San Francisco, CA · Member since 2017 · 115 posts · 29 votes
I'm starting out in wholesaling and I'm finding myself in this pickle of.... do I go and find a seller first or build my buyer's list first? Or do both at the same time?! Any advice? Thank you for reading.
Also, don't know if this changes anything, but I'm in the SF Bay Area.
@Sasha Josephs that's a question I had when I first started as well. Getting your buyers lined up is a good idea. But also if you come across a deal don't shy away or run from it because you don't have an extensive Buyers list. If it's really a deal, get it under contract for a longer period 30-45 day and market your contract like crazy. You'll have Craigslist, Biggerpockets, referrals, you can call title companies, and even other wholesalers if you have no luck finding a buyer. 50% of a deal by co-wholesaling or joint venturing is better than 0% of no deal. Making a post here to connect with local people in your market is a great way to start! Feel free to reach out if you have any more questions. Best of luck to you!
@Sasha Josephs I would recommend buyers because what if you find a seller today... who does the property go to? Once you find these sellers they will want to sell quickly so it is important to have buyers lined up first.
@Sasha Josephs that's a question I had when I first started as well. Getting your buyers lined up is a good idea. But also if you come across a deal don't shy away or run from it because you don't have an extensive Buyers list. If it's really a deal, get it under contract for a longer period 30-45 day and market your contract like crazy. You'll have Craigslist, Biggerpockets, referrals, you can call title companies, and even other wholesalers if you have no luck finding a buyer. 50% of a deal by co-wholesaling or joint venturing is better than 0% of no deal. Making a post here to connect with local people in your market is a great way to start! Feel free to reach out if you have any more questions. Best of luck to you!
@Alexander Zurn Thanks for the tip. That's exactly what I was thinking! But then I go back and forth, what if I don't find a deal and I have all these buyer's lined up?
Most definitely buyers. Without buyers you don't have much and will end up cancelling the contract. It's true that you can do a longer contract and most wholesalers do but also most wholesalers fudge the numbers and make the ARV much higher than what it's actually worth or the rehab cost is way too low. True enough it depends on your GC but a good GC isn't cheap at all. But that doesn't mean he has to be expensive for no reason as well. Also see if you can partner with a realtor who knows the investing side of things and won't get annoyed by constant asking of sold comps.
@Sasha Josephs good buyers/investors that you want on your team will not be pushing you for a deal. For up front with them. Tell them you are looking and when you find one you just want to have some one that would be interested. This could be a good influence towards finding a mentor as well.
@David Walls brings up a good point, don't run away from the deal because you don't have buyers. Heck, maybe you'll get your buyers list through finding great deals (aka sellers).
The more you ask and read about, the more you'll develop a plan of action that suits you.
@David Dachtera Thanks David. Good point. Is there risk here of being a real estate agent when you do this, though? I don't have my license or plan to get one.
For the entire post: It seems like the vote is for buyers so I think that's what I'll focus on. This was very helpful! Yay BP!
Some states misinterpret selling your position in a contract as reselling the associated asset. Although it's wrong, the courts seem to be upholding that misconstrued notion. Not much you can do.
Just be aware of the legal environment in your state, and make sure you market your position in the contract and not the property itself.
Find deals first. It is easier to find buyers than sellers. Once you get a contract on a property go to the MLS and find all the cash buyers in that neighborhood for the past 3 years. If they are already buying in that neighborhood then they may like your deal if it is good enough.
Also there are programs you can subscribe to get a list of cash buyers all over the country.
I am here in Ocala, Florida. What are the the programs for the buyers? I would like to get started and jump in. I am now studying to obtain my sales associates license.
Anish Tolia That's something I've been thinking about and have been pondering on how to get hard data. For example, a conversion rate. I'm also thinking of areas just outside the Bay Area.