Wholesaling in Southern California

8 Replies

Does anyone whole sale in the Los Angeles County Area?  I've been listening to different youtube videos and podcasts about wholesaling and it appears that everyone does them in other states where there seems to be a bigger  supply of surplus homes and dead and dying areas where wholesaling would seem to work. It would appear that in coastal areas like Southern California where it is so expensive and less supply of homes that wholesaling would be much more difficult.  I could be totally wrong.  I am barley learning about wholesaling.  Maybe it would work in an area like the Inland Empire.  Does anybody have any insight into this? I am looking into getting into wholesaling.  I would just appreciate some wisdom from people who wholesale in the Southern California region. -Thanks 

@Tarquinn Curry I don’t do it but I do remember a frustrated wholesaler (starting out) because he was targeting parts of Irvine and adjacent areas. Basically, places where the odds of finding a “distressed” homeowner was pretty darn low. After 3 months-ish he had barely any calls and “they all wanted retail”. So anyway, not to say that it wouldn’t work in OC or IE but that’s the only anecdote that popped to mind.

Hello friend.  I am a new investor also.  I am going to try and break through the world of Probate in Los Angeles County.  I can say that I personally know some old timer  investors in southern california and they are killing it.  Have been to a ton of free classes and all that and have met people like myself that are starting out.  I tried like 15 years ago and almost made it.  Going to start back up, my plan is to market like crazy and my goal is to get just one solid deal in the next year and go from there,  good luck.

Jesse

Are those old time investors killing it with Wholesaling?

Not to discourage you, but 95% of people that consult me about wholesaling in SoCal end up never completing a single wholesale transaction. I've had so many people have me form an LLC for them, provide them with purchase and assignment agreements for their deals, refer them to wholesale-friendly escrow companies, etc only to never find a wholesale lead in the first place. Just giving you the reality of what I see.

It's not that it's an expensive market, it's not the supply of homes, it's simply that SoCal is an over-saturated market for investors.  You can't really compete with the people that have been mass mailing using thousands of dollars and many years of followup going towards snatching all the off-market deals in the SoCal markets.  Many of them can perform themselves and don't even need to wholesale to an end-buyer, so people in distress prefer that anyway.

I wholesale 5-6 deals a month in LA/OC on top of the ones I keep for myself. Feel free to reach out to me anytime :)

As an agent I get a lot of Wholesalers contacting me and when I have a good deal,... they are the first ones that I send out the opportunity to.  Every year I send out about 3-4 deals that end up getting wholesaled to the flipper.  On top of that I send about 2-3 directly to a few of my flipper contacts.  I'm in OC.

Mr. Curry.  I would guess that he wholesales 4 to 5 deals a month, so that's pretty good.  So it is good to know someone that actually does this stuff.   He buys stuff in bulk so I cannot afford it.  I really wish that I can find a true wholesaler, If I found a property with safe and conservative numbers he said that he would work with me.  I actually believe him, it seems like he wants to give me a push up the hill.  I am a little frustrated because I have all these wholesalers call me with properties,  I turn them down because the numbers are too tight.  I really think that there are true wholesalers out there and they work with their certain group of repeat buyers and work things out (which makes total sense).  I am jumping in with chasing probate leads.  Going to invest a good amount of money on marketing and go for it.  I have a great team that seems like they are all outstanding very knowledgeable people that have experience.  I am fired up, keep in touch!!!  I anyone out there has any advise please feel free to chime in, thanks!!

@Tarquinn Curry    i agree with Max.  The few people that i have talked to who are actually doing fairly decent in Southern California have been doing it a long time and already have a good network built, or are spending 1000s and 1000s of dollars a month on marketing.  We were sending out about 2000 letters a month at one point and our response rate was less than 0.25%.  The few leads that we did come across, we were so far off on what they were asking and what we could buy it for, it was almost laughable.  What makes it worse is that they can probably put their home on the market and get almost what they are asking for (at least in our county). 

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