First time wholesaler: How many properties to look at? 14 posts by 10 users

Posted: 08/26/2008 at 03:18PM

The number of properties are not the issue. The correct "type" of property is what is important. One that will have equity in it, a distressed seller, a run down property, a vacant property, etc.

Robin

Posted: 08/27/2008 at 01:36PM

You should take it on if it's a good deal. It should be all about the numbers. You can't look at your desk, with 100 possible deals, and say to yourself "Where is that ONE in here?"

Maybe you have 100 out of 100 great deals. Maybe you have zero. If you have a property with a list price of $49k and a comp of $179k, you're going to need to figure out an amount for the rehab work. Is a total renovation for it $50k? Or is it $90k? Have you been in touch with a contractor? Have you researched the comps? Are they from 18 months ago? Are they from houses less than 10 years old compared to your property that is 100 years old?

Posted: 09/03/2008 at 07:04AM

You see, that's where my problem comes in. I'm so new I don't know what a good deal looks like. Is it purely numbers, no matter what the property looks like? If so and the property has been on the market for months should that be an indicator to me that the property is no good and no one wants it and or its not worth the investment to repair/rehab it?

Posted: 09/11/2008 at 12:13PM

Uhhhh...

I would say you need to get your start in the wholesaling game a little smarter.

Don't waste your time making a million offers if you don't already have buyers lined up to take the offers if you get them.

Many "guru's" have somehow forgot that the best deal in the world on a house won't do you any good if you don't have a buyer.

You need to find buyers
Find what buyers are looking for
Find homes that meet those buyers needs
Put home under contract with escape clause
Get buyer through the home
If buyer like then assign, or double close
If buyer doesn't like then use your escape clause and move on.

That's wholesaling in a nutshell.

You could waste your entire investment life chasing deals if you don't know what your looking for...do you follow?

Good luck, it sounds like your eager to get going.

Posted: 09/11/2008 at 07:04PM

If a Realtor is showing you the property it isn't a deal. Two reasons, the Realtor would by it and if the Realtor is showing you then everyone knows about it and it's not a deal. 95% of the biz is finding the deal no one knows about.
If it was that easy everyone would be a wholesaler.
Only the smart and strong survive in this game.

Posted: 09/12/2008 at 09:37AM

I watch the local MLS daily and I can assure you that their are listed deals, however, they are not usually worthy of wholesaling but make good rehabs.

To the point,

Paul, the first and most important step in REI is knowing when you have found a deal. If you don't know how to spot opportunities then how can you find one or sell one to someone else. I highly recommend studying comparables(someone else stated that) along with construction costs.
If you know these two then you have stepped in the door and are then ready for the next step.

When wholesaling I would not look at something that didn't have a minimum 25% reduction, or built in equity. This should dwindle down those realtor deals pretty quick and allow you to get closer to actual deals.
The general 30% reduction from market value minus repairs minus wholesale fee is a great rule of thumb for a fast analysis of any deal.

For buyers, you need a list NOW, start building. A great place to find these is listed homes. Many of which have headings such as "completely remodeled, all new everything, etc, etc", between rehabbers and landlords you will build quite the list.

Best of luck to you, the road is long

Posted: 09/14/2008 at 07:34PM

Paul,
I agree with most of the replies in that you need more knowledge.

I use 2 website that provide excellent information regarding details of cities and properties. Check them out.
[link removed]
http://www.city-data.com
Much Success

Edited: 09/14/2008 at 08:59PM by Moderator