First step - Finding a great deal or building cash buyers list?

Question

I am new to wholesaling and my #1 priority is letting morals and ethics guide my business while building my reputation. So I ask...

Is it best to first find incredible deals and trust that there will always be someone to jump on them? Or should I build up a cash buyers list first so I can increase the odds of the contract going through and not letting down the seller?

Any and all input is greatly appreciated. Also looking to network with as many people as possible - feel free to send connection requests and message me!

Corby Goade · Answer

This is a common concern for new wholesalers. The reality is, you don't need a buyers list if you find GREAT deals. They'll be knocking on your door, begging for more. Most wholesalers try to sell crappy deals and they think the problem is their list- it's not. Great deals sell themselves and you'll build relationships from there.

Nate Sanow · Answer

A buyers list isn’t worth anything without a deal. I say focus on the deal.

Jon Kelly · Answer

@Sarah Castor put most of your energy on finding a deal or deals.

Simultaneously you should be networking with investors in your market. Why don’t you create a post on Biggerpockets seeking investors in your market. Ask investors what makes a good deal (location, price, amount of rehab, etc.). This can help you fine-tune your search for a deal

Jonathan Greene · Answer

You have to build relationships first which means you are building both lists at the same time. People say if you have a deal, people will find you, but that isn't always true, especially not when you are new and have no contacts. You should spend 6 months making relationships in your wholesale market and surveying who else is doing deals to see what they are doing wrong and how you can do better. If you have deals and no buyers, you have no business. If you have buyers and no deals, you have no business. Build investor and seller relationships at the same time and it all comes together.

Sarah Castor · Answer

@Corby Goade Awesome, thanks again! And best of luck with your endeavors as well.

Corby Goade · Answer

Great question! I am sure your market has a few investor pages- you can start by just posting there and saying that you are working on bird dogging and want contact for anyone interested in off market deals- you'll get lots of responses, mostly tire kickers, but some legit buyers.

The page in my market has tons or real investors and wholesalers sell their deals on the FB page pretty regularly.

Don't forget to get out to some REI meetings and network!

That said, learn your market and negotiate good deals- if you do that, they'll sell, no problem.

Best of luck!

Sarah Castor · Answer

If I have an awesome deal under contract, what would you consider the most effective way to market my deal within the short time frame?

Sarah Castor · Answer

@Corby Goade Thank you so much for your response! I'm sure that this is a symptom of analysis paralysis but I am worried that without a preestablished buyers list, I won't be able to find the right buyer for even a great deal because of the time crunch. How would you recommend finding/marketing to the right buyer in this situation?

Sarah Castor · Answer

Thanks Jonathan! You mentioned surveying what people are doing wrong. What do you think the most common mistakes wholesalers make are?

First step - Finding a great deal or building cash buyers list?

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