Wholesaling: Chicken or the Egg, Which Came First?

Question

So I'm a new Real Estate Investor and I'm aggressively pursuing wholesaling. I've started my yellow letter marketing campaign and the calls are rolling in. i have a couple leads that would be great deals (either lease options or wholesaling), but I can't find any serious buyers in my area. because of this I am holding off leads from going to contract.

Did I go about this process all wrong? Buyers first or motivated sellers first?

Did I go about this process all wrong?  Buyers first or motivated sellers first?

Anson Young · Answer

Adam Germany
And those guys are in Denver, not up in the mountains!  (unfortunately).  Wholesaling is an art, you are taking action, so you have a huge head start.  You have to find a niche in those resort-ish areas, its not a 'normal market' by any means.  1/1 condos to 3 million dollar ski in/out homes.  Seasonal tourist type situation.  I plan on owning some ski condos one day, and know that you can do well with them.  You are on the right path.  Hit me up if you need any help with CO real estate questions or anything.

Adam Germany · Answer

Anson Young thanks for that heads up.  I've been searching for the investor community at high altitude without success and this info is priceless and very timely.  Thanks again for this PRICELESS piece of info!!

Adam Germany · Answer

Elizabeth  Colegrove thanks for your willingness to support and help.  If you are caring enough to help...I am am more than humble enough to accept.  Thanks so much!!

Anson Young · Answer

Adam Germany - all the summit/grand/eagle guys I know are doing big homes, selling them for fractional ownership.  So, finding a 600k fixer house, putting 80-100k into it, selling 1/4 shares for 250k each.  Most of the condo buyers are 2nd home buyers looking for a ski getaway.

Elizabeth Colegrove · Answer

Adam Germany don't give up on your properties that you found. Personally I think that would be the hardest part. I know, in my area. I could find buyers for a good deal in the heartbeat. Its just how you market them. If you need help, I would be happy to help. I think you just need to present your data in a better way.

Elizabeth Colegrove · Answer

Adam Germany Your numbers do not look like they would attract investors. They are not "cheap" enough. As a buyer for personal and buy/hold rentals. If you market them right. They might be very attractive to traditional buyer and potentially buy/hold landlords. What are your rents that you are expecting both monthly/weekly/daily. The biggest thing you need to know is the hotness of the local markets. The area we live in, is currently a "GREAT" deal. The problem is, their wasn't enough available for the market. That would have been the dream, there was traditional buyers with cash that were buying these places.

What type of ski slopes are they? Who are you attracting? I am an avid skier. There is the ski in and ski out apartments/condos. Than there are the one that skiers rent more out in town. Lastly, there are the houses that locals live in. Think of three circles the first one the closest. The last one the farther outside. The closest ring makes the most money.

Adam Germany · Answer

Hey Elizabeth  Colegrove thanks for your candor!  I totally appreciate and respect that.  You speak from the mind of a buyer, so I totally need your perspective.  I see that my marketing of the property needed some help as well.  There are two ski resorts near the property.  One is within a 5 minute drive, but the other is 25 minutes away so I lumped them together, another rookie move. I could have described it better.   Thanks so much for the input!!   Your post was COMPLETELY positive and helpful!

Elizabeth Colegrove · Answer

Disclaimer: My background is not wholesalers. I am coming from the buyer side.

I would find properties. Buyers will come, even if they are first time home buyers!

Your quote "My thought is, if the deal is good, is the money any less green an hour and a half away?!? "

Honestly, your problem is those aren't "great" deals. The location your describing is nothing special (personally you need to be 10 preferably 2-5min from ski slopes). The numbers aren't great. Those are the type of deals that I find on the mls.

I am not trying to be negative or unhelpful. Just a buyers thoughts

Adam Germany · Answer

Thanks Deborah Saddler & Bryan K. I realized the error of my ways in my calculations.  Thanks so much for the additional input, all of this info helps.

Brian K. · Answer

Adam Germany I would have to agree with others on getting the house at a lower price.

ARVx70%-repairs-your fee=offer price to seller.

For me finding the deal came first than the buyer.

You want sellers that need to sell, not thinking about it.

Best of luck and keep it moving.