Solid direct mail companies and staying local?

Question

Hi, I've been absorbing a ton of great information on BP and it was been an amazing resource.

There were a couple of items that I was wondering about that haven't really been covered yet, as far as I can tell:

1) Is it best to wholesale locally where you live or is it possible to do in a city that's 1.5-2 hour drive away? The area I live in has very inflated housing prices (Northern VA) and I'd feel more comfortable starting somewhere that the housing is more reasonable, like Richmond, VA or Henrico, VA.

2) If a wholesaler can't locate a buyer before closing and has to close on the house, what happens then? Do you immediately put it on the market. Are you stuck with major losses because you have to pay closing costs and carrying costs? I'm curious about that.

3) To complete a wholesaling transaction, does one ONLY need a title company and NOT a settlement company? Is it the buyer who only need the settlement company?

4) Finally, can anyone recommend a good direct mail company to work with?

Thanks very much and feel free to contact me. I'm excited to network with people on BP.

Kenneth Z. · Answer

If you are serious about getting into wholesaling I suggest build a buyers list first. There are plenty of blogs on how to do that so I won't get into it. Having a buyers list helps in a couple different ways. As you are looking for deals if you have a buyers list you are using the criteria that was given to you buy your perspective buyer. When negotiating a deal that you have found you will feel more comfortable knowing there is a list of interested people that will buy your property. The out-clauses for your contract are nice if you absolutely can't find a buyer however, if you can't find a buyer for your deal it's not actually a deal and your math is off. Talk to the buyers and figure out why its not a deal and what deals they are looking to see brought to them.

Tim Leslie · Answer

You don't have to wholesale in your immediate market. It's easier obviously if you stay in your own backyard but 1.5 hours is still reasonably close. Network with a realtor and a investor friendly title company in that area and they can help you out with the market. The properties I have wholesaled have all been 1+ hours away. Also make sure the title company knows how to do an assignment iof contract. If you can't find a buyer by the closing date you use one of your clauses in your contract. Whether it's an inspection clause, pending partners approval, etc. The only thing you are out is time and your earnest money deposit.

Solid direct mail companies and staying local?

2 Replies