Wholesaling in a Saturated Market

9 Replies

Hi.

I am from a rural area in northern MO. It has a small wholesaling market and a lot of investment potential with growing communities on a busy interstate.

Someone has suggested that I start wholesaling in the St Louis area mostly virtually.

I am open to that as there most times is a higher market value and more money to be made.

My concern is that St. Louis is saturated with wholesalers. 

I see a plus being that there are definitely more cash investors in the city, but what about the competition? 

How do you stand out in an already saturated market?

Okay, that's really all I needed to hear to be convinced. Thank you. 

@Shannon Guertzgen That's a great question but don't let fear run your life! You honestly have nothing to worry about. The sad thing is that it is so easy to stand out in today's market. Just be reliable and honest. That sounds so simple and silly but trust me it is so true. If you answer your phone, show up on time, provide honest and actual numbers, you will have so much business you won't know what to do. I'm just getting into the wholesaling market and I am looking at these lazy guys half assing things that are doing great, and I can just imagine once I start how much I will make. The little things matter. It all boils down to just doing what's right and treating others how you want to be treated. Just get started and start marketing and finding motivated sellers! Good luck!

@Michael Guzik I didn' want to come out and say so, but I agree with you a lot of people are really over doing their wholesale profits and not providing quality customer service. I'm definitely learning by researching what other potential wholesalers are saying and doing.

I think they forget just like any other business that you have to have your customer's needs as a priority. If you focus on others needs instead of how much money you can make out of people in any business it works much better.

Being a good wholesaler is like being a good PM. The expectations are low so if you provide even a small amount of transparency, communication and value you’ll do well

I don't see the challenge of a saturated market as how to find buyers... I see the challenge as how do you find houses to wholesaler. If there are 200 other wholesalers and wholesale newbies all sending the same letters, same bandit signs, same emails, same cold calls, same door knocking... how do you plan to stand out from them? In my opinion selling the deal off is easy (if you actually have a deal and not a typical inflated ARV, and useless rehab budget) as there are TONs of cash buyers out there (I am on wholesale lists with over 150 other "investors", and I imagine we are the second string, getting the duds their go to investors don't buy)

Another thing that annoys me is wholesalers who dont do their diligence on a property, or poorly represent the facts on a deal.  If I'm going to purchase a property from wholesaler and a wholesaler is going to make a really good profit, I expect them to EARN it through bringing me a quality deal at a great price, but with accurate facts.  Else, I am more inclined to cut my price (i.e. cutting into their profits).  

I'm venturing out into wholesaling and as you folks mention, looking to stand out from some (not all) wholesalers who are not really worth their weight.  

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