How Many Do You Look At? Looking For Wholesale Deals Chicago S and SW Burbs

9 Replies

Hi All,

I'm looking for fix and flips to retail buyers and am on quite a few wholesaler "lists" but don't believe I've come by a good deal yet. Most overestimate ARV while at the same time underestimating rehab costs. I'm just not seeing the spreads to put my partners or my money at risk.

I guess this could be the competitiveness of the market combined with flipping being so popular again but I don't see how these guys could be getting many repeat buyers with the deals I'm being sent. Maybe I'm missing something though.

How many deals even from wholesalers do you look at before finding a good one?

Thanks-Jeff

Jeff,

What areas are you investing in? Do you invest nationwide?

Hey there @Damon Marshall  . I am looking in Chicagoland-South and SW Suburbs.

Thanks.

good luck, if you ever consider investing down in Kansas City, I've got the turnkey guy for you :). I don't do business there but I know he's good. 

would you consider deals in NW Indiana?

I see deals above my budget from time to time in my area.

Hi @Tim Davids  . I would consider if they are in decent areas and reasonably close to the border.

Thanks-Jeff

I've seen the same thing from wholesalers in my area as well (I'm about 20 miles south of you). The ARV is always exaggerated. No idea on the rehab. Typically I see pretty large rehab budgets too so that makes me wonder if they're over on those as well. Sounds like you're seeing rehab estimates that are actually lower.

But yea, I just don't see how these wholesalers are doing any business unless they're getting suckers to take these deals. Then again, maybe their list prices are just meant to be a starting point.

Have you tried giving them offers that make sense to you based on your numbers.
They may be at 180k with 50k rehab on a house worth 300k. You may see the same deal that the house needs 60k and is worth 280 so you need to offer 165k?

HI @Mike H.  . I don't want to slam or lump all wholesalers in one group but yea I am a bit frustrated. I'm sure some are selling properties to investors-heck I am newer to the investing side as well. That's why I said I may be overlooking something. 

My day job as a real estate agent has me looking at properties and in the MLS daily, so I see what homes sell for. I am also of the mind that price is the reason a home doesn't sell-most of the time. Borrowing money or the inability to do so is one of the main reasons "deals" fall apart. Yet we always here "if it's really a deal the money will be there".

I'm aware I may be sounding cynical which I don't want to. That's the reason for my question. I hear you have to look at 100 or x amount of deals to find a good one. Does that apply the same to wholesalers as well? I'd love to hear from some active wholesalers or rehabbers.

Best,

Jeff

I think I might have a great deal for you. I will contact you as soon as I have it under contract, just waiting to hear back from seller. 

Yea. Maybe a flipper or wholesaler has a bit different take on that. But, for me, I'd say I'm locking in deal for every 4 to 6 houses I'm looking at. I'd add that means actually looking at in person with my realtor - as opposed to looking at them online. Online I'd say its over 100 houses I'm looking at for every deal.

But I'm to the point now where I think I have a pretty good idea when a house is getting closer to being an opportunity for me and then I'll go take a look. Every once in awhile, I still go out to the ones that I know aren't in my range just to see them.

I do know that there are some areas around here that are just ultra competitive with some big money and thats going to drive the prices up.  One thing I'd suggest is possibly looking at the will county sheriff sales. Not as many investors competing there. But those sales are cash deals and you typically aren't able to get inside the homes before you bid (I think sometimes you can offer the occupant money to take a look).

Scott W. who is also on bp has become somewhat of an expert on those recently. I don't have the risk tolerance for that myself but it might be a way to get to some of the deals before they open up to all the investors there.

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