Are Wholesalers a good resource for fix and flip leads?

9 Replies

I'm looking at several different ways to identify rehab properties in the Philadelphia area and was wondering if anyone has had success with wholesalers finding properties for them? What's the best way to find a great wholesaler? Thanks!

I call all the " We Buy Houses" bandit signs and craigslist ads and ask them what deals they have available. It's definitely hit or miss but the more contacts you make the better chance you have coming across a deal.

Whether for fix and flip or buy and hold, wholesalers can be a good source if the numbers work. Just don't trust their numbers. Look for a good margin in their numbers to screen initially and then do your own analysis of ARV and repairs to see if it's really a deal that works for you.

Originally posted by @Steve Francis :

I'm looking at several different ways to identify rehab properties in the Philadelphia area and was wondering if anyone has had success with wholesalers finding properties for them? What's the best way to find a great wholesaler? Thanks!

 Great question Steve! I have recently started working with wholesalers more frequently and have found it CRITICAL to run my analysis as well.  Overall,  there seems to be a solid mix of both experienced and "not-so-experienced" wholesalers.  Regardless, I personally appreciate their role in the food chain!

Why not Steve.. Wholesalers are looking for numbers of properties in your area. Go and search your local business listings where you can find heaps of wholesalers list.

Hope this helps!

Thanks everyone! @Robert Shaw  when you say local business listings are you referring to the local newspaper? Any other suggestions on finding wholesalers? Thanks.

@Steve Francis  

Welcome fellow Pennsylvanian! There is a large REIA group in your area called DIG, check it out, you'll meet other investors and wholesalers there.

Some wholesalers, also do fix and flip themselves.  I've seen situations where they skim the cream properties for themselves and then try to wholesale the properties that are inferior and that they don't want to fix themselves, either because there is a potential low return or the property needs tons of costly repairs, or are in a bad neighborhood.   

Be careful and check the numbers before signing for a deal. 

I'm sure it varies, but I have gotten excellent deals from wholesalers for flips. I made 10k on a recent flip that I just did a basic clean up on, secured the door, and resold to an investor. I got that deal through a good wholesaler in my town. 40k purchase, resold for 50k in 60 days. 

DIG's website is http://digonline.org/

I have been a DIG member for over 7 years, so send me a colleague request and message and I can pass along some more info to you. 

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