What are some important questions to ask a wholesaler?

Question

Hello Bigger Pockets People

I am new to BP and REI. I am excited to participate here and get started on new ventures. So I have an investor/good friend and he needs a little push to get started and wants to start off small. I am meeting with a local (Seattle) wholesaler today and am thinking this is a good way to introduce my investor to some potential properties. Can anyone offer advice on some key questions to ask a wholesaler and or what I should be looking for in wholesaler?

Thank you,

Ryan Whitworth

Tim G. · Answer

Do YOU have it under contract?

Is this off market or listed?

Braden C. · Answer

One question I would ask is how you can get on their short list. Most good wholesalers have a short list of buyers they call with their best deals. If you're meeting with a good wholesaler, you'll need to prove to them that it's worth putting you on that list.

You can probably find 20 wholesalers in your area but you'll want to find the one or two good ones and then develop a strong relationship.

Ryan Whitworth · Answer

Thank you Ibrahim S for setting me straight on Tim G.'s advice, major brain fart on my part and great advice from the both of you. Asked all of the questions and received the answers I was looking for. Braden  C. the wholesaler seemed to be the real deal and willing to give me plenty of advice on how to get started if I chose to do so.

He agreed to let me tag a long on the next property he plans on getting under contract. I thought that was pretty cool!

Thanks again everyone.

Ryan

Ibrahim Hughes · Answer

Ryan I think  Tim G. was giving you questions to ask the wholesaler. We all know you don't yet have it under contract, hence the need for this thread.

But Braden  C. hit it on the head imo.  Most good (as in they know how to find deals that make money for investors/rehabbers) wholesalers, like REO listing agents, have a short list of investors they like to contact about a hot deal. It will be very difficult imo (not impossible) for you to get on that list being new. You are basically asking an established wholesaler to risk taking a chance on you. This is why I tend to suggest to new investors to concentrate more on finding your own deals directly with the seller.

Having said that, if he/she is a good wholesaler and willing to meet with you then you first need to establish whether or not they know how to find good deals or whether they are simply wasting your time trying to learn just as you are.

So question #1 - How long have you been doing this and how many deals have you closed?

#2 - What did the numbers on your last 2 deals look like?

#3 - As Tim G. suggested - do YOU (the wholesaler) have the deals under contract or is this a daisy chain that may get out of control. In other words is your wholesaler directly under contract with the seller or is he/she going through another wholesaler?

Ryan Whitworth · Answer

@ Brandon Turner. Going to to the meeting @ 2pm. I will post how it went. Thanks for the interest. Glad to see fellow Washingtonians on here as well!

Ryan Whitworth · Answer

@ Tim G. Nothing under contract. I don't have a property yet. I am still inching my investor along to find the right property.

Brandon Turner · Answer

Hey Ryan Whitworth  welcome to BP! There has been a lot of local Washington people here on BP in the last few days. Very cool. How did the meeting go?

Ryan Whitworth · Answer

Thank you fellow Ryan. Building relationships...absolutely, good stuff! Thank you, I am hoping this meeting could become a one of those good relationships.

Ryan Becerra · Answer

Welcome to Bigger Pockets Ryan!

Working with wholesalers always has different aspects to it. Because most, if not all wholesalers, work buyers and sellers.

So they will have certain investors that are always looking to buy,  it is important you know what they are looking to pick up in case you come across anything that they will want to purchase.

If they work with sellers than they have an inventory list of their own, and one of their properties may match up with one of your buyers.

This Business is all about relationships, As Braden said "find one or two good wholesalers and build a strong relationship" and once those relationships are strong enough build a few more.

Hope this helps 
Best of wishes to your success!

Ryan Whitworth · Answer

Thanks Brandon. That is very helpful. I will definitely be sure to ask that question.

What are some important questions to ask a wholesaler?

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