BiggerPockets

Nick,

I work for a wholesale investment firm in Memphis. Investors buy from us b/c they do not have access to the deals like we do and we also have a turn key system in place ( contractors, management companies, closing attorneys ). Most regular investors do not have a team in place. The main thing to think about is that most investors still have full time day jobs that make it difficult to do everything like our company can do. Hope this answered your question.

Basic wholesaling (without the words "turnkey" and "teams" ) is a very valuable component to other investors.

While I do offer turnkey / teams and all that other crap I do also just plain old wholesaing - and those who buy from me are:

- new investors not sure what makes a good deal or where to find them
- people who can't buy at the prices I buy at - so even when i mark them up for my profit it is cheaper then they could have gotten it on their own
- work full time and don't have the time or desire
- are out of state investors but have local teams they already trust
- are other wholesalers who need property for a client - got a call today asking for 30 properties from another wholesaler who has a client wanting 30 properties - they didn't have them - I do
- investors who just didn't see the deal - there are so many deals out there right now and everyone has their way of finding deals - so i see deals that others don't see and vice-versa so if I find one that meets another investors criteria - cool

and on and on and on.....

Thanks Scott. I'm still learning all this. I got the impression on another thread that wholesaling is something mainly done by real estate "investors" that have no cash on hand.

So much to learn...so much to learn. I'm startin to get a headache from all this redaing, break time for the night.

Wow. Ok, thanks for the replies guys. I wonder how easy it is to get 100% financing for rental properties these days. I've got 0 debt (except mortgage) 780+ credit score and 120k+ income with wife. but no cash.

100% financing is impossible, even for owner occupied properties. The best you can manage on OO is 3.5% or whatever it is FHA loans allow. Investment properties are going to be 20-25% down.

Look for creative deals like lease/options, owner financing and subject to's.

But, owning rental property without cash on hand is a reciepe for disaster. We've had a number of posts to the effect "help! My tenant moved out suddenly and my payment is due and I can't make it, what do I do". Or "Its January and the furnace has croaked and I can't afford $2000 for a new one". You must have enough reserve to cover these sporadic, but totally expected events.

Would someone please explain how wholesaling works on the buying end? I would think that most deals are going to be those that are with negative equity. It is unlikely any sane seller would walk away from equity - at least not in my market. That being said, I would think you're then limited to doing short sale/REO flips. I must be missing something here.
 
 

Tim,

Without writing a book... the only deals that any wholesaler worth their salt would be assigning are deals that came from very motivated sellers.

Every wholesaler knows that if the deal is marginal and they attempt to assign it to an experienced investor... they more then likely will end up buying the same crappy deal they were trying to sell.

Motivated sellers = great deals that can be assigned with significant paydays for all involved.

Pete

Wholesaling works. If it didn't why would so many people be doing it?