Anyone here still getting wholesales done?

Question

After reading David's Frustrations thread a few weeks back, I've been thinking about wholesaling, and seem to have found even more discouragement. I think this can all be washed away if someone can tell me that they have been doing wholesales recently. Because otherwise I'd rather focus my energy somewhere else that might be more productive.

So, what I want to know is, have you done any wholesale deals recently? If so, where at, and how many in the past year? I just need some solid proof that it's still getting done and that I'm not wasting my energy chasing after a mirage.

Ryan Webber · Answer

I did a wholesale deal last week and I have one scheduled to close for next week.  I would guess I've done about 30 or so in the last 6 months.  Which for me was a slow down, but the viability of the business is definitely still there.

The market has slowed down, but there are always deals to be had and there are always buyers to buy them at the right price.  Finding the buyers is directly proportional to the price you are offering and the strength of your network.  If you want to see buyers come out of the wood work, offer a deal at a smoking price and you will see that they're still there.  Definitely not as many as two years ago, and the numbers on the deal have to be that much better, but investors are still out there.

Now what that price is for your market is something YOU will have to figure out for yourself.  Over the last 6 months I've dropped 10% off of my normal offers across the board.  In my area normally selling a property at 70-75% of ARV minus repairs would bring quite a few buyers, but I'm finding that I need to be selling them at 65-70% of ARV minus repairs to bring in the same response that I'm used to.  I'm also dealing with less of an investor pool so I have to factor that in too.

My area is still fairly stable so I would guess that in most other markets you will need to be drastically lower than my numbers to be moving property quickly.

Jorge Caicedo · Answer

they're pretty nonexistent here...

Sean L. · Answer

I have had a tremendous wholesaling business utilizing the Detroit market the past 6 months. In my opinion, there are literally thousands of deals out there for whoever wants to take action and begin wholesaling.

See you at the top.

Will Barnard · Answer

I have buyers if you really have a deal.
You can absolutely make $ with wholesale deals. Do not give up. It is a viable starting strategy.

Jeff NA · Answer

Do you mind me asking how many wholesale deals you've completed in the past 3 months? 6 months? I'm looking for solid proof, numbers, and I'm curious what those numbers are. If I work hard, does that mean I'm going to complete one deal every six months? Is it that hard to find a buyer?

Andrew Massaro · Answer

Yes.  I had two student closings last week, and expect two more next week.  Not going to lie, they aren't nearly as prevalent as in the past.  However, you can still flip houses and make money in wholesaling.  The key is to have real cash buyers in place, ready to pull the trigger.  Finding the deal is easy...