All Forum Posts by: John K.

@Drex Tanner

It's a catch 22 really, a good wholesaler is not going to be easy to find, because they are not looking for buyers. A good wholesaler has an extensive buyers list that probably buys everything they send out, so there is no need to keep collecting emails. 

As a wholesaler, I know that when I get a property under contract, I know exactly who to pitch it too, for the sale. I also, know that it will be closed on, if that investor likes it. It's really tough for me to accept a new buyer in, unless it's a unique property type or my goto investor(s) has enough projects going. I know that you have to be given the chance, but it is something that a wholesaler has to consider. 


With that being said, here are some quick guidelines to go by when you are dealing with a wholesaler.

1. Price - The price is the first test. If their price is well below market rate, that is an excellent starting point. It likely means you are dealing with a real wholesaler, not someone trying to pass off MLS "quality" deals.
2. Repairs - As stated, a wholesaler should provide you with detailed information about the repairs, not just a number. It takes no effort to put a number on an estimate sheet. The major repairs, should come with written estimates from at least 2 companies. 

3. Pictures - There should be an extensive gallery of photos, in HD, and not taken on a cell phone. The pictures should show every flaw the home has, regardless if it's a small problem or not. For example: My properties come with no less than 35 pictures. No joke, I show even a thumbtack in the wall.

4. Title - The title should be open and cleared for closing. There is nothing more annoying that an investor doing all of their due diligence, just to find out the title is clouded and possibly can't or won't close. 

5. Contract - There should be no one in between the seller of the property and the wholesaler. This avoids the daisy chain and you paying 5 assignment fees. The daisy chain approach almost always ends up in a tremendous amount of your time being wasted, and the deal falling apart. 

6. ARV - You should receive a full CMA report, about that property.

7. Targeted - They should only send you deals that meet your objectives, and not just add your email to the other 5,000 they have. 

8. Professionalism - Obviously, all monies get handed off to the title company or attorney that is closing the deal. 

9. Communication - They should have very intimate information about the home. This is really good way to find out if they are just in the chain, or that they have actually visited the property. 

10. Pressure - You should never feel like you have to do the deal now. This approach should raise flags. Maybe the contract is close to expiring? Maybe they don't have control of the contract? I will add that there is an expectation that you can analyze your deals, within a reasonable amount of time, but you should never fill like you have to sign a contract tomorrow. 

I would suggest you visit your local meetings, especially of the membership variety. These types of organizations tend to bring in those that understand, that you have to spend it to make it. A large wholesaling company would definitely spend the money to attend and possibly pitch some deals. 

My last piece of advice. Avoid the email collectors. This will almost likely end in 2 ways. You get sent deals that are 30% over the real ARV, or you just became the newest member of their spam emails. It's important to remember that 75% of a wholesalers time and money, is spent on marketing for properties, not buyers. The rest of that time is spent following leads, visiting properties, and getting all the paperwork completed for the deals, already in the pipeline. If all you are seeing from them is "great deals can be found here, sign up now", they don't have deals. If they did, they would not have time to blast social media with these ads.

@Bradley Post

I hear you. I promise you though, the frustration you feel now will be magnified 10x, if you work hard to get a house under contract, and it does not sell. The patience you show to get started, will pay off 10x for you in the long run, I promise. 

What you might do to help earn some money in this and get a cheap education, is find a successful wholesaler in your area and see if they would mentor you in exchange for bringing them solid leads and a small finders fee. You will get valuable information and see how this business works from start to finish. 

@Bradley Post

You have to honestly ask yourself, What would you bring to a partnership, currently? A partnership is usually made up of 2 or more people, that bring their set of skills or money. They compliment each other with those skills, so each partner is bringing something of value to the agreement. 

I would strongly suggest that you don't start asking for investor money, unless you have something of real value to offer. Do you have extensive construction experience? Do you have excellent negotiation skills to get properties well below market? Do you understand how to properly evaluate a property, to determine all the costs it will need to renovate?

When you bring outside money in you have a huge responsibility to that investor, both ethically and legally. If you are not experienced and you don't have the knowledge to properly take a house from start to finish, you could find yourself in a lawsuit, or worse. 

Again, I would strongly suggest you slow down and learn what you need to know. The likelihood that you will succeed on your very 1st deal, is very small if you don't take the time to learn. Take that energy you have to get started, and use it to search this forum like crazy. 

Remember, knowledge equals power. 

@Bradley Post

Your passion to hit the ground running, is admirable and I applaud that enthusiasm.

With that being said, sometimes you have to slow down to move fast.

To be successful in wholesaling, you need to establish your team.

1. Contractors to help you with repair estimates, if you are not comfortable evaluating this

2. Marketing - Are you going to hire this out or do it yourself? A successful wholesaler spends 75% of their time and money, marketing. 

