Louisville, KY area Investors-Flips

Real Estate Investor · Louisville, KY · Member since 2014 · 8 posts · 0 votes

Question for the Louisville, KY area. Are flippers looking for their own deals from home owners, from home owners with their house on the MLS, or do the majority of the properties come from wholesalers' deals?

I can't understand the concept of why flippers would do deals with a wholesaler and not go out and get their own deals where they could make more money without the middle man.

It feels like this wholesaleing strategy is not panning out well for my dad and I. Also, where are the deals with the $ room to sell to an investor/flipper so they are enticed with a healthy enough profit for them?

Totally discouraged :/

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Michael Seeker

Investor · Louisville, KY · Member since 2011 · 1k+ posts · 1k+ votes

11y

Originally posted by @Suzette Bickers:

I can't understand the concept of why flippers would do deals with a wholesaler and not go out and get their own deals where they could make more money without the middle man.

You make money by going beyond what a normal "flipper" wants to do on their own.

I could make a lot more money on rehabs by cutting out the contractors I pay to do the work. But then I'd have to be over there doing all the work myself and wouldn't have time for as many deals (similar idea with wholesalers). As Clay pointed out, investors who are flipping properties typically don't have enough time to source deals. Their time is spent completing rehabs and they're willing to pay a wholesaler a few thousand dollars to bring them profitable projects.

The less capital-intensive an investment is, typically the more time-intensive it is. Wholesaling is not very capital-intensive but is very time-intensive (i.e. you've got to work hard to make money as opposed to putting your money to work for you).

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Clay SmithBusiness Member
Investor · Louisville, KY · Member since 2013 · 419 posts · 244 votes
11y
Moost successful wholesalers I have met do these things
- 1 or more 2000 piece mailings a month costing about $1k
- Buying a list every 6 months from listsource.com $300-$400
- working local probate leads
- 100 bandit signs every 2 months - $100
- Use podio.com or some other software to manage
- Working Craigslist and other sites for deals.
I would pay a wholesaler or anyone else who had a good deal.
Many investors have full time jobs. They do not have time for 100 calls a week.
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Michael Seeker
Investor · Louisville, KY · Member since 2011 · 1k+ posts · 1k+ votes
11y
Originally posted by @Suzette Bickers:

I can't understand the concept of why flippers would do deals with a wholesaler and not go out and get their own deals where they could make more money without the middle man.
You make money by going beyond what a normal "flipper" wants to do on their own.
I could make a lot more money on rehabs by cutting out the contractors I pay to do the work. But then I'd have to be over there doing all the work myself and wouldn't have time for as many deals (similar idea with wholesalers). As Clay pointed out, investors who are flipping properties typically don't have enough time to source deals. Their time is spent completing rehabs and they're willing to pay a wholesaler a few thousand dollars to bring them profitable projects.
The less capital-intensive an investment is, typically the more time-intensive it is. Wholesaling is not very capital-intensive but is very time-intensive (i.e. you've got to work hard to make money as opposed to putting your money to work for you).
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David Richter
Investor · Highland, IN · Member since 2015 · 60 posts · 21 votes
10y
@Clay Smith & @Michael Seeker I work with a company that primarily wholesales and we are expanding to KY. We currently cover IN, IL, MI, and OH. We do about 250-300 deals a year. We are managing all of our processes on Podio. If either of you are interested in chatting to see if we would be a good fit for each other, just inbox me and let me know. Thanks!
And I totally agree with both of you in the sense that there is a big difference between ROI and ROT (return on time). The wholesaler will really help boost your ROT and in turn the ROI will go up because you are able to get more accomplished.
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Roderick Johnson
Member since 2019 · 2 posts · 0 votes
7y
How often should you send a letter to a prospect. If your going the mailing route.
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