Wholesaling long distance, is it possible?

Question

Quick facts about me: I am living in Phoenix till the end of 2011 and then moving back home to Michigan. I am new to wholesaling but its what I want to do and I know REI is my future. I am unemployed (by choice) so I have almost unlimited free time.

My dilemma is this, should I put in all the time and effort of wholesaling here in Phoenix, knowing I am leaving in 10 months, or should I just focus on my area in Michigan even though it would be long distance for a while?

I believe there is no right/wrong answer to this so I would love to hear your ideas or opinions. Thanks!

Anson Young · Answer

I know guys who do this all the time.  With a great buyers list, and access to deals, you just have to put 2+2 together.  What you dont have locally is the ability to walk the property, make notes on condition, etc.

I wholesaled a house last year locally without seeing it physically.  I got it under contract, made a call and it was sold.  I know its not always that easy, but its possible.

Ben Wilson · Answer

JJ - do what you are comfortable with, but I always suggest wholesalers start locally first.  10 months is long enough to get several deals done if you are doing it on a full-time basis.  In my experience, long distance deals are doable, but typically only experienced wholesalers have success doing it this way.  You increase your chances of success when you can meet face to face with sellers, buyers, and other members of your team.

Mario J Perez · Answer

JJ,
If I were you I might try doing a few deals in Phoenix just to get your feet wet. You never know what you might learn. 10 months is long enough for you to put some deals together. Like Laura said, build a buyer's list first so you know who is buying what and where. Get your team together (agent, contractor, title company, ect.) in place. As far as funding, read all about transactional funding here on BP. There a ton of useful information so that you can put your deals together. If you have any questions just ask them in the forum. Good luck and get out there and start making offers. Good luck...

JJ Gernaat · Answer

Chris,
I definitely have most of the people and resources available there. My one question would be about funding, how did you go about funding your deals?

Chris Bruce · Answer

It's definitely possible. I've flipped a few deals virtually without ever seeing the property, the seller, or buyer. The thing is you need to have a few people on the ground in that area that will help you out. Like someone to take pics, put up bandit signs, someone that can tell you the estimate of repairs needed, title company, etc.

JJ Gernaat · Answer

Thanks everybody. The more that I think about it the more I think I should just concentrate on MI. I lived there my whole life till I joined the service so I have 2 good agents, a few different contractors, and other connections already that I can work with. I know the area well. I am definitely going to have to work on my buyers list though.

Laura Alamery · Answer

As long as you develop a buyer's list in Michigan (or anywhere else for that matter), you can successfully wholesale long distance. I would suggest you have a trusted real estate agent and contractor wherever you wholesale as your local "eyes" and point of contact. 
But first and foremost ... have a buyer's list, so you know what your market demands and what type of properties to look for.

Michael Allan · Answer

Concentrate on the markets you know.  You can do business in 2 states, I know many investors who buy and sell in multiple states.  You focus market should be determined by where you can get your good market deals, but also where your buying demand leads you.

Wholesaling long distance, is it possible?

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