Hi there! I am a new real estate entrepreneur in the Dallas fort worth area looking for advice. We are in currently looking at doing our first fix n flip. Any recommendation of a whole saler in the dfw area? Mistakes to avoid? any advice for a new investor will be appreciated. Thank you
Generate your own leads. Be super careful with wholesalers. They often smell blood in the water with new investors. Do you own ARVs and estimate your own rehab costs. The best flippers will laugh if you ask them if they buy from wholesalers. Back in the day good wholesalers would perhaps try to make $3000-$5000 assignment fee from wholesale deal, now seems like they want $20K, $30, $50,000 and leave the flipper with no meat on the bone. What we normally see is ARV way too high, repair costs estimated way too low. It is also sometimes tough to figure out who's deal it really is. So many people advertising other people's deals as their own in this market.
There are good ones out there, but enough bad ones, that can make your money disappear quickly.
Yes, I would also recommend doing your best to generate your own leads through using your own connections, direct mail marketing, etc... Start talking to everyone you know telling them what you are looking to do, that you will purchase a home for cash without realtor fees if they know of anyone in a tight spot needing to sell fast. You may be surprised who will pop up needing to sell their home. If you do work with a wholesaler, I would highly recommend getting a good relationship with a GC ahead of time and have them walk the property with you. I have purchased several deals from wholesalers and while we have made out okay on all but 1, our rehab budget has NEVER been what they say it will be. It has always been $5-25K more than their estimate.
And one small tip- people always remember to budget for floor and paint, but they seem to forget that when you replace the floors you often have to re-float the floors, get new baseboards, trim, paint the new trim, etc... it's all of those little, but necessary things that add up. :)
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Good luck on your investments!
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