All Forum Posts by: Jim Pellerin

 @Karl Washington a lot of wholesalers say "if you find a good deal, it's easy to find a buyer". I prefer to find buyers first, for 2 reasons.

1. You are looking for properties that you know your buyers will want 

2. It's less stressful knowing you have buyers waiting for the deals you are looking for.

If you happen to find a deal that none of your buyers want then you could always joint ventuire with another wholesaler

so your first 2 activities should be 

1. build a list of buyers

2, build a list of disposition wholesalers

 @Justin RideoutDon't apologize for wholesaling because you don't have enough money to purchase. That's the right approach. Most people look at creative financing techniques that end up getting them overleveraged and they end up in a negative cashflow situation.

As far as finding comps to determine your ARV, you need to build a relationship with a local broker/agent who can help you out. Normally, I would recommend some tools but I don't think these tools have Canadian data in them. (fyi, I live in Ottawa and lived in Saint John for 2 years)

@Julie NorrisYes I have a suggestion. I sent you a message. 

@Julie Norris

 @Greg R. Agree 100%. Look what I wrote earlier in the thread.

@Michael Mackney I subsidized my properties for years and lost a lot of money. I had over 100 properties that on paper looked like they were cash-flowing but after maintenance and management were actually a negative return. And then the sub-prime crisis hit in 2008 - 2010 and the market fell out and any speculation I had on appreciation was done. I lost millions. 

This is why I don't advocate investing in single-family homes. Too much liability, especially if you are over-leveraged. My recommendation to everyone I coach now is to focus on short-term income generating strategies such as wholesaling and fix and flips so that you can raise enough funds to either invest in larger apartment buildings or start your own syndication with other investors. 

@Ryan Myers If you are interested in multi-family investing, then I wouldn't look at any of these.

I wouldn't say struggling. I have lots of good deals. And lots of buyers looking at them. Just making sure I manage everything so nothing falls thru the cracks. I had a good $300M+ deal fall out because the sellers broker misrepresented the property and got the buyer upset so he walked.

@Lorraine Gaudin

 That's correct. You're welcome.

@Mike Schorah

The general problem is the deal isn't good or good enough to attract any of your buyers.

1. The ARV is overestimated - This is very common when wholesalers present deals to buyers. Make sure you have at least 3 and maybe 5 strong comps that support your ARV.

2. The rehab costs are underestimated - This is also very common. Wholesalers tend to underestimate costs to make the deal look better than it is. Flippers will do their own calculations and are better at it than wholesalers, in most cases.

3. Price is too high - when putting a property under contract, you want to make sure you allow for all the cost items and a nice profit. A lot of times I see deals are way overpriced because the wholesaler didn't allow for carrying costs and acquisition and disposition costs. This can make up for as much as 15% of the ARV. And most flippers want to make at least 15% profit. And don't forget to factor in your wholesaling fee.