Orlando wholesaling market - drying up?

11 Replies

I was wondering if wholesalers in Orlando have seen a slow down in responses from their marketing, particularly in the 2nd quarter.

Staying constant over here. What about you?

I don't wholesale, but I will say that the emails I am getting from wholesalers as of recent are awful. Leading me to believe that they are drying up. Just today I got 3 emails of "deals" that are on the MLS and are being sent above the MLS list price. Rant begin "I can buy a thousand homes in Pine Hills for $60k or less off MLS, quit telling me you got a killer deal." End rant.

I'm not in Orlando but I am close enough(Lakeland)and I could tell you that there are no real shortages of wholesael deals. But there is a huge increase in demand and in propert values. I have been getting emails from investors asking properties by the bulk. and I am seeing that the common formula just is not working to get a deal. One of the investors off my list told me if it has solid walls and a good roof I don't care what the inside looks like I want it.

I know I am talking more about buyers than I am leads but the point is that there are many leads the competition is ugly. If you ever attended the CFRI then you know that many of the investors preach and practice the Seller Finance niche and all of them prefer to hold properties likthey come across than sell.

Anyone entering the business as a wholesaler was most likely introduced to the business as a get rich quick scheme and over time you will learn that it is possible to make good money wholesaling but close to impossible to make a viable business out of it with out a huge marketing budget. And eventually will have to adapt and adopt the seller finance/lease option strategies. They are so much more effective than offering 50-60 cents on the dollar and insulting someone. With these types of deals you can either flip the contracts, hold them, or rehab them.

Originally posted by @Manny Cirino :

Anyone entering the business as a wholesaler was most likely introduced to the business as a get rich quick scheme and over time you will learn that it is possible to make good money wholesaling but close to impossible to make a viable business out of it with out a huge marketing budget. And eventually will have to adapt and adopt the seller finance/lease option strategies. They are so much more effective than offering 50-60 cents on the dollar and insulting someone. With these types of deals you can either flip the contracts, hold them, or rehab them.

I think Manny is smacking the nail right on the head here!

Wholesaling is sold as "buy real estate with no money and no credit". What they fail to mention is - oh, by the way - it costs about $100 or even more to make the phone ring in most major markets. It's a marketing thing, and soon you find that marketing without money is basically called "Craigslist". =)

I agree with Adam - I am constantly getting emails from different companies trying to sell the same property AND with different asking prices!

I have been wholesaling for two years by doing consistent marketing monthly with good success. The first quarter of the year was good but has since slowed down. Was just curious if others are experiencing same.

Manny- as a FL real estate investor, I'd suggest more caution. Lease option ONLY works with escalating prices. As you know, FL prices don't always escalate. If you get caught with a lot of lease options when the reversal comes again, you'll walk away and lose the option money. It will happen again, only a question of when. If you think that date is far enough in the future, then take a chance. If you have concern about wholesale property drying up, slowdown or reversal in home prices, then tread lightly, imo. Good luck. Rich

@Rick Weese

I am not talking about lease option but actual seller financing were you are taking taking ownership of the deal and the seller acts as the lenders. In Florida there are so many(seems like a mojority) of free and clear owners at ever price point. So they strategies just seem to work especially with everyone looking for a way to finance there deals. Step out and assigning these deals to buy and hold investors has been a game changer for me and has helped me do more with leads that I use to toss in the trash.

As far as wholesale deals drying up not so. Following up on you yellow letters is or should be the norm. No one ever follows up on the first piece of mail they recieve. And there is a cycle you have to be aware of. I have seen here in Lakeland times were the streets are flooded with FSBO signs, Foreclosures, short sales. And then there has been times were no one seems to be selling the MLS dries up a bit.

Try driving for dollars in a side of town you have never been through. Lakeland has a about 10-12 different area codes. I have only drove through about 4 looking for deals. And have not had the need to expand.

I'm also only seeing "deals" from wholesalers that are just mls markups, but that's nothing new. Presumably any true off market deals are held in house or sent to the guys doing a good volume. There must be some money in these re-marketed mls deals or they wouldn't be selling them.

I've never seen a wholesalers deal that I'd actually consider a good deal in Orlando, but that's probably because I've not yet met a legit wholesaler.

This thread sounds like "one trick pony". There is more than wholesaling.

There are always

1. pretty houses with no equity for

a. buying on sub2 - leasing out - RTO - reselling.

b. offering a lease option assignment and getting an assignment fee to a tentn buyer

2. free and clear houses

a. buying on installment sale, get a payment to seller under rent, and renting out and holding.

The key is good neighborhoods, good schools, pretty houses.

Yes I always see mark ups on REO in this area. And just by talking to the sellers I learn quick that they are new to wholesalers and do not know what they are doing. Those are usually sold but by the realtor who has it listed it. True wholesale deals often go quick and you never really hear about them.

I had an investor from my county ask me here on BP "you wholesale here in Polk County? Then How come I never come across any of your deals". And the answer was simple because you are not on my buyers list.

I recently shrunk a buyers list of 70 down to 10 and 2 of those are property manager that do me the favor of blasting this out to there clients so they can get more business.

Wholesaling is a very saturated market just look on BP and you see alot of new investors coming in everday trying to get rich quick. Imagane an out of state owner and how many yellow letters they receive per month or a homeowner in NOD how many postcard the get. The competition has become so serious that I recently looked at a few probates and all of the information is being concealed and the only mailing option you are givin is the address to the Attorneys Office.

They have so many options to consider that the real questions is "what are you doing to stand out from the competition?".

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