I have deals, no buyers, just tire kickers! Am I alone?

18 Replies

Good Morning -

I am ranting this morning about my so-called cash buyers list. I meet these wonderful people at investor meetings, or they call me from my Craigslist ads. I find properties they want and negotiate the price just right, then they disappear!!!!

I used to think I didn't price my deals right but my mentor says my deals are priced just right so what exactly am I doing wrong?

I remember my FIRST deal. I got a house worth 90k for 25k, needing no repairs. It took nearly a month to find a buyer, and at the time, I advertised the home at a mere 36k!!! The home was in a desirable neighborhood (one where most investors can't find property unless they are referred), brick, and very well kept.

It's either my market or my marketing...I am guessing. Or maybe this is how a new investor is hazed into the business. Insight?

If you've got deals and no buyers... you don't have deals. I got a contract accepted yesterday. I sent an email out at 8:45PM to 2 people. By 8:47PM the house was sold for a $13,000 wholesale fee. He didn't have time to go see the house. Based on numbers and my reputation, he knew it was a deal that worked for him.

My suggestion, make sure your numbers are right. If they are, with every deal you close, your reputation gets better and better. Eventually, you can send an email and make $13,000 in 2 minutes.

@K. Michelle Hill

Most successful wholesalers I have met typically have no more than a few buyers that buy everything from them. Figure out the big buyers at the foreclosure auctions and the high volume flippers in your area. These people are probably not the ones responding to your craigslist ads. You need to sell your deal to the people working on the thinnest margins. Listen to @Tim Gordon podcast it is full of great info on wholesaling.

Originally posted by @K. Michelle Hill:
Good Morning -

I am ranting this morning about my so-called cash buyers list. I meet these wonderful people at investor meetings, or they call me from my Craigslist ads. I find properties they want and negotiate the price just right, then they disappear!!!!

I used to think I didn't price my deals right but my mentor says my deals are priced just right so what exactly am I doing wrong?

I remember my FIRST deal. I got a house worth 90k for 25k, needing no repairs. It took nearly a month to find a buyer, and at the time, I advertised the home at a mere 36k!!! The home was in a desirable neighborhood (one where most investors can't find property unless they are referred), brick, and very well kept.

It's either my market or my marketing...I am guessing. Or maybe this is how a new investor is hazed into the business. Insight?

There's no hazing going on IMO. Having a deal that isn't exposed properly to the market won't bring you offers. I think buyers lists are overrated. You're probably getting a lot of interest from newbies and wannabe rehabbers. Once you know a few experienced buyers that perform, if they don't want it, they will often know someone who does. I also think craigslist is overrated as a selling tool for real estate.

The MLS is still the best way to expose the property to the greatest pool of buyers. If I had a contract for $25K on a $90K house, I would close on it! Lenders where I am would be all over that and would lend 100%. Then I'd clean it up and list it on the MLS. If you've got a rent ready house needing no repairs, that means you have a retail ready house. Owner occupant buyers getting a home loan pay the most. OO buyers getting a loan use buyer's agents. Buyers agents use the MLS. But your numbers have to be right, because the lender's appraisal makes or breaks a retail purchase. So you can't throw around a $90K value if there aren't lots of solid comps to back it up.

You have either no deals or no buyers. Have these deals eventually been sold by others to others? Are your buyers really ever buying anything?

Originally posted by @Mike S. :
@K. Michelle Hill

Most successful wholesalers I have met typically have no more than a few buyers that buy everything from them. Figure out the big buyers at the foreclosure auctions and the high volume flippers in your area. These people are probably not the ones responding to your craigslist ads. You need to sell your deal to the people working on the thinnest margins. Listen to @Tim Gordon podcast it is full of great info on wholesaling.

I had two main buyers for several years who bought pretty much everything from me until I figured out I was underselling. The ability and capital to close on properties changed everything.

Originally posted by @Jon A. :
You have either no deals or no buyers. Have these deals eventually been sold by others to others? Are your buyers really ever buying anything?

These are good questions. Track the ones you can't find buyers for or that you pass on. This is good practice for learning your market. You won't know their rehab numbers, but it's good to see the ARVs actually end up at.

Also it can be helpful to study the data to see who is really buying.

I had two different wholesalers bring me the same REO last year that was $98K purchase, $200K ARV. Property was in OK condition and would sell retail with a minimal rehab, but I could find no comps to support a rehabbed property at $200K and I didn't want to deal with it for less (and I hate the area, which was probably the real problem). I have no idea if either wholesaler ever found the end buyer. The bank finally sold it in Dec. for $95K. The rehabber sold it last week, with a minimal rehab for $182K. There were plenty of comps to support that sale. Wish I had been less conservative on that one!

