Why so hard to find wholesalers in Las Vegas?
Most people don't realize there are legit Las Vegas wholesalers, so I'm going to provide a realistic perspective as to why and explain how I know.
Experienced wholesalers don't need to build buyers lists and frankly most aren't interested in adding anyone to their buyer list. Why? They have established a limited amount of reliable buyers that pay top dollar, and it doesn't make sense to deal with new buyers that very likely can't compete with the existing ones - they'll just eat up valuable time. These wholesalers don't post deals publicly or blast out to large buyer lists because there's no need. And this is why most are unaware that there are plenty of local wholesale deals going around every single week.
What are the attributes of their buyers?
- Respond very quick
- Can close with cash as quick as needed
- Don't need to view the property in person to make an offer
- Don't care how much $ the wholesaler makes
- Stay true to their word
- Have flipping systems in place
- Don't require large ROI per deal
In other words, they're reliable and pay top dollar.
How am I qualified to know this?
I have a biz partner and when we started wholesaling in Vegas, we blasted out the deals to our combined buyers list of around 150 investors. Most people wouldn't respond, some would just ask questions, some would make ridiculous offers, but a handful rose to the top (see attributes above) so we started working only with them.
We ended up partnering with our best buyer so we could start taking down deals instead of needing to wholesale them. Newer wholesalers love working with us to learn and earn, but even with the backing to take down a deal in days, usually paying more than any other buyer, it's still wasn't easy to convince established wholesalers to bring deals to us.
I hope this is helpful for people thinking they'll be able to come to Vegas and pay a wholesaler 70% ARV minus rehab. It's just too competitive here and it's much smaller than a market like Phoenix (which is also very competitive). If you want to actually get deal flow sent your way, you'll have to accept less profit and prove you have the attributes above. This is easiest for buy and hold investors since they won't have selling costs, but the other options are finding deals yourself, or working with newer wholesalers that haven't (yet) connected with top buyers.
Just to give you a perspective of what it currently takes to compete with buyers in Las Vegas, I used to send deals to one of the largest volume flippers in town that operates in multiple markets and doesn't need large margins, and their offers were never on the same level as the top 3-5 I would receive.
If you are able to get sent a deal from a legit wholesaler, you better analyze right away, make a legitimate offer with thinner profit margins, and follow through if it gets accepted.
This post isn't meant to deter anyone. I just wanted to share a realistic view that I don't ever see mentioned. Hope the info is useful and feel free to ask questions.
By the way, the LV metro area also includes Henderson, North Las Vegas, Boulder City, and some people extend to Pahrump, Mesquite and a few others.
Happy investing!