My business partner and I have been searching for our first deal using an agent and searching the MLS ourselves. We have had some luck finding leads and analyzed quite a few from afar, but want to maximize our efforts. Most of the houses we are finding on the MLS are priced too high for the numbers to work on a fix/flip. Are most investors using wholesalers to find off-market deals? We have done some searching ourselves and started sending out letters to generate leads, but we're curious if using a wholesaler would be a better option. We understand we are going to have to analyze quite a few properties before we land on one that will work, so we want to get our eyes on as many deals as possible.
@Jordan A., a legit full-time wholesaler with years of experience, will likely be far more resourceful to work with than trying to acquire deals off-market on your own. That said, when working with wholesalers, you better be ready to get aggressive if it is an actual deal. Don't be alarmed; many wholesalers will require zero-day due diligence, high non-refundable earnest money, and a quick closing using their preferred attorney. You will likely need to perform all your due diligence before going under contract. Good luck acquiring a wholesale deal if your contractor is lazy and lacks urgency. Hopefully, you already have a general sense of estimating repair costs and calculating ARV. I recommend attending your local investment meet-up to find the right wholesaler in your market. Ask for their track record and tell them you are a serious buyer who can close quickly and is not here to mess around. Give them your investment criteria and follow up with them religiously so you stay top of mind.
The most successful flippers are the ones who deeply understand their market. Try to research and get a sense of any new exciting development in the area, be it hospitals, parks/walkways, transportation, etc., which will drive value to the area.
Good luck!
@Jordan A. Given the current market conditions the only thing you can do is cast a bigger net. We have bought off the MLS, off market direct to seller, but haven't bought anything via wholesaler. MLS = most eyes on the property. Wholesaler = limited but more experienced eyes on the property. Off market = ideally only you or a couple other investors. The markets are so tight each approach (in that order) requires compounding levels of time and $$$. My wife and I are on the sidelines because we started a family. We know exactly how much time we have and it's not much.
I recently walked a distressed property being offered by a wholesaler. Curious because the location was good, on the same street as our rental, and we know the numbers. It was a complete disaster. They were asking $15k more than we paid for our rental we bought off the MLS. I guess I'm getting the wrong wholesaler emails.
@Jordan A. Given the current market conditions the only thing you can do is cast a bigger net. We have bought off the MLS, off market direct to seller, but haven't bought anything via wholesaler. MLS = most eyes on the property. Wholesaler = limited but more experienced eyes on the property. Off market = ideally only you or a couple other investors. The markets are so tight each approach (in that order) requires compounding levels of time and $$$. My wife and I are on the sidelines because we started a family. We know exactly how much time we have and it's not much.
I recently walked a distressed property being offered by a wholesaler. Curious because the location was good, on the same street as our rental, and we know the numbers. It was a complete disaster. They were asking $15k more than we paid for our rental we bought off the MLS. I guess I'm getting the wrong wholesaler emails.
Yeah I'm worried a wholesaler is going to end up sending me leads that will waste my time and inbox space because they still won't work. It's definitely tough sledding out there. We've come to the conclusion that we need more than 20% down on a rental to make it cash flow, so we've decided to flip a few to generate cash. Finding a flip that will work has its own challenges, but we will keep trying. Congrats on starting a family, that's an adventure in itself!
@Jordan A., a legit full-time wholesaler with years of experience, will likely be far more resourceful to work with than trying to acquire deals off-market on your own. That said, when working with wholesalers, you better be ready to get aggressive if it is an actual deal. Don't be alarmed; many wholesalers will require zero-day due diligence, high non-refundable earnest money, and a quick closing using their preferred attorney. You will likely need to perform all your due diligence before going under contract. Good luck acquiring a wholesale deal if your contractor is lazy and lacks urgency. Hopefully, you already have a general sense of estimating repair costs and calculating ARV. I recommend attending your local investment meet-up to find the right wholesaler in your market. Ask for their track record and tell them you are a serious buyer who can close quickly and is not here to mess around. Give them your investment criteria and follow up with them religiously so you stay top of mind.
