Do house flippers use wholesalers

11 Replies

I am in Georgia and am finding it harder to find a good deals with the intent to purchase and renovate homes for resale.  I am considering looking to wholesalers.  Can you get a good deal with a decent spread using wholesalers?  If so does anyone know of wholesalers in Georgia and Florida that I can feel comfortable working with?  Also how do you vet a wholesaler?  

The low hanging fruit is long gone in metro Atlanta.  Finding good deals is tough.  We just closed on a flip project we got through a w/s so it does happen.  I get several emails a day with w/s offers but most are a joke with high asking price and stupid low reno estimates.  Find one or two from Craig's list ads and get on their mailing list.  All these guys talk and soon you will be on more lists than you can imagine.

Do flippers buy from wholesalers?  I will gladly pay anyone for bringing a deal to the table.  

I'm also of the mind that these days it's necessary to start thinking and acting like wholesalers and going out and marketing to get your own deals.

How do you vet wholesalers?  You don't vet them, you vet the deals.  Get on as many lists as you can and you'll start seeing who has access to good deals, and who is just trying to resell someone else's assignment.  

Yeah. as far as Georgia , i am very familiar with, plenty of deals like any market if you know where to look. I got my start showing a company in atl how to find deals etc and I wasn't even in Georgia, they are huge now. As far as Florida I have several partnerships in various parts , same thing if you know where to look, how to find deals. Most dnt outside of the mls and courthouse . Florida is a perfect market for wholesalers , a dream,so many buyers paying above asking . some wholesalers are more polished then others, i had one when I was flipping , that gave me noi, rental, price difference etc if I converted a 3 bedroom to 4 bedroom etc, the works lol. Some flippers you have to think for them, can't see the whole picture, most can't. She is doing great in various states . I responded to a post on how to find deals got several good looking out it is working in their markets . I show people all the time in my market and surrounding ones, if I happen to be in another state I do the same . fun stuff people paid it forward better world. Also, in Florida new networking events are coming soon. I dnt flip now cause I have found easier ways to make money and faster. So many ways to make money, dang. Enough deals to go around.

Look at 100 deals, and 1 of them will be a good bet, and 3-4 of them will be OK, given some variable works out.  Wholesalers are the same way.  You have to sift through a few of them find a good one.

But here is the thing -- a wholesaler needs a proven buyer than can close.  So most of the good ones, that have real deal flow, will send their deals to a handful of their proven partners. I mean, why wouldn't they?  Their income depends on the ability of the buyer to show up and close.  So they develop a good relationship that way.  Whatever is left goes on a 'buyers list' or gets pasted on FB.  And that is what you are probably looking at.

Listen, get on a 1000 lists if you want, but if a deal gets on a list, it means one of two things:  (a) it isn't a deal or (b) the wholesaler doesn't have a very good buyer network.  Or both.

ABSOLUTELY !  I run a wholesaling business in Indianapolis and our realtors/clients love when we bring them deals. Most investors know they need to pay a fee for your work and time. 

@Christina Curl  

1. I've bought 7 homes in 18 months and 6 were from wholesalers. Best way to buy. They do all the lead generation for you. Just let them know what your max purchase price is.

2. Find them on here and also via LinkedIn. Search 'real estate wholesaler'

All the best!

Thanks @Hank Sacco.  I will try your suggestion.   Since your from Georgia can I ask, are you doing rehabs requiring going down to the stubs or do you feel it's safer to buy homes needing less work.  With our market tighting some, I am getting a bit concerned with putting a lot of money into a home.  Your thoughts?

Originally posted by @Christina Curl :

I am in Georgia and am finding it harder to find a good deals with the intent to purchase and renovate homes for resale.  I am considering looking to wholesalers.  Can you get a good deal with a decent spread using wholesalers?  If so does anyone know of wholesalers in Georgia and Florida that I can feel comfortable working with?  Also how do you vet a wholesaler?  

 I have never met an investor who is willing to share the name of a good wholesaler. Good wholesalers are too hard to come by and deals from them are too few. No one is going to add competition for themselves on purpose. If you ever get the name of a wholesaler from an investor, it is a bad one.