How to work with wholesalers

Question

Hello everyone,

I know this question may be very basic, but I'm just starting out into the real estate investment. I'm very interested in acquiring my first rental property and apply the brrrr method. My understanding is that I'll need to work with a wholesaler to find the property, but I don't know how to find a nice and friendly one. Also, what information I need to provide to him/she before starting? Help please.

I really appreciate any guidance.Thank you so much.

Nick C. · Answer

if you’re going to buy from a wholesaler volume is the way to go. Talk to as many as possibly. Nice and friendly or mean and angry, it doesn’t really matter. 9 out of 10 that you speak to will never get a deal, and the ones that do- 9 out of 10 of them are overpriced. So the more deals you’re looking at, the better chance you have of finding something that works.

Jason D. · Answer

@Viviana Ramirez you dont NEED to work with a wholesaler, they are simply another resource that you can use.

Don't worry about if they're nice and friendly, worry about the deals they have.

Local REI meetups are a place to start networking. People go there to pitch deals so that could be a way to get in front of a few and see what type of deals are around.

Kent Nielson · Answer

Hey @Viviana Ramirez

@Jason D. gave you very good advice. There are TONS of ways to find deals besides wholesalers. I've found the more I learn, it helps me decide which direction to go to find deals, as well as what kind of deals. @Arlan Potter had some good points too. You are on the right track about working around nice and friendly people though. Some people are out there that genuinely want to help, and others that don't understand where you are coming from and just add stress. Find the good ones, and ignore the bad ones.

I don't know about Edmonds, but there aren't many face to face meetings where I'm at. I can wait a week or two to meet other investors to learn from, but then I wasted two weeks that I could have been learning by reading, listening, watching, etc. Dive into @BiggerPockets .com  and learn all you can in between these meetups. Good luck!

Viviana Ramirez · Answer

Thanks @Jason D. I'll do that, have my second REI meetup next Thursday.

Jason M McNamara · Answer

@Viviana Ramirez - it’s a great question. To everyone else’s point, wholesalers provide you with another “pipeline” of potential deals.

Wholesalers are out there finding deals, too. Instead of renting, flipping, etc., they sell that property to a buyer (in this example, you). The transactions have to move quickly and you need proof of funds. For them providing you a deal, they take a commission off of the transaction.

To the other comments, network with a few and get on their mailing lists so you can see the kinds of deals out there.

Viviana Ramirez · Answer

@Arlan Potter, thank you so much for your response. I leave in Seattle area and the kind of deals I can afford don't match the prices here. But you are totally right I should move 4-5hours and see what is out there or do a long-distance investment.

Arlan Potter · Answer

@Viviana Ramirez

Why would you want to work with wholesalers? Find your own deal. If you work with a wholesaler, then you will pay more than you have to. You will pay what the property is worth plus a commission to the wholesaler. Too much.

How to work with wholesalers

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