Metairie, LA · Member since 2008 · 165 posts · 1 vote
In my studies on wholesaling, I've come to realize the sellers who're desperate to sell really aren't that plentiful, especially in Louisiana.
I'm starting to wonder if all the fabulous money made in wholesaling as touted by these courses is really just a ploy to sell books. I belong to our local Reia and have yet to meet anyone who's even wholesaled a deal.
Starting to wonder if wholesaling is a myth concocted by shrewd marketing experts..... I say that because these people who supposedly pull in 5 figure checks just happen to "come across" a motivated seller or "stumbled upon" a rehab and the seller couldn't wait to get it off his hands..makes me wonder.....
Whatever you a doing now... Stop It… It is not working...
Find things that you have not done, and try those… You have to look for deals, but they are out there!
Do they make it seem way easier than it is… YES. But they are out there…
You need to have a large pool of buyers… you need end user retail buyers, lease option buyers, traditional landlords, rehabbers, and cash buyers….
By having a good buyer’s pool mix… You can do a variety of deals…
You can’t just look for deals with $50k in equity… those are hard to find every day… But if you can sell what you buy, you can do more volume…
I just made this little chart up (below)… anyone care to comment on it?
Equity (Buying this % below market value)
0-10% Very Easy – They don’t have enough equity to sell with a realtor
11-20% Easy – But they must have a need to have a reason to sell fast!
21-40% Easy – But use rehab or short sales to build in this kind of equity.
It always has to be priced as a deal in the “buyers” eyes...
Retail Buyer - Less than market value = deal
Lease Option Buyer – Buy at market value with terms = deal
Landlord Buyer – Good house rent ready less than market value = deal
Rehabber – House will have increased value due to the rehab = deal
Keep looking and learning!
P.S. An investor’s ideal seller is one that “Needs” to sell, not “Wants” to sell. There is a big difference!
Unless you're talking about million dollar houses, I think five figure checks for wholesaling are few and far between. A few thousand is more like it.
While I've not bought any houses from a wholesaler, I'm on several mailing lists. I do see their deals come and go. They do show up at our REIA and describe what they have available. So, I'm pretty sure deals like this do happen.
Anytime someone is telling you about their success, you're going to hear about the best outcomes. You won't hear about the ones that made just a little money, and certainly won't hear about the losers. Doesn't matter if its a real estate guru, stock trader, or small business owner. Wholesaling is a business just like any other. You'll have to work hard to find your sellers and your buyers and to hook them up. It certainly not a matter of just sticking out a few bandit signs, putting up a web site, and waiting for the checks to roll in.
well i hav e a list of 30+ buyers. I put ads on Craigslist, have access to the MLS and put ads on Backpage. My ads are to the point and professional, the few calls I did get, the selllers weren't motivated enough.
That's beyond my control and if there are any La. people on here, you know how flaky these buyers can be. 'Oh yeah, I'll take a look at it" or "send me what you got" etc....and nothing comes out of it. Even if you have the property under contract and send pics, they still won't follow through. I'd like to take some of these 'GURUS" on here and challenge them to wholesale 1 deal in Louisiana using a motivated seller. I have no money to pay them since I'm broke, lol but it'd be interesting to see what they do
Maybe I should move to Tampa, lol b/c apparently that's where the money is being made by Preston Ely and his gang...it's certainly not being made here.
Please forgive me for laughing, jc, but you have no idea how funny your post is.
Of course super deals are far and few between. If 20 people each made them 5 times a week, that would become fair market price and they wouldn't be deals any more.
Yes, I have bought houses with $100,000 instant equity. But those don't come along very often, and not one of them came off of bandit signs or yellow letters. (in fact 75% of them come off the MLS.)
I am buy and hold, so I never wholesale anything. I tend to be really happy if I can find a house that meets all my criteria for a good investment for 20% off the top dollar price. And even those deals aren;t all that common.
At 20% off, there isn't much room to wholesale. A couple of commissions and a couple of sets of closing costs and you'd be pretty close to the line.
You'd have to be getting them pretty cheap to resell them to some one who is also going to make a bundle on them. The guy who does the work and takes the risk is going to be the one to make the lion's share, and that isn't you if you are the wholesaler.
[[[[......I'm starting to wonder if all the fabulous money made in wholesaling as touted by these courses is really just a ploy to sell books....]]]]]
Ya think???
If they could make easy endless millions doing their real estate trick, why are they out giving sales seminars to the marks?
but in La it's easy to get more than 20% b/c of all the damage thanks to katrina. the sellers here are stubborn though..i know a $5k or 7k deal has been done here and there(i'm still working on my first) but, and i don't care what anyone says, wholesaling is easy in theory but difficult in practice..any Louisiana wholesalers on here wanna back me up on that?
