Wholesaling across a large, rural area?

11 Replies

My friend recently set up some online marketing for me that is starting to develop leads from across the state of Iowa (I'm located in central IA/Des Moines).  This has happened much more quickly than we anticipated. Now I have to figure out how to assess these remote properties' condition and value! 

My original plan was to lock them up with a contract and then find local realtors to help find a local buyer and split profits (or something).  There aren't a lot of wholesalers in rural Iowa either FYI.  I'm not keen on putting something under contract that I don't think will sell. IMHO, its rude to the homeowner. I'd like to find a way to provide them a quick response regarding my interest, then get to work trying to sell it.

I would like to get other's opinions about this approach and hear from those who do remote wholesaling (or other 'true' investing strategies).  Likewise, I'd like to hear from realtors-how can I approach this respectfully and so that I can make the most of their time.

Thanks in advance and regards,
Matt Fisher

To do wholesaling, you need to be able to have a pretty robust list of active cash buyers.  Most cash buyers are only buying in well populated areas.  In your case, that's gonna be Des Moines and Cedar Rapids.

Cash buyers usually want SFRs they can buy and flip quickly, or buy and hold to rent.  This implies a robust demand for housing.  Rural areas don't have that, usually.  And it's super hard to determine comps in a rural area.

I think your ONLY wholesaling opportunity in Iowa is likely in the 2 cities there.  And even there, it will be limited by population, # of housing units, and supply/demand dynamics.

If you find this all to be true, limit your AdWords account to only the "urban" areas there in IA.  You don't want to pay for random leads out in the middle of a field somewhere.

I would disagree about only being able to wholesale in CR and DSM. There are plenty of "smallish" cities in Iowa, and all the rural areas within a half hour will probably be serviced by RE investors of those cities. Dubuque, Clinton, Burlington, Davenport, Bettendorf, Sioux City, Cedar Falls, Ames, Fort Dodge, Iowa City, Council Bluffs are all towns that I am sure have cash investors. It is very easy to find comps in any of those areas. That is kind of like saying that there are no wholesalers in Texas outside of Houston and Dallas. 

Sure, the REALLY small towns (2k population and below) an hour from these places might be hard to do this in (and find comps), but there is PLENTY of ag money sloshing around most of these places, and plenty of investors. In fact, if you find any deals in Jackson, Clinton, Scott or Muscatine Counties, please PM me. I know the area well and am a cash buyer with partners in Eastern Iowa that could help you out potentially.

I would find someone that does rural wholesaling and help them out till you learn the game. Either that or look at the county tax assessors site and see what it says about the property value. That might give you a base "ARV" on the house and land and I would offer $0.50 on the $1.00.

You can also use the county assessors site to look up other buyers of nearby properties and network to find buyers. If any of them own the land but don't live there they might be a corporation that you could reach out to and see if they want to buy. If you find someone I would ask them what they're willing to pay per acre and you can run your numbers that way too.

Good luck!

There are whole sellers on Des Moines.  I am surprised none of them jumped on this.  the advice from the other posts are right.  you need to have a buyer list.  relisting the property without a license is illegal.  there is a post on BP asking if Whole selling is illegal.  I know a few people in the area.  send me a message if your interested.

congratulations on your success in online marketing.  I have been looking into marketing online as well.

Originally posted by @Jonathan Godes :

I would disagree about only being able to wholesale in CR and DSM. There are plenty of "smallish" cities in Iowa, and all the rural areas within a half hour will probably be serviced by RE investors of those cities. Dubuque, Clinton, Burlington, Davenport, Bettendorf, Sioux City, Cedar Falls, Ames, Fort Dodge, Iowa City, Council Bluffs are all towns that I am sure have cash investors. It is very easy to find comps in any of those areas. That is kind of like saying that there are no wholesalers in Texas outside of Houston and Dallas. 

Sure, the REALLY small towns (2k population and below) an hour from these places might be hard to do this in (and find comps), but there is PLENTY of ag money sloshing around most of these places, and plenty of investors. In fact, if you find any deals in Jackson, Clinton, Scott or Muscatine Counties, please PM me. I know the area well and am a cash buyer with partners in Eastern Iowa that could help you out potentially.

Hi;

 I want to start the Wholesaling here in North Iowa.I'm looking for a Friendly Investor OCmpany that make the Double Escrow and Assignments. I don't know why is too hard to find that , here in Iowa.

Thanks

It is very successful in the Quad City marketplace which includes Davenport and Bettendorf. I have seen many people succeed doing it and have also been a cash investor in a couple of deals from a wholesaler. Competition is pretty steep and the people who "buy houses any condition" in our market our pretty common.

Yes, Davenport has a number of both cash buyers and wholesalers. I'm a cash buyer and any wholesaler on here can add me to their list. But, contact me first so I can tell you what my farm is.

Thanks,

Meghan

Hi everyone. Im a part time investor (wholesaling, flips, and rentals) from Pittsburgh who just moved to the QCA. Im looking for a rehab I can acquire immediately.

An old farmhouse that I could gut and rehab would be ideal...but anything with 3-4+ bedrooms would be good. Iowa side preferred.

Any leads? Hit me up!

Thanks!

Ken

So, I just found my BP notification in my junkmail...  Sorry for late responses and thanks for the replies!

@Dev Horn : Your advice about the buyers list is well taken.  I think I need to start to accumulate this... I grew up in rural Iowa and know that even small towns have a handful of folks that buy lots of local houses as Jonathan mentioned.  I am NOT using adwords to find these leads, but some SEO 'trickery'.

@Jonathan Goodes : Before I moved to Des Moines, I worked in Muscatine and had hoped to invest there.  I will let you know if I get eastern IA deals.

@Austin Faux : If you know of people doing rural wholesaling, I'd welcome an introduction. They seem hard to come by (and I was hoping I'd find a few by posting this!)

@Luis Vazquez: I think you need find a good attorney.  They can do this work for you or put you in touch with who they use.

@Michael Pease, @Meghan McCallum and @Kenneth E: I used to attend "Country's" Real Estate Investor Meetup in the QC and was surprised by the number of people working there!  I recently got a deal in Davenport, and worked with an old contact there.  I'd hoped to invest there when I lived in North Liberty, but alas, I'm now in DSM.

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