Wholesaler · Hattiesburg, MS · Member since 2011 · 21 posts · 0 votes
Ok,so tons of us are looking to make a little coin with REI. So before I get out there and go "gung-ho" making offers and signing contracts, I'd like to know what the "real deal" investors/rehabbers look for when choosing to work with a wholesaler.
Thanks, Darren
It depends on the area of the country you live. There's no one size fits all markets. I think you want to know, and find lenders that KNOW the market you're in for starters. Southern California is still expensive, and the margins aren't the same as in other areas. I know others have said that about their states too.
A true wholesaler is one who can bring a rehabber a 'true' deal where the numbers work. Personally I want a deal where the price I pay equals 60% of the ARV minus the repairs.
That means the wholesaler has to have a realistic calculation for the ARV as well as the repairs.
It depends on the area of the country you live. There's no one size fits all markets. I think you want to know, and find lenders that KNOW the market you're in for starters. Southern California is still expensive, and the margins aren't the same as in other areas. I know others have said that about their states too.
The "Real Deal" that your speaking of is one that makes them $$$. Meaning true wholesale deals will find the investor for you as an wholesaler. You will just have to do your D.D.though. The more your prepared the better you will be.
In my area md the investors are looking forv70% ARV - repairs. then you have your fee in there as well.
Darren - Find and ask the rehabbers that you are going to work with. They will be the best people to ask since that's who you will be doing business with. Ask your favorite realtor to pull a report on properties that sold for cash. Take that report down to the county clerks office and see who bought those houses. That will tell you who the "real deal" investors are in your neck of the woods. Ask them what type of houses they like and where they like to buy them. I think ONE of the main things that rehabbers look for is a DEAl like Carl mentioned.
You know your a true wholesaler when you get repeat customers. I have a huge buyers list but I never get past the top 3. I have about 3-4 people who call me pretty frequently asking what I'm working on and if I have any deals.
"You can shear a sheep many times, but only skin him once."
-Amarillo Slim
There is enough money in real estate that you don't need to make it all on one deal. Give people a good deal and treat them like you would want to be treated and people will take you seriously. When someone sends me a couple bad deals I don't take them seriously any more.