Wholesale proposition, thoughts?

Question

Hi BP,

I made a connection with a landlord that would like to find something to rehab and rent. I originally was looking to buy one of his current properties, but nothing I could do a deal on. The conversation continued and he knows I am actively evaluating his target market, so he asked me to let him know if I find something to his liking (he gave me a few loose requirements) that we can do a wholesale deal on.

I am not looking to make this a business, I understand there are legalities I need to learn, but how does a guy on the couch wholesale a property?

If I find a home, no matter how hard I try all he has to do is google the address and go buy it himself. Seems like a good guy that may have a moral compass and still do the deal with me as a finders fee, but is there ways to give myself the advantage? Not trying to make this a career, just trying to go after opportunity.

Thanks Ladies & Gents

Nick C. · Answer

This seems like a waste of time. You found a buyer. I could throw a rock right now and hit 100 buyers. If you do find a good deal, sure you could sell it to him, or the thousands of other people searching for good deals right now.

Lydia R. · Answer

@Gino Tomba If you find something that you know he will be interested in then you can put it under contract and wholesale it to him as you mentioned. Obviously since you arent trying to be a wholesaler you probably dont want to do that because if your guy decides he doesnt want the property then you are stuck buying a property you dont want. You cant officially get a commission for finding him these properties because you arent licensed, but perhaps be a birddog and get a referral fee instead? Make sure you put the agreement in writing so he can be held accountable in case he gets amnesia after you find something he wants. Hope this helps!

Victor Vella · Answer

I have friends, family and industry partners that it all starts with looking at zillow on the couch. Every deal starts with " hey this property is below market value" - my job as an investor is view the property,discover what value can I unlock, how much does it take and ultimately make the ask the appropriate dollar amount.

Even though I am on real estate sites daily, I expect to miss opportunities right in front of me.  Sometimes it takes another eye to slow down.

That being said - my best partners bring stuff day 1 on the market or off market deals.  AKA direct mail, pre-forclosures, friends looking to sell and move quick, you mentioned reverse sourcing rentals on facebook marketplace, etc

The more houses you look at the better your learn your market for when you move on your first investment.....

Wholesale proposition, thoughts?

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