All Forum Posts by: Doug Eric Gueirn

 Thanks! I have learned that the majority of the terrible wholesalers out there arent bad on purpose, they are bad because no one has taught them or enlightened them to how the process is supposed to work. They get all their misinformation from gurus promoting their classes and their click bait. So I do what I can to educate. Those who listen and make the necessary changes will go one to actually make some money in real estate. The ones who have no interest in learning how things really work will end up quitting as soon as things get hard. I remember what it was like to be new and have no clue what was going on. Thanks for the shout out! I appreciate it! 

There is definitely a flaw you might not be aware of. Let me first be clear on what you are proposing. You want to find retail properties before they become on market retail properties. Negotiate a retail purchase price minus a small $1,000-$10,000 fee and then enlist a real estate agent to bring a retail buyer and then collect your fee at closing. Do I have that right? The biggest flaw here is that these retail end buyers are getting bank loans. Banks do not pay wholesale fees. Ever. And there are a lot of moving pieces in a retail deal--lender ordered appraisal, buyer inspections, renegotiations etc that would really get in the way of your position. 

The reason wholesale deals work is because our end buyers are using cash or hard money to buy the properties. Hard money lenders dont care about paying a wholesale fee. There is no renegotiation of terms or the buyer coming back to ask the seller to make repairs. The value proposition wholesalers offer is that they have done the hard work so the end buyer can sit at their desk and cherry pick the deals that meet their criteria. Buyers dont have to do the marketing and the property walk throughs and the back and forth negotiations. Wholesalers do the hard, tedious work and buyers reap the benefits. And we get paid a fee as the result. What you are proposing is not feasible. And there is no value add. Who is really benefiting? Not the seller because they are losing money to pay you and the agent. No the buyer because they arent buying at a discount they are paying retail. Not the agent because they are doing the same amount of work for less money because you are in the middle. What you are describing just makes a retail deal unnecessarily complicated. And if your response to this is, well what if I just did this with off market distressed properties...well thats what wholesaling is. Except instead of finding your own end buyer, you are bringing in a real estate agent to find that end buyer instead. Which is possible, but again now you are either paying the agent out of your fee or the end buyer has to pay the agent which eats into their profit margin on the deal. Dont get me wrong, it is possible to work with agents on wholesale deals. I had a deal close recently where the agent actually responded to my marketing and said she had a client who would be interested. I made it clear any and all agent fees would need to be paid by the end buyer and the end buyer agreed. It was a win win for everyone. But the deal was off market, definitely not in a retail condition and the buyer was paying cash. 

So yes, agents and wholesalers CAN work together and have win-win outcomes. But not in the way you have outlined in your post. 

There are lots of options for finding buyers for deals. Here are some of my favorites

1. Facebook groups for investors and wholesalers in your area. Look specifically for groups that allow deal posting because not all of them allow this

2. Facebook marketplace

3. Local REIA meetings and real estate meetup groups

4. Foreclosure auctions. This is one of my favorite strategies. Everyone bidding on properties at the auction should be on your buyers list. You already know they're buying and they have the cash to close.

5. Listings in the area. Any time I have a property under contract I get on Zillow and look at flipped properties that are for sale or recently sold. I call the seller because they were the investor who rehabbed the house or the agent who represented the seller to find out if they want to buy more property in that same area. Same goes for rental properties. The owners of active rental listings are landlords who may be interested in acquiring another rental property in the same area.

6. Propstream--great tool for finding hedgefund buyers and large investment groups.

7. Hard money lenders. Another one of my favorite ways to find buyers! Hard money lenders have a database of investors they've loaned money to for real estate investments. They can push your deal out to their entire list. Why would they do this? Hard money lenders dont make money unless they give loans. Pushing out your deal directly benefits the lender because they make money if an investor decides to buy it.

8. Mid size and large property management companies. Same reasons as a hard money lender. They have a database of clients who own rental properties. If someone wants to buy another one the property management will most likely be the one to manage it. You can always count on someone to do something that directly benefits them.

This is by no means a comprehensive list but it should be enough to get you started. Hope this helps!