Are reliable wholesalers really that hard to come by?

Question

Hello South Jersey!

I have been investing in Cape May and Atlantic Counties now for 18 months and the one thing that I haven't found is a reliable wholesaler. I have rehabbed 8 homes and wholesaled 9 more in the last 18 months and I don't see why it's so hard. It seems pretty simple to me. There are three main things that you need in order for the wholesale to make since.

1. Have it under contract - I know that this is a scary thing to do for a wholesaler. What if you don't wholesale it, you might have to bail on the buyer or even worse...buy it. Most of the time wholesalers won't do this because they have no confidence in their system.

2. Have a repair list with pictures - If you are truly gonna tell me what you think the repairs are going to cost you should have a list of repairs with some pictures and/or video showing the conditions of the property. It's not hard to team up with a contractor and get them to give you some ball park figures on certain repairs.

3. Have comps to justify your after repair value - This number is the most critical in the entire equation. You need to know your market and the difference between the sale price of a 3 bed 1 bath an 4 bed 2 bath in a particular neighborhood. You should have at least three sold comps supporting your the price you say the property will sell for. The word comps is short for comparables so they should be just that, comparable. Same number bed/bath, same school district, near the same sqft.

I have yet to find a wholesaler that can meet this three simple criteria in Cape May and Atlantic County.

Am I off the mark here? Wouldn't you guys like to have a wholesaler that could provide you the confidence you're looking for and deliver this type of information. Well, you are in luck!

My Marketing and Acquisitions Team are kicking up the amount of leads coming in on our marketing and we would love to add you to our buyers list with your specific criteria in Cape May and Atlantic Counties.

Happy Rehabbing!

Emmanuel Lopez · Answer

@Mateusz Prawdzik nice to know. Are u usually in elizabeth doing work? It's an area I'm familiar with and do my jobs in. PM me and lets network. See if something positive comes out of our meet

Mateusz Prawdzik · Answer

@Emmanuel Lopez I develop and rehab yes. I am trying to do more additions or total gut jobs than minor renovations. I don't like to do touch up jobs. I am doing one in Elizabeth now, but I am just giving it to one guy to do all the work and not really managing it at all.

Emmanuel Lopez · Answer

@Mateusz Prawdzik I rehab properties.

Donovon Rogers · Answer

@John Kilduff I actually know a wholesaler in DE that runs an apprentice program where she trains new wholesale investors to know good or bad deals, find leads and close on the good deals with them and splits the profit with them but I only know one buyer in NJ who buys in Burlington county but made I'm with it. I know we can make it work and it can bring good business so just hit me up.

Mateusz Prawdzik · Answer

@Emmanuel Lopez What do you do? Are you a wholesaler or a rehabber? Developer?

Mateusz Prawdzik · Answer

@John Kilduff I am with you on that. Too bad that you are so far away, we could of started like a small little meet up of some sort. I am helpings tons of wholesalers not only in NJ but also out of state just like @Donovon Rogershelp estimate rehab costs and arvs. I get pictures and I ask, what do you think the Rehab and ARV is, and then I give my best opinion over the phone and say, "listen you are right in this point and wrong in this point. You overlooked this aspect but you were good to look at this." I love teaching and helping others grow because as I teach others, my company and business grows as well.

I do the same model with lots of wholesalers as well, they find the lead, they bring it to me. I target only my specific buyers that I know buy in that are and then move it. I hate blasting it because it makes the deal less exclusive and makes investors feel like they are getting shopped around. Let's start this, I am 110% in it.

Jp Kilduff · Answer

What do you guys think about a learning academy for local wholesalers? Something where you set up a relationship that they bring all their deals to you and together you guys evaluate the deal, come up with the correct numbers and create a presentation that gives their cash buyer list the confidence to evaluate the deal. In exchange you would partner up on all the wholesales and provide access to your cash buyers list as well as get first look at any deals!

It's a big time commitment but I think it could pay big dividends!

Donovon Rogers · Answer

@John Kilduff I am a wholesaler in Delaware and I can understand your frustration. Even though I am here in DE I do see the same problem when I meet the very few other wholesalers in my state. For me I studied wholesaling a lot before I turned 18 last month but the problem is that wholesalers aren't trained correctly. I know I can speak from experience because there has been times that I've gotten ARV wrong but lucky I have people like @Mateusz Prawdzik and some house flipper buddies to help with going over my numbers so now I understand ARV and repair cost and holding cost. My proposal to your forum is that you can make a crappy wholesaler into your best wholesaler if you can train him/her to know what you're looking for and how the have to work by explaining to them for a brief 5 mins. There are dirty people out there who will try to make a bad deal look good to a buyer (another investor typically) and try to get some money out of it but if you can see that your wholesalers and just starting out or is just off but has good morales and really try to bring you good deals then it would help if you take the little bit of time to teach them what you are looking for so they can be your best wholesaler and make you lots of money by having the right numbers... Hope I could of helped with your situation.

Are reliable wholesalers really that hard to come by?

Most Popular Reply