The most successful flippers are the ones who deeply understand their market. Try to research and get a sense of any new exciting development in the area, be it hospitals, parks/walkways, transportation, etc., which will drive value to the area.
Good luck!
@Jordan A., a legit full-time wholesaler with years of experience, will likely be far more resourceful to work with than trying to acquire deals off-market on your own. That said, when working with wholesalers, you better be ready to get aggressive if it is an actual deal. Don't be alarmed; many wholesalers will require zero-day due diligence, high non-refundable earnest money, and a quick closing using their preferred attorney. You will likely need to perform all your due diligence before going under contract. Good luck acquiring a wholesale deal if your contractor is lazy and lacks urgency. Hopefully, you already have a general sense of estimating repair costs and calculating ARV. I recommend attending your local investment meet-up to find the right wholesaler in your market. Ask for their track record and tell them you are a serious buyer who can close quickly and is not here to mess around. Give them your investment criteria and follow up with them religiously so you stay top of mind.
The most successful flippers are the ones who deeply understand their market. Try to research and get a sense of any new exciting development in the area, be it hospitals, parks/walkways, transportation, etc., which will drive value to the area.
Good luck!
I have 0 experience with wholesalers, so that is all very good info to know. Thank you!
I am in the exact same position and currently trying to network in Washington state. My wife is also a new real estate agent and I have a couple of friends who are investors looking for more deals as well. Good luck on your search and your with your new family!
@Jordan A. That's a fact! Learning to parent is hard and equally stressful.
The wholesalers wasting time is standard practice. So many don't realize the scale necessary to remodel distressed property. We don't have the door count and huge reserves to make big whoopies. I have no desire to trap all our funds. Being a great Dad is more important.
When it makes sense to buy I'll probably look on the MLS first. Most sellers listing right now are motivated and/or rushed to sell the property. Nobody with quality RE wants to give up super low interest rates. In my experience that's all that matters.
My business partner and I have been searching for our first deal using an agent and searching the MLS ourselves. We have had some luck finding leads and analyzed quite a few from afar, but want to maximize our efforts. Most of the houses we are finding on the MLS are priced too high for the numbers to work on a fix/flip. Are most investors using wholesalers to find off-market deals? We have done some searching ourselves and started sending out letters to generate leads, but we're curious if using a wholesaler would be a better option. We understand we are going to have to analyze quite a few properties before we land on one that will work, so we want to get our eyes on as many deals as possible.
Hi Jordan -
I am working on a new tool aimed at making real estate investment analysis a more streamlined and data-driven process. Our solution combines real estate data with the power of AI to help users analyze their deals faster and with more confidence to make better decisions and in turn buy better deals.
We're in the early stages and would love to hear from you from an investor's perspective as you hunt for deals. Your feedback and experiences could greatly help us fine-tune our approach or develop other features that you would find valuable.
My business partner and I have been searching for our first deal using an agent and searching the MLS ourselves. We have had some luck finding leads and analyzed quite a few from afar, but want to maximize our efforts. Most of the houses we are finding on the MLS are priced too high for the numbers to work on a fix/flip. Are most investors using wholesalers to find off-market deals? We have done some searching ourselves and started sending out letters to generate leads, but we're curious if using a wholesaler would be a better option. We understand we are going to have to analyze quite a few properties before we land on one that will work, so we want to get our eyes on as many deals as possible.
Hi, I'm a wholesaler. I think @Crystal Smith said it best. You should have leads coming in from as many sources as possible. My team will beat out most MLS deals you see. We have more experience, we operate on a bigger scale and can move faster. We do cold calls, online marketing and sometimes even door knocking to find motivated sellers. You mentioned that it may crowd your email, just make an email specifically for receiving real estate deals. Better to see it and choose not to move forward with it than to not see it and have no power and no decision.