Wholesaler · Houston, TX · Member since 2013 · 57 posts · 5 votes
Good Morning,
i'm new to the real estate sector and wanted to get as much advice as possible on the area i would like to get started in which is wholesaling. I've done research for years on various sectors of the business but decided that this is the best for me at this stage of my real estate career. I've decided that im done with research and now diving in head first hoping to get through the learning curve as soon as possible. With that said im going to have to start off by looking for investors to back me for my first few deals as i gain some momentum. Does anyone have any suggestions on the best route to take in finding investors? Also, what due diligence should i partake in when looking for an investor? And lastly, what are the "DONT DOs" and what to watch out for in this process to protect myself. Any advice on this would be great and thank you in advance.
I'd say it's VERY unlikely that a company that is selling you properties will be selling them at enough of a discount that you can turn around and resell them at a profit. There are two reasons for this:
1. Most wholesalers (whether individuals or brokerages) are going to mark up their properties as high as possible when selling. There is unlikely to be additional markup available in this properties as-is;
2. If this brokerage that you're working with is willing to work with any investors, it's likely that your potential buyers (investors with cash) will have access to these same deals before you buy them. Investors are unlikely to pay you more for a property they could have purchased directly for less.
Add to this the fact that, if you purchase the properties outright from the brokerage, you will have extra closing costs (the first purchase), loan fees and potentially other costs that eat into your margins.
All-in-all, this doesn't sound like a good way to try to make money in this business...
@Nathan Cron, Your assertion that New Western does not put ARV on marketing materials is patently false. At least in Houston. I have been receiving the Houston inventory properties for over a year, averaging 3-5 per day, and they all have a CMA on them, which is interchangeable with ARV. While I have yet to find a deal that works for me with New Western, I continue to look.
Tom Cooper I believe Nathan was speaking about the Austin and San Antonio Market not Houston. If anyone would be interested in a list of houses where investors who purchased properties from us and did great please message me. Again, we do not represent anyone. If the deal doesn't work for you then pass on it- if none of them work for you then let us know so we can remove you from the list. I've been with New Western for more than 8 years now and I have hundreds of satisfied contacts with amazing business relationships in multiple cities. The truth is most people never grow up and take responsibility- everyone wants to blame someone when things go wrong for them. It's unfortunate but that's what's happening. Happy learning and wish everyone great success in real estate.
@Tom Cooper Thanks for calling me out on that Tom. I'm the general manager and broker for our Austin and San Antonio offices. You won't see an ARV on any of our marketing packets. Hope you see something you like soon.
Guys, it was not my intent to cause such a heated argument but please understand that my post was not to bash New Western. As a new member of the real estate community my initial post was AT BEST a non educated stab in the dark that caused some head scratching but at the same time gave me some great insight and learning. My philosophy is to jump off a cliff and build the airplane on the way down, and with that being said i signed up with New Western with very little knowledge of real estate but since then and even since my initial post i have learned exponentially more about what i want to do and all of your posts have been great excluding the bashing. With that being said im still looking for mentors and advisors that will help me to become a successful wholesaler and that has been my intentions all along. I appreciate everyones input but please know i do not condone any bashing. If anyone has any advice for a newbie that is hungry for success please reply but please to not use my post to bash.