While i agree w/ the part about the mind, the rest of the statement is too general.. if i think nuclear physics is easy, that doesn't mean that it is lol
While i agree w/ the part about the mind, the rest of the statement is too general.. if i think nuclear physics is easy, that doesn't mean that it is lol
Ok… I agree… But, if you think nuclear physics is difficult, and you CAN’T do it… you are probably right…
But if you feel it is difficult, but think you probably CAN do it… you probably can.
Thinking you can or can’t is really the difference. Your posts sound like you have already decided that you can’t wholesale real estate…
I have reviewed some of your other posts here and found that you are in the Metairie area…
I found that there are currently over 850 Properties listed on Realtor.com which means there are more like 1000+ in your local MLS currently for sale.
With a Population of 146,000 and 455,000 in your County, there are more deals in your area than in many areas in the country.
I also noticed that you have said…
“I'm just an admin asst but I've been out supervising the guys and learning about labor and costs. I've been w/ these guys for a couple of months”…
A couple months is just not enough time to learn and perfect any part of Real Estate Investing. I would suggest that you keep at it… Wholesaling will work for you once you have it figured out.
You have said “I know how to wholesale”… and… “have yet to meet anyone who's even wholesaled a deal”… and… “and I know at least a couple dozen”…
So you know a couple dozen local wholesalers and you have not met anyone who has wholesaled a deal? Well, then you may not be able to learn from these folks…
I also know a couple dozen wholesalers, and they wholesale a couple dozen properties a month…
Wholesaling does work… Like anything it takes a positive attitude, and a desire to make it happen. You must have the experience and know how to find, sell, and close the deals.
well first off let me clarify..my wholesaling is a myth" line was a bit tongue in cheek..Eric, you misunderstood me, what I meant was is that i know people who are wholesaling BUT it's maybe a deal here.. a deal there..which i wouldn't even mind..i also said of the wholesalers i know, 1 to my knowledge has done $15k,(at least that's what he told me) many of them aren't. i go to the REIA meetings and they have wholesalers practically begging for buyers and it's no go..and these deals aren't bad deals..they have equity and are at a reasonable purchase price..what many of you on this board don't understand is the way people are here..especially buyers..many are flaky, the few who aren't are too busy..i can read books on wholesaling all day but if the buyers aren't interested..forget it..plus from what i'm being told wholesaling is pretty much dead in the water w/ this market and yes i have access to the mls and realtor.com but a these props are agent owned and my buyers won't touch a Realtor owned property......try again fellas
I also know a couple dozen wholesalers, and they wholesale a couple dozen properties a month…
no way...if that's so, do they have a life? 1 is hard enough unless maybe these guys are partnered w/somebody..show me 1 person who does 24 deals amonth and i'll show you someone with no life..by the way that's not meant to offend anybody, i apologize if it does
...many of you on this board don't understand is the way people are here..especially buyers..many are flaky, the few who aren't are too busy..i can read books on wholesaling all day but if the buyers aren't interested..forget it..plus from what i'm being told wholesaling is pretty much dead in the water w/ this market...
...and yes i have access to the mls and realtor.com
Ok. You must be right… Since wholesaling is dead in your area (of almost ½ million people), and there are no buyers, and with 1000 homes currently for sale on MLS, I am sure there are no motivated sellers… so you may want to look for another type of work…
also Eric, you're going by general numbers, you'd have to be here to really understand how it is..also there's no way 1 person does 220 deals a month and have a life..hell, most deals take close to 30 days to close..
i know i'm sounding like a contrarian but wholesaling is not what the gurus claim it is..which was the basis of the topic in the first place..and once again, i don't think wholesaling is a myth..just a bit of my weird humor on display..
and yes I have asked for help on craigslist and the local REIA board..how many people came forward? 1 actually and even she's hard to get a hold of..welcome to La. guys
Thanks… And again, I still think there must be a way... I just don’t believe that it can’t be done there... It just may take a different twist to make it work.
This has been a good thread... But I am out of here.
And yes... If I am out that way, I will take a look for myself.
flipper maybe where you're at 220/mth is doable but no one here is remotely close to that. also let's say above average wholesaler gets 100 leads /mth. of that 100, maybe 10 will accept the offer and of that 10 maybe 5 will close. if you're closing 220/mth, tha means you're taking roughly about 4400 leads a month..you must have help b/c Superman couldn't do that..do you have a partner? i'm sorry, i don't see it, unlless you have a marketing system from hell..if you can do that though, thar's great..
James my name is Jorge and from what you're telling me, i can see where what you're doing is attainable, however living here and trying to go tat it on your own to do a deal here or there and then to need help, ask and not got any, no book or course can solve that..myself I think it's a Louisiana thing,i can promise you people here are way more lazier than in Ca where i'm sure the work ethic is much higher..no offense to any other La people on here btw....