Buying from wholesaler vs finding deal

4 Replies

Hello BP family!! This is my very first post on the website (Just became pro) but have been listening to the podcast and following along in the forums for a while. My question is for a newbie like myself what are your thoughts on buying my first investment from a wholesaler vs finding a deal through some form of marketing? 

My thought is to allow the wholesaler to find the deal because they are the expert in marketing and negotiation, at least an expert compared to me at this point. In doing so I would be able to go with my strength which is analyzing deals as I have a data analysis background. Please let me know your thoughts!

Hi @Paul Burns and welcome to the BiggerPockets PROs!

I completely agree with you that your time should be spent analyzing as many deals as you can get your hands on. For now, let the wholesalers do the marketing work for you!

That said, you should aim to receive deals from a large roster of wholesalers: The more the merrier! Many will likely have crappy deals, but it's hard to recognize a great deal unless you've waded through enough of the crap.

Get really good at separating the wheat from the chaff really fast and you'll be a much better investor for it.

@Paul Burns I would suggest that you start going to REIAs, network with wholesalers, tell them what your buying criteria is and ask to be on their mailing lists. Start analyzing the deals they start sending you. Double check the ARV they give you for the property...a lot of times its a bit inflated. There are some bigger wholesaler companies here (I wont mention names...their reputations speak for themselves and not in a good way) that will over estimate the ARV and under estimate the rehab. Make sure you run your own numbers and do your own due diligence. Once you get good at analyzing deals you will be able to determine which properties are worth persuing and which ones arent worth your time