How to find GREAT wholesalers...

Question

I know this is a question that has been asked a ton of times. And know that every other buyer in the market has become an investor, as well as many real estate agents that double as both agents/investors. Thus making just about all markets much more competitive to find deals.

In the past I've worked with and done well with a few wholesalers. But it seems that they really come and go and quickly fade away. I know a ton of wholesalers come from seminars and quickly fizzle once they realize that this does require full-time attention.

So the simple, yet complex question is, can anyone recommend where to find legitimate, professional and knowledgable wholesalers in the Los Angeles area?

Thanks...

Lamar Cannon · Answer

I think the reason for the lack of wholesalers that are GREAT is the fact that wholesaling is  usually a bridge. Most great wholesalers will realize that  they have mastered an important part of investing - finding the deal. They then transition into a more profitable strategy , such as flips.  A great wholesaler will pull the correct resources together to make  it happen, and as the wholesaler evolves fewer  and fewer deals be passed on to buyers.

Will Barnard · Answer

That makes a ton of sense J, my only question is, how long should he wait? Take me for example, I have been buying flips in my local so Cal market for the past 5 plus years and I have yet to have what I would constitute a legitimate wholesaler to contact me and bring me a real deal. I have never purchased a wholesale deal simply because of all the deals that cross my desk from wholesalers, none have been within numbers that make sense to me. In such a large market like mine, and as popular as RE investing and wholesaling is, you would think that at least one would have by now.

This begs my question above from your response.

J Scott · Answer

I was going to say the same thing. If you're a serious investor in your market (even if you've only purchased one or two properties), a good wholesaler is going to find you...if he doesn't, he's probably not a very good wholesaler...  :)

Cameron Ellis · Answer

As a wholesaler, I would say a good wholesaler will find you first.

Account Closed · Answer

I'm so glad I found this post. I'm a new wholesaler and like the others, want to be the best. I'm looking to close my first deal by the end of the year. Everyone has made some very helpful notable points.

So it sounds like y'all are looking for:

1. Someone who approaches you (less work for you so you can keep doing the bigger stuff). Plus this lets you know they are a go getter.

2. Trust is a must and mutual.

3. Someone who will be a long time partner.

4. ???

What else makes up a great wholesaler? What are you all looking for?

Account Closed · Answer

Interesting responses Will & J. I had a couple of wholesalers seeked me out from the county records. I had a couple of wholesalers contacted me from BP. I called bandit signs, but they were newbies. So far, no deals yet. I got one wholesale deal from my loan officer. Other than that, all of my deals came from short sales or trustee sales.

@Will Barnard , when you figured out how to build new construction for $60/sq.ft. in California, I'll pay you to train me. It's amazing what J has accomplished in Atlanta.

Lamar Cannon · Answer

Another reason is wholesalers are usually comfortable with a handful of buyers.  There is nothing like developing that trust with your buyers and knowing they will by everything you have.  Once most have this the buyers added later are word of mouth. I don't know too many people that are increasing their competition by running to their fellow investors telling who they get properties from.

Even though this is the case I would still add @J  Scott  and @Will Barnard   to the list if I was in either market.

Jose Reyes · Answer

Good point. I've seen this happen. But more with Realtors that try and become investors once they've made clients big money and then feel it's simple, so why not. I've witnessed it work for them, and for others, fail miserably.

Also, I've been investing for 8 years. I have had many wholesalers find me, but none that work out long term, and a ton of newbies, fresh out of the investor seminars.

Will Barnard · Answer

Maybe a little J, but I think you are right, this says more that there is a lack of real good ones and I am sure if there were, you would be on the Atlanta list!

Will Barnard · Answer

I am sure you meant to say when I "figure out" and not figured as I have yet to. Building in CA for $65 per sq. is only possible if you are just building garages! $100 per sq. ft. here would be a very low price.

How to find GREAT wholesalers...

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