Hi there, I just started researching the wholesaling end of real estate, and I'm absolutely obsessed. I have a few questions in mind and hoping someone could help!
What should be first priority, focusing on properties of distressed owners; i.e.: driving for dollars, reaching out on CL or a real estate site for FSOB ETC.? Or, reaching out to create a buyers list? It seems like my main concern is finding a deal and then not finding a buyer. Although I've heard a lot about if the algorithm matches (ARV x .7 - repairs - fee = MOA) then finding a buyer won't be a problem, that just doesn't seem so concrete.
Also, to continue on that point, what does happen if you can't find a buyer? And what's the time frame typically? Is the P and S contingencies in place to protect yourself from such an instance? Or do you go to an attorney and create those contingencies yourself?
I am a very determined, goal oriented person that is ready to make the leap into this space. I appreciate all the responses and value your time so thank you in advance!
Regards, Joshua Wegner
Hey Joshua I'm not very experienced and not a mentor quite yet but from what I've learned is to get associated with your local REIA group via meetup.com/the app version of it. You will find few or a lot of buyers through those groups and also real estate agents can help you make a contract and you could get it approved through a real estate attorney. Also remember that you as the wholesaler, you are trying to find deals for a buyer/get them deals so they can pay you your fee for it and flip it and get their profit, so really focus on distressed properties and most of the time when it's a distressed property it could potentially be a distressed seller which would make them more motivated to sell. Hope this helps!
You will get differing opinions on that topic; do I get the property first or the buyer. Both are correct. Pick the one that you feel the most comfortable with and go for it.
To address your other question: what do you do if you can't find a buyer. Hopefully, you've informed the seller that you will not be the buyer and she understands that upfront. However, if you can't find a buyer. It's usually because you don't have a good deal. Talk to the seller to find out if they are willing to lower the price. Price cures everything. Also, your contract with the seller probably has a clause of some sort that allows you to walk away. Maybe only losing your earnest money deposit etc. It is best to touch base with an attorney so that they can review and approve the forms that you use................Good luck!
Hell yeah dude for sure anytime! All I can say is take action as soon as you learn something new.