Real Estate Wholesaling Questions & Answers

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Karl Washington
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Finding a buyer first?

Karl Washington
Posted Aug 30 2022, 07:02

Hello,

I'm new to wholesaling. Just learning at this point. Is it okay to find a buyer first? What happens if you get a property under contract but aren't able to find a buyer?

Thanks for your help

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Jim Pellerin
  • Real Estate Coach
  • USA
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Jim Pellerin
  • Real Estate Coach
  • USA
Replied Aug 30 2022, 07:09
Quote from @Karl Washington:

Hello,

I'm new to wholesaling. Just learning at this point. Is it okay to find a buyer first? What happens if you get a property under contract but aren't able to find a buyer?

Thanks for your help

 @Karl Washington a lot of wholesalers say "if you find a good deal, it's easy to find a buyer". I prefer to find buyers first, for 2 reasons.

1. You are looking for properties that you know your buyers will want 

2. It's less stressful knowing you have buyers waiting for the deals you are looking for.

If you happen to find a deal that none of your buyers want then you could always joint ventuire with another wholesaler

so your first 2 activities should be 

1. build a list of buyers

2, build a list of disposition wholesalers

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Scott E.#2 Rehabbing & House Flipping Contributor
  • Developer
  • Scottsdale, AZ
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Scott E.#2 Rehabbing & House Flipping Contributor
  • Developer
  • Scottsdale, AZ
Replied Aug 30 2022, 08:13

As a wholesaler ideally you should have a dozen buyers or more "in your back pocket" when you're searching for deals.

If you get a deal under contract where the numbers actually work, you'll probably be able to scramble and dig up a buyer before the end of your due diligence window, but that type of uncertainty can be stressful.

Start building your buyers list now. Learn what those buyers are looking for. Keep an organized list. And follow up with those buyers often to confirm they are still actively pursuing deals.

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Andrew Syrios
  • Residential Real Estate Investor
  • Kansas City, MO
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Andrew Syrios
  • Residential Real Estate Investor
  • Kansas City, MO
ModeratorReplied Aug 30 2022, 11:17

It's good to find potential buyers (i.e. build your buyers list) but virtually no one is just going to take your word for it that the property that you will get under contract is going to be a good one. They'll want to see and evaluate the deal you bring them before making an offer.

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Karl Washington
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Karl Washington
Replied Aug 31 2022, 04:39
Quote from @Jim Pellerin:
Quote from @Karl Washington:

Hello,

I'm new to wholesaling. Just learning at this point. Is it okay to find a buyer first? What happens if you get a property under contract but aren't able to find a buyer?

Thanks for your help

 @Karl Washington a lot of wholesalers say "if you find a good deal, it's easy to find a buyer". I prefer to find buyers first, for 2 reasons.

1. You are looking for properties that you know your buyers will want 

2. It's less stressful knowing you have buyers waiting for the deals you are looking for.

If you happen to find a deal that none of your buyers want then you could always joint ventuire with another wholesaler

so your first 2 activities should be 

1. build a list of buyers

2, build a list of disposition wholesalers


 Awesome thanks for help 

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Jerryll Noorden#1 Real Estate Wholesaling Questions & Answers Contributor
  • Flipper/Rehabber
  • Wilton, CT
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Jerryll Noorden#1 Real Estate Wholesaling Questions & Answers Contributor
  • Flipper/Rehabber
  • Wilton, CT
Replied Sep 1 2022, 11:28

You don't need to find buyers first. AT ALL.

You just need to find a good deal. I do this all the time, so no one can tell me that you need to find buyers first.

I would arguably question any buyer that signs up to your list when it is obvious you have never done a deal yet. Most likely those "buyers" are hungry desperate wholesalers trying to JV with you.

Nahhh...

Go get your homerun deal and the buyers will come bro!

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Farshid Khazaei
  • Wholesaler
  • Tampa, FL
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Farshid Khazaei
  • Wholesaler
  • Tampa, FL
Replied Sep 1 2022, 13:50

@Karl Washington

My suggestion is to first complete the list of your buyers and see exactly what they want.

When you find a buyer, there are people who have good deals on Facebook and you can easily make a JV with them.

actualy you hitting two birds with one stone.

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Replied Sep 3 2022, 00:08
Quote from @Scott E.:

As a wholesaler ideally you should have a dozen buyers or more "in your back pocket" when you're searching for deals.

If you get a deal under contract where the numbers actually work, you'll probably be able to scramble and dig up a buyer before the end of your due diligence window, but that type of uncertainty can be stressful.

Start building your buyers list now. Learn what those buyers are looking for. Keep an organized list. And follow up with those buyers often to confirm they are still actively pursuing deals.

Thank you for this, I have had the same problem i got alot of contracts but it has become stressful, so i am going to take this advice