get good deals from wholesalers

18 Replies

Hello, I am based in Houston, tx and I am a flipper looking to purchase some good deals from wholesalers.  I am not interested in properties to buy and hold, I want to flip properties with a decent amount of equity.  Does anyone have advise on where to go?

I am in Houston area too. Moved here few months ago. Done couple of flips in other state. Have he cash and know the basics. Have been looking at so many deals from different wholesalers. 99 percent of the deals make no sense. your typical issue is high arv, low rehab cost and high asking. it is becoming pretty normal to see them drop the price. 

Best way to find your own deals and you want to keep your flipping business going and not hoping that 1 out the 100 might make sense. The days for %70 minus rehab are gone or at least in the Houston area. 

I too have been looking for deals here in Houston and none of them make any sense. ARV is way off and comps don't make sense either. They're trying to sell for almost full ARV while needing rehab and some wholesalers are wanting double closing plus other fees and it just adds up. I actively look daily and ready to make a purchase asap, this will be my first fix and flip.

Originally posted by @Tan Johnson :

Hello, I am based in Houston, tx and I am a flipper looking to purchase some good deals from wholesalers.  I am not interested in properties to buy and hold, I want to flip properties with a decent amount of equity.  Does anyone have advise on where to go?

 I think EVERYONE (there is no shortage) is looking for someone to say "Here is a $200k house for $150k.  Congrats on being able to buy it and make $50k"

That doesn't happen.  You can post here, or you can call 1000 people.  If you're just saying "Send me a home that has equity" you're not going to get the result you want.   You either have to look on your own, have a network of brokers that KNOW you can perform, or get extremely lucky. 

My Team deals mostly in Wholesaling, but I definitely agree with some of the other guys in here about a large percentage of wholesalers. Many Wholesalers do not conduct themselves with healthy business values that are vital in the growth of their business and nurturing relationships. I've seen a lot of Wholesalers that market contracts at unreasonable prices, inflate ARVs, underestimate the repair costs, and can be just plain lazy when it comes to doing their due diligence. There are many Wholesalers out there, that their main marketing strategy is to just find and repost other Wholesale deals all day (Some people support that strategy, but I find it kind of indecorous). With that said, great Wholesalers are out there... sometimes you may just have to navigate through the rough waters to find the islands with the most fruitful trees. Unless you're reading this post... 

My Team has made it a mission to always conduct our business as a Tier 1 Reputable Wholesaler. We work diligently to find honest, sensible, and profitable deals, where everyone can win. -Cory Bittick / Houston, TX

@Tan Johnson

Seek out and contact the HomeVestors franchisees in Houston - there are a ton of them!

Wholesaling is what they do for a living and you should be able to get some great deals from them. They spend tremendous money on marketing to find the properties to sell to rehabbers who are then able to make a great profit for themselves.

Good luck and thanks for asking!

@Tan Johnson @Haider Alazzawi Many of my clients are finding their deals through wholesalers that I've connected them with. While it's currently tough to find wholesale deals that meet the 70% rule, it is quite common to find them around 75-80% (of ARV minus repair costs) in major TX markets. Due diligence is a must to verify the ARV and repair costs as wholesalers don't spend a ton of time on that. You may also be able to find a strategy that the wholesaler did not consider (zoning change, make into multi-unit, college rental, Airbnb). Wholesaling companies are great, but finding a wholesaler that does not already have thousands of buyers on their list is going to give you more priority. At the end of the day, marketing directly to the sellers and cutting out the middle-man is going to get you the best profits.

I'm an active Realtor and investor here in the Houston market. I agree its who you know. As @Cory Bittick mentioned I went through some rough waters before I found a couple good wholesalers I work with. Also attending great meet ups where they close deals on the spot is AMAZING. Let me know if you interested and I'll invite you out to the meet ups you can meet active wholesalers that have deals and get on their buyers list.  

I agree with Landon, Erica & Cody! There are some good wholesalers here in the Houston area, but it's more about building a reputation with them and understanding how they work. They don't just blast out awesome opportunities all day via email or on Facebook - why would they do that instead of keeping them? The stuff you get on the "Buyers List" is often the stuff their A-List investors didn't want. Not always the case, but it is often true. They want to work with the investors that keep their word, don't play games, and close. Landon is right as most "deals" sent to me end up being around 75-80% of ARV in the Houston market. You have to be okay leaving some cash in the deal if it's a rental potentially. If it's a flip go after the light to medium cosmetic stuff that you can turn over quick and be in and out with a quick $10-15k. Not every one will be a home run.

Remember, the price you see is not set in stone. You have to start a conversation about what you can offer and why. Thats almost a golden rule in any real estate transaction - whether it be retail or an off-market deal. You'll never get a "deal" if you aren't making offers. If you see a wholesale deal for $100k but your numbers tell you the max offer you can make is $85k, then make them an offer for $85k. You aren't doing anyone any harm, and if they say no, you're right back to where you started with no property in hand. No harm no foul. Move on to the next one. There's plenty of fish in the sea.

I would recommend you attend a lot of local real estate investor meetups. Wholesalers are EVERYWHERE. Get on every single list you can and meet every single one you can to develop a relationship. Build win-win relationships with them. 

Originally posted by @Karen Rittenhouse :

@Tan Johnson

Seek out and contact the HomeVestors franchisees in Houston - there are a ton of them!

Wholesaling is what they do for a living and you should be able to get some great deals from them. They spend tremendous money on marketing to find the properties to sell to rehabbers who are then able to make a great profit for themselves.

Good point - I know one of them because they are also one of the local HM lenders in our area.  They even told me to keep them in mind if I do come across any opportunities.

I have decided that networking is really the only way to find a cost-effective deal, at least at this point in the market cycle.  Gotta drink a lot of iced tea with a lot of folks around town.