Wholesaling

9 Replies

When starting out Wholesaling is it best to begin with finding motivated buyers or motivated sellers?  I know the two go hand and hand but i am stuck with what needs to be done first and kind of scared to proceed.  Help or advice anyone.  Thanks.

Stephanie,

The two do go hand in hand, but I would definitely recommend finding motivated sellers before finding motivated buyers. It would be hard to strike a deal with a motivated buyer if you did not have any properties to sell them. So although it is good to have a list of motivated buyers on hand to make a quick flip, I would focus on finding the good deals with motivated sellers first. Hope this helps!

Rob

@Stephanie Watkins  

I agree with @Robert Laird. Especially in this market, it is much more difficult to find good wholesale deal than it is to find a buyer. If it is a good deal, you should be able to move it quickly if inventory is as low in your area as it is in Cincinnati. There is always the option of doing a JV with another wholesaler you bring a good deal and another wholesaler has a cash buyer.

I keep reading that wholesalers who have cash buyers are "always available".... where? I need one. I ha e a deal that I need a jv partner on in Far northern Illinois. Not Cook Could try. Let me know if you have any ideas.

@Stephanie Watkins  Find your motivated sellers first. Get a good deal under contract and focus on marketing, then your cash buyers will come to you.  As long as you have good deals and market them properly you will do well! Good Luck!

Must be my contrary day :-). I would absolutely line up buyers first. You need one wholesaler or turnkey guy or active investor first then go and find what they will buy. It is WAY less stressful than finding a deal and not knowing what to do with it.

The real power in this if you are a newbie is you sound like you know what you are talking about because you can give your buyers criteria to all and sundry. For example when we started buying for a hedge fund we could ring realtors or other wholesalers and say " We need all brick 3 bed 1.5 bath houses in the following zips any condition".

FIND your buyers then getting the deals is easy and you'll sleep better at night!

Thanks everyone for the advise. I have a few potential buyers that I met in a Real Estate Meetup Club so I think i need to focus on getting some good deals under contract at this point so I will have something to offer. During all of this, I will start to speak with some investors and see what they are actually looking for. Thanks!

Originally posted by @Stephanie Watkins :

When starting out Wholesaling is it best to begin with finding motivated buyers or motivated sellers?  I know the two go hand and hand but i am stuck with what needs to be done first and kind of scared to proceed.  Help or advice anyone.  Thanks.

Here, this was posted within hours of your post:

http://www.biggerpockets.com/forums/93/topics/156326-wholesaling---finding-buyers-before-finding-sellers

You'll be able to post better questions if you do some searching on your topic and see if your question has been answered, then you can be more specific getting better information. :) 

I would focus on both.  I made this mistake early on when I would find deals and not have a buyer lined up.  I would advertise for buyers while you are looking for deals.  Use classified advertising on sites like craigslist.  Develop a list that you can email and call when you get a deal.https://danielhedges3636.wordpress.com/

It's not so much what market aspect you begin with as much as it is the type of property, the circumstances that exist before you begin your approach.

Search the thread "Opposing opinions on wholesaling" it will be clearer. :)

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