Insurance Broker · Riverside, CA · Member since 2015 · 10 posts · 2 votes
I'm trying to grow my buyers list. I've been attending auctions and passing out cards that point investors directly to my buyers sign up page. A few were very receptive and took the card. But I noticed a TON of those who were bidding wouldn't even take a card, citing "their company" won't do business with me, or "they work for a huge wholesaling company".
Question: How in the world can 1 person compete with conglomerates that literally have agents at every auction, cold calling every possible listing, etc.?
Who are these companies? Seems like they will buy anything. The margins are miniscule at best...I just don't see where small wholesalers fit in...
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
10y
Why compete at auctions? Good deals are made, they are rarely found.
BTW, you do understand that your insurance license is at risk if you do wholesaling as a business without taking title, right? Protect your license, get a legal opinion not a guru opinion. :)
Investor · San Diego, CA · Member since 2015 · 22 posts · 13 votes
10y
Hey Frederick Woodfin Jr. I think I'll take a crack at answering your question with what I've learned thus far. The "little guy" serves just as much purpose as the big companies in wholesaling. You have to remember a lot of what we do has to do with timing and follow up. The bigger companies may have more reach when it comes to leads but if they call on the wrong day (i.e. Seller isn't motivated) and you call on the right day, who do you think will get the deal.
I've never heard of any conglomerates who focus on wholesaling but in San Diego, I know of a few companies that are heavy hitters. Regardless, there are deals everywhere for a solopreneur and bigger companies. You just have to keep pushing and be prepared for when the phone rings with a motivated seller on the other end.
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
10y
Why compete at auctions? Good deals are made, they are rarely found.
BTW, you do understand that your insurance license is at risk if you do wholesaling as a business without taking title, right? Protect your license, get a legal opinion not a guru opinion. :)
Insurance Broker · Riverside, CA · Member since 2015 · 10 posts · 2 votes
10y
@Matthew Brown - Thanks man. That makes total sense to me.
@Bill Gulley - Im not competing for deals just going so I can meet legit buyers face to face. Some of these people have a wealth of knowledge to share and are always looking for deals. But some have obviously tried to crush my hopes of getting deals by flexing large corporate muscle. Thank you for the licensing tip. I will look into that ASAP!
Funny thing about state licensing laws, they usually don't allow someone who breaks a licensing law to hold any state license. In other words, get busted for dealing in real estate without a license you might be kissing the insurance license goodbye.
As long as you close a deal and then sell it, even minutes latter, you will be in title and not subject to brokering. If you simply assign contracts you can get nailed for brokering.
Andrew, you can sometimes bump into an unknowing seller and think you have a deal, or, get a family deal. I've found that 3 out of 4 of those unknowing seller types bump into problems when others find out what Uncle Ben or Granny is doing selling the homestead. One of my funniest stories is where I obtained a one half undivided interest to force sale, I was quickly dealing with a new owner who was an attorney. Okay, I still won, but point is, stick with the rules of the game, deal fairly, if you don't you can get hammered talking Granny into 50% of the value.
Now, if Granny begins at market value and through terms and negotiations that are well founded you end up at 50%, then all is usually good. Good deals are made they are rarely found. :)
Real Estate Agent · San Antonio, TX · Member since 2017 · 523 posts · 362 votes
8y
@J Woodfin I agree with the others auctions are not usually the best place man. You need to drive around and find run down properties, write down the address and skip trace the owner. Reach out to their relatives or them personally on facebook or via phone. Be personal you aren't some huge corporation trying to steal their house. You are a humble local investor trying to help solve their problem and make a living. Your "smallness" and lack of size is a huge asset. You are a person who will work with someone side to side, they can call you and speak to you personally instead of calling a main office building and speaking to a different person each time. Don't be so negative, think of how can I do this on focus on solutions not on problems. Good luck!