Effectively using wholesalers

[David Karnes]

I am a new investor. In setting things up before my first purchase I am seeing lots of wholesaler websites for my area (Chattanooga) but all of them require a subscription for any meaningful leads or information. Is this a typical route to go? What is the most effective use of wholesalers. From the few houses I have looked at provided by wholesalers it seems the trend is underestimate the rehab and overestimate the ARV.

[John Britt]

@David Karnes I have heard that as well from other investors about our market with wholesalers.  I have stop giving repair estimates because I realize that ever investor is different and the repairs they would or would not make will be different as well.  I would suggest signing up with as many wholesalers as you find.  Yes most of them that have websites set up will ask for  the same information, but understand are building a buyers list and if  they care they will want to do multiple deals with every investor just one deal.  And they would try to be open with you on what they know and don't know about the deal.  As for me I am a wholesaler, but I am looking to transition to do a couple of fix and flips this year.  The main thing is when you work with a wholesaler is to ask a lot of questions, and to let them know what your end goal is, buy hold or fix and flip.

[Mallie Messri]

Hey @David Karnes, congrats on beginning your investing journey in Chattanooga. If you're looking for deals your best best would be not only to look for wholesalers but to also work on building relationships with other professionals in the industry. Property Managers, Realtors, Lenders, Contractors, Builders, and other Investors can pass you valuable leads as well. It would do you no harm to sign up for newsletters or email lists, you may even consider creating a separate email just for that as you'll likely get daily emails. It's your job to sift through the all the emails of deals until you find the best deal that makes the most sense. In my opinion it's every investors sole responsibility to determine ARV and repairs on the property in question for themselves. The wholesaler or person who's passing on the lead is probably making an estimate based on their best knowledge but no one will know what your contractor would charge and what the plans for the property are better than you. Eventually after working in the market awhile you should be able to identify your most valuable team players that are going to provide you accurate and crucial information. I know a few people who have been in the market for a while and who I would pretty much call experts on pricing and other important buying factors, would be happy to make a connection! In the end of the day it only helps you to build as many relationships that you can as a new investor and you can fine tune those later on down the road, your goal is to look at as many deals as possible til you find the right buy!