How are you finding buyers for wholesale deals?

Question

Hey Bigger Pockets,

I consistently hear the importance of finding good wholesale deals. I have had no trouble finding deals, but I am having trouble getting them in front of cash buyers. How are you guys finding these buyers? I have several deals on hold because I do not want to waste a security deposit by not finding an end buyer. This topic is typically glossed over in podcasts. I would like to know what I am missing.

Thanks,

Nathan

Nathan Killebrew · Answer

@Jerryll Noorden

I know what you mean. I try to be very conservative in my estimations. I do not want to be the inflated Arv guy. Thank you for your input.

Jerryll Noorden · Answer

Hey Nathan,

Be carefule here.

A lot of wholelers think they have a good deal, but often they don't. I am not being a douche here, but from my experience, people that have not wholesaled before make the following mistakes

ARV = 300K   Reality: ARV = 240K

COR = $15K  Reality: COR = $97,354.93

Holding Costs = $200    Reality: Holding Cost = $1200.-/month

etc. etc.

So, if you DO have a good deal, you awesomeness!! Good on you! You can find buyers here on BP, or connected investors, craigslist, REI meetings.

Usually when you have a good deal, buyers find you!

Barry Pekin · Answer

@Nathan Killebrew,

Buyers are SOOOO much easier to find than sellers.  Some people will say not to bother looking for buyers until you have a property, but I really disagree with that.  Work hard to find your buyers.  But you probably need to spend 10% of your effort finding buyers, and 90% finding sellers.

My first go-to for finding buyers is to attend local REI meetups.  Landlords and Rehabbers are always in attendance and always looking for properties.

Good luck!

Nathan Killebrew · Answer

@Barry Pekin

Thank you, I spent most of my education period working to find motivated sellers. I have a solid process for doing that. (though I will look to scale to a more sophisticated deal flow machine when I get a solid list of buyers)

I got deals under contract and was hit with the "oh crap I do not know how to find buyers" reaction. Now I am just working on building a target list of buyers and only making offers on deals right in their wheelhouse. I will attend the next meetup. I just struggle with my target market being two hours away. However, those are just sacrifices I will have to make.