3. Buyers - You can't just ask for email addresses. These are not necessarily buyers, thus you have no one to actually buy your deal. Spend time finding actual investors to shop your properties too, so you can close 99% of your deals, if not 100%. You will be less frustrated and even more motivated, if you consistently have buyers. 

4. Title companies - They are a dime a dozen, but you need to find those title companies that move quick and are really good at solving problems. You will be dealing with all sorts of properties, so title issues are not all that surprising when they show up. 

5. ARVs - Do you have a reliable source to get this data? Don't make the critical mistake of fabricating these numbers, you won't be taken seriously and you will become frustrated, quickly. 

6. Attorney - You will definitely want to consult with an attorney to fully understand how a wholesale business needs to operate in your state. You don't want to get in the habit of just signing contracts, without fully understanding what the consequences are to that action.  

7. Value - Do you understand what a real deal looks like? To get to this, you have to have real buyers, so you know exactly what they are looking for. This means you are bringing a real value to an investor, and not just wasting their time. Show them that you put real effort into looking for those deals, that truly fit their goals, they in turn will reward you with their time and money.

8. Sellers - How are you at overcoming objections, right now? In this business, you will hear a 1000 reasons why they won't sell, it's your job to overcome those objections. You have to have a sensible solution to a multitude of problems that you will be exposed to. The best closers have those solutions, without ever getting off the phone or leaving the dining room table.

I don't want to discourage you, but I also don't want you to become discouraged. If you slow down right now and take the time to learn the basics, you will have better success from the onset. 

I would not suggest that you hire a mentor. There are plenty of people on here more than willing to help you, if you show that you have put some effort into learning on your own, first. 

Visit https://bellcad.org/

1. Scroll down to the bottom of the page and click on "Data Portal"

2. Expand the "Certified Data" tab and download the file in there. This file contains every property in Bell County and its owner(s). It is a pretty large file. 

3. Sort the file alphabetically by name, to identify those companies/names that have more than one property. These are investors. 

Good Luck

@Clarence Harris

I understand your concern over constantly paying for this information, as it will get expensive. However, in the long run it would be very beneficial for you to establish a good working relationship with contractors, until you get very comfortable looking at properties on your own. With that being said..

1. Flooring -  Visit your local HD or Lowe's and get an idea of their installation charges for whatever type of flooring you want. 

2. Paint - Call local painting companies and ask them for their per sq. ft price. Make sure you get the price to not only paint, but to repair and remove/apply texture. 

3. Roofing - Call and get them to give you their per sq ft price, including any decking. If they insist on saying, "It all depends on the house", then explain that you are simply looking at a house, not actually an owner in need. If they still insist, then let them waste their time to look at the house and give you an estimate.

4. Plumbing - Just get a general idea on the going hourly/fixed rate for companies in your area. You can start with asking how much they charge to replace water heaters, for example. 

5. Foundations - Get estimates if you have concerns in this area. There should be many companies that will give free estimates

That should help you narrow in on the charges that your area is currently seeing. It's not going to lock in a number, but it should get you within 20% of the actual costs. Anytime you establish a renovation budget, you should always add 20-25% over that, for those "uh-oh" moments. 

Hope that helps.

@Mark Anthony Alvear Jr

The most efficient way would be to lookup property owners in Bell county and see who the investors are. Then reach out to them and start a conversation. 

Once you get a deal under contract, if it is a good deal, the buyers will find you. 

I would always suggest you attend REI meetings, everywhere. You never know who you will meet at those, and how they could be very helpful to your goals. It is never a bad idea to network.

@Derrick Alexis

You might try finding an agent willing to provide you comps for either a small fee, or work out an agreement with them. If you come across a lead that you just can't make work on a wholesale level, give them the lead to sell it retail. Don't abuse the relationship of course, but there are agents out there that are starving for leads and would appreciate them, from anyone. 

@Sean Tippens

As @Lydia R. said, don't waste your money on these courses. It's not reasonable to expect you can learn all you need to know, in 90 days. The business of Real Estate is complex, with tons of moving parts. When you bring wholesaling into the mix, you add to that complexity. You need to know with deep knowledge the following:

*Establishing ARVs

* Estimating Repairs with a reasonable level of accuracy

* Finding and vetting buyers, so you don't hang a seller out

* Learning to efficiently market for properties and how to close those leads

* Establishing a good reputation with buyers, so your business can scale. 

to name a few...

If you put an effort in and ask intelligent questions, you will find more than enough people willing to answer your questions, and they won't send you an invoice for it.

Don't come in asking "teach me everything you know", without showing you have put some effort into it, initially. 

Definitely.