question is have you been to your local REI meeting?

You should be able to buy a property if you dont have a cash buyer, but you dont HAVE to be able to. Just understand that there could be financial consequences for backing out of a contract, as well as having that stain on your reputation.

Im positive there is a hard money lender out there who will lend to you. You may need to start an llc before some of them will lend. I have never used hard money but the lenders are out there. You will just be charged a much higher rate because of your lack of experience.

If you find a good deal and present it to an investor, whether they know you or not, if its actually a good deal, they will be interested.