Thanks everyone for the insight. I will take the blame for lack of marketing and adjust so my deals aren't taking forever to sell.

I also am fairly new to the wholesaling life. Postlets seems to be recommended by other wholesalers. I have yet to get a contract and help my first seller find a buyer. Good luck in your future deals!

Originally posted by @Gary Mariencheck :
I also am fairly new to the wholesaling life. Postlets seems to be recommended by other wholesalers. I have yet to get a contract and help my first seller find a buyer. Good luck in your future deals!

Gary, there are deals waiting on you!!! Get busy! I wish you much success in the future and pay attention to everyone's newbie mistakes so you don't repeat them!!! :-)

Originally posted by Kristine Marie Poe:
Originally posted by @Mike S. :
@K. Michelle Hill
Most successful wholesalers I have met typically have no more than a few buyers that buy everything from them. Figure out the big buyers at the foreclosure auctions and the high volume flippers in your area. These people are probably not the ones responding to your craigslist ads. You need to sell your deal to the people working on the thinnest margins. Listen to @Tim Gordon podcast it is full of great info on wholesaling.

I had two main buyers for several years who bought pretty much everything from me until I figured out I was underselling. The ability and capital to close on properties changed everything.

Wow! Maybe I'll be blessed with that kind of buyer.

Does your marketing right now consist solely of Craigslist and REI meetings? You want to have as much market penetration as possible and that means you need to be putting time and money into many different marketing outlets.

@Gary Mariencheck mentioned Postlets which is a free product I've used before with some success. It definitely helps more your Craigslist ads more appealing.

Posting on the MLS is hugely important as well. Do you have a website that you drive traffic to in the hopes of promoting your services and ultimately moving property? What about social media? Do you have a presence? What content are you putting out that would be useful to investors and potential clients? Most importantly, try not to be short-sighted with your marketing efforts. Many companies take months or years to build a following and develop a buyer pipeline.

@Account Closed How would you recommend tracking these deals that you can't sell? In other words, where do you get all the details from? Sorry, newb here...Thanks!

Originally posted by @Josh Sexton :
Does your marketing right now consist solely of Craigslist and REI meetings? You want to have as much market penetration as possible and that means you need to be putting time and money into many different marketing outlets.

@Gary Mariencheck mentioned Postlets which is a free product I've used before with some success. It definitely helps more your Craigslist ads more appealing.

Posting on the MLS is hugely important as well. Do you have a website that you drive traffic to in the hopes of promoting your services and ultimately moving property? What about social media? Do you have a presence? What content are you putting out that would be useful to investors and potential clients? Most importantly, try not to be short-sighted with your marketing efforts. Many companies take months or years to build a following and develop a buyer pipeline.

Lots of great advice. I really appreciate you!

Originally posted by @Gary Mariencheck :
I also am fairly new to the wholesaling life. Postlets seems to be recommended by other wholesalers. I have yet to get a contract and help my first seller find a buyer. Good luck in your future deals!

If you have to use postlets to sell your 'deals,' not to repeat myself, but you don't have deals. Find the players in the market and only deal with them. Your life will be much more enjoyable and your bank account much healthier.

Originally posted by @Jared Christian :
@K. Marie Poe How would you recommend tracking these deals that you can't sell? In other words, where do you get all the details from? Sorry, newb here...Thanks!

The recorder index is online where I am for most counties. And I have title company accounts and other paid data subscriptions that allow me to look at the actual documents. In some CA counties the index includes the transfer tax amount, which is an indication of sale price.

If you have access to the MLS or an agent to help you, you can find a lot of sales data there.

Is your "wholesale fee" fee to high for a newbie? For nothing other than "finding the deal" you asked for 12% of the deal. I don't know the wholesale field but that seems very high!

Zillow usually tracks a lot of that data easily too...often even has a link to the county website where you can find the "hard" data.

Originally posted by Elizabeth Colegrove:
Is your "wholesale fee" fee to high for a newbie? For nothing other than "finding the deal" you asked for 12% of the deal. I don't know the wholesale field but that seems very high!

In active markets, a wholesale fee at any price is not a deal breaker for experienced buyers. I've sold at 100% markup many times. My profit is irrelevant to anyone who wants it at the price I'm selling it for. And I never ever called my profit a "fee". Where a "fee" becomes a problem is with inexperienced investor buyers in the market or buyers who don't have cash. Newbie rehabbers and landlords trying to line up financing are often already strapped for the down. They often don't know that conventional lenders have issues with the assignments or double closes and they often don't have cash to pay the wholesaler.

If the OP advertises a property at $36K, she either has buyers at that price or she doesn't, regardless of whether she is buying it for $10K or $20K or $30K.

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