How do you find a reputable wholesaler?

Question

How does one find a reputable wholesaler, specifically in Central or NNJ?

Ryan Donohue · Answer

@Eric D. I definitely agree with @Charles Kao.  The only problem is that sometimes if a rehabber/investor finds a good wholesaler they'll likely want to keep him/her to themselves.  So doing your own due-diligence will be your best bet.  Often times(or at least the one I attend) at REIAs wholesalers can present offers for everyone to analyze and see if they're interested.  Find out who is getting a lot of leads(whether they go through or not, volume is good) and if they convert those to under contract leads because conversion is the other side to the lead generating sword.

Josh Caldwell · Answer

@Charles Kao is right.  Your local REIA club is like a vetting process for all the members of the team.  If other investors trust a guy, then he is likely trustworthy.  The wholesalers who attend your local REIA clubs also know that their reputation is very important and they will try to avoid burning an investor

Eric D. · Answer

Buying from a wholesaler means that you will have to rehab the property to a certain extent? Is that true?

Charles Kao · Answer

@Eric D. @Ryan Donohue

I think Ryan has a good point in that some people don't want to give you info on the best leads so one way I have remedied that is that because I market myself, I used Google Adwords to determine the most competitive searches for my website for advertising.  I type those into a search engine and I contact all the wholesalers to have them add me to their list.  This will allow you to build up a book of wholesalers.   I have found that the people who market to keep the property to flip rather than with a plan to always sell tend to have better deals, because they are just selling off the properties that don't met their mold or have too much going on or some other reason so they only markup 5-10k.  With the wholesalers I know that only market to reassign I find they are asking typically 20-25k over what they get it under contract.  Once you find a wholesaler you like you can work backwards and ask if anyone has done a deal with them or has heard anything.  This however could be going back to the same thing Ryan said where you don't want to give up all your secrets but I feel that if you are consistently going to these REIA meetings, you'd have to be pretty stupid to screw over another investor there.

How do you find a reputable wholesaler?

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