So I got connected with a good source who has access to cash reserves from Investors, as longs it nets them 20% and above on returns, they will Invest. One of my connections on the wholesale side has been slow to produce properties and I would like to have at least 3 to 4 sources that can produce wholesale properties for this venture. What is the best way to get into contact with these wholesalers? Also what is fair markup vs a gouge? I'm on a list for wholesale properties from a company, but they leave little room for the Investors to make anything by the time they resell it.
MODERATOR: NO OFFERS TO SELL PROPERTIES OR ASSIST THE POSTER, PLEASE.
@Francisco Garcia Jr I will be following this thread to see the comments :)
I'm one of those wholesalers in the Phoenix metro area, and always looking to connect. Yes, sometimes we can't get the motivated seller very low in price which leaves the margin low. We're not always making a killing on each sale, sometimes it's just a little.
@Margaret J. How do you find deals to wholesale in the Phx area? Do you use direct mail?
I do some direct mail, I use bandit signs, I use bird dogs, and sometimes word of mouth brings them to me. I'm trying to expand my marketing right now because sometimes those deals don't come every month, but I do as much as I can as budget allows.
@Margaret J. What area(s) do you target?
@Margaret J. is a fair when it comes to her deals, other wholesalers are not.
I had a meeting with an auction company, for my Investors it seems this is the best way to get the best returns for them, seems a certain price range there is not that much competition. There's more work involved and no real inspection period, but there is more opportunity since I am choosing which areas to make bids on properties.
Erik, I live on the West Side, so I primarily target that area because I know the neighborhoods the best. In reality, my area is pretty wide circling most of metro phoenix area from some south Phoenix, to as far west as Goodyear and up north a little past the 101 through central Phoenix. I try to work an area within 45 minutes drive. The east side is pretty far for me to drive, so I don't do much there.
Francisco, thank you for your comment. I find if you try to make too much on a deal and you don't leave enough margin, you won't be able to sell it. So out of necessity, the margins I make are pretty fair. Of course, we're all waiting for that one killer deal that will make bunch.
@Erick Martinez we are mailing 5000 pieces every Monday, our target market is central corridor, Scottsdale, & Tempe. Feel free to inbox me to discuss what your investor needs are. We do ensure there is a sizable margin for Investors. FYI: recent wholesale deal purchase price 179, 900 ARV: 285k repairs 40k
@Marcus Maloney Wow, that's a lot of direct mailings. What kind of distressed properties do you target?
I don't planning on investing (just yet, at least). I'm a newbie and I'm looking to get to know, and network with local investors, cash buyers, and also local wholesalers (to learn from). I plan to start a direct mail campaign soon, end of Feb. I'm gathering information on where to start mailing (which of the closest areas to me produce to the most leads) and narrowing my niche down to only 2 types of distresses properties to target..
Locate and attend 3 different local REIA club meetings great place to meet people gather resources and info. Here you will meet wholesalers who provide deals and rehabbers.
Two Great reads, I bought both J. Scott The Book on Flipping Houses, The Book on Estimating ReHab Costs http://www.biggerpockets.com/flippingbook
Download BP’s newest book here some good due diligence in Chapter 10. Real Estate Rewind Starting over
I am new to posting on BP but I have the $$ and experience I just need more deals in Phoenix (anything in Maricopa & Pinal counties). Let em know if any of you come across deals you need help with. Birddogs and newbies bring my your deals and I will teach you the ropes. Check my profile for my experience (Investing since 1995). Thanks Dave G
Welcome to BP, it is a great place to connect. Use the keyword search to keep tabs on BP activity in the specific areas of Arizona you are interested in.
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This thread especially with the mods makes me laugh, geez I thought this was a place to connect?
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