How are yall finding your leads? House flooded in Harvey, but up til then I was on a mailing list for 2-3 wholesalers. The soggy house issue is getting resolved, so now I'm back to looking through leads.
Anyway, what mailing lists are out there that yall like? Right now, I'm getting leads for Jet, H&L, and New Western but I'd like to expand that as much as possible. Any recommendations for good wholesalers?
Does anyone around here utilize an MLS search or other lead generating software? I used Quest through Lifestyles Unlimited for about a month but I'm interested in checking out other options.
Lastly, I wanted to ask about some your experiences negotiating with wholesalers - do you do it, any specific strategies, how has it gone? I spent about 2 months looking at deals before Harvey and I felt like I was constantly finding deals that were pretty "thin". Do wholesalers tend to price their deals with room for negotiation? Is the industry standard a no-haggle, take it or leave it price? I want to form solid relationships and I don't want insult anyone by trying to penny-pinch but I also want to try and get the best deal I can.
The best way to get on buyers lists is to attend some of your local REI meetups. The next is to find wholesalers who are actively marketing. Looking for their Craigslist ads, bandit signs, and LinkedIn searches have each been successful for me. Rather than contacting them with a house for cash, I just asked to be put on their buyers list.
Pricing is different for every wholesaler, not just because of margins but also because of the of the wholesaler's ability. By knowing your comps and rehab costs, it should be very clear how realistic the listing price is. If unrealistic, by providing your comps and costs you can make a realistic offer without insulting the wholesaler.
If this has been helpful, please check out my profile!
Good questions and concerns which many Houston investors have these days!! As you said, those 3 are the big wholesalers in Houston rules the market without much haggling benefit for investors. But other than that there are lots of small wholesalers which many investors build relationship in long term by working with them or meeting them in meet up groups. You have to work towards it. Sometimes they don't want to share because of losing deals.
I work with many small wholesalers and even big ones you talking about as an investor and also investor's realtor. As @Eric Ducommun said there is no set rule on bargaining or negotiating. It's hard when there is no supply in the market and depends on areas too. But if you really think it's good deal by looking at various numbers, go for it otherwise just let it go if they don't budge, they will surely come back if they don't find investors. They have to sell to some investors, no good investor will buy if they price it too high.
Hope it helps.
@Eric Ducommun - thanks for the info, especially the craigslist and linkedin tips. That's an easy way to get myself on some more mailing lists :)
Dipped into your profile and I'm about to watch your video on portfolio loans, something I've been wondering about and intending to get more info one. Thanks for giving back to the Newbies!
@Vijaianand Thirnageswaram - that absolutely helps. Its good to hear that there are smaller wholesalers out there. My wife and I are still trying to make all the networking events we can and I'll make it a focus to try and meet some of the smaller players in this market and get those relationships started!
Thanks for the feedback guys!
@Travis White There are lot of newbies in the market, marketing themselves as wholesalers and trying to build their buyers list. It's not bad thing but make sure you talk and get to know and find out how many deals they sold etc., Do check my profile, I am Investor's Broker who loves to mentor new investors.
@Travis White I am further behind you hehe. What are the full names of these wholesalers? Jet? H&L?
Thanks! Hoping to meet you in a REI Meetup!
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