Starting out in Washington, Looking to Pick Up Pre-Arranged Deals

[Penny Queen]

My apologies for being too new to know if this is a dumb question or not.  From what I have gleaned, wholesalers are deal-makers, and they hand a lot of these deals over to investors for a cut (apparently, not of equity in Washington).  I am looking to assume some lower rate mortgages and am trying to find the deal flow mecca.  Where is that or do I have this wrong?

[Lydia R.]

Quote from @Penny Queen:

My apologies for being too new to know if this is a dumb question or not.  From what I have gleaned, wholesalers are deal-makers, and they hand a lot of these deals over to investors for a cut (apparently, not of equity in Washington).  I am looking to assume some lower rate mortgages and am trying to find the deal flow mecca.  Where is that or do I have this wrong?

 Well....you're kind of right. Wholesalers are deal finders. They dont actually close on the deals and they do not get a 'cut'. Wholesalers find the deals, put them under contract, mark them up slightly and then sell the contract to an investor who will actually close on the property and implement their desired exit strategy. 

If there is a deal flow mecca and you find it before I do please leave a trail of breadcrumbs so I can find it too. Thats not really how this works. If you are wanting deals to sub 2 then you have to go out there and find them. You will have to shake a lot of trees and kiss a lot of frogs. Its an uphill battle because you first have to explain what you are trying to do and how it works. But it happens everyday. I know many investors whose only acquisition strategy is taking over mortgage payments. 

The best candidates are going to be owners with low equity but great interest rates so pretty much anyone who purchased in the last 5 years. Preforeclosure owners who are upside down. Short sales. Those are the types of leads you should be looking for. 

[Julien Jeannot]

I agree and I know there is a lot of competition for those deals. Best to start networking with local wholesaler.