Is Wholesaling Still Viable?

Question

I've been a fix-and-hold guy for a few years now, exclusively, and haven't flipped anything (contracts or properties) for at least that long now.

In considering re-entering the w/s niche, I wonder, not rhetorically, if it is nearly impossible now to find deals that buyers can't equal with a generic mls search for bank-owned inventory.  Further, is the investor-buyer volume substantial enough that wholesaling has viable exit/profit?  I ask these questions sincerely, unsure of the current viability of getting in and out of a deal expediently and profitably!

Thx much for the feedback folks!

Vincent D. · Answer

Obviously i meant TAX rolls, but i think you are too busy coming thru posts looking for opportunities for self-aggrandizement to consider this. In fact, i just finished tweaking my 31sfr, $1M plus portfolio rent roll and it was prevalent on my mind when posting my wholesale comment.

Account Closed · Answer

If you do a little research on what sells and to who, you'll be able to figure out who buys what and for what price.

I have more far more buyers and buyers agents that would take anything I would bring them than I've ever had before. Finding the deals is still the challenge.  The MLS in my farm is very competitive so I work every other angle I can think of.  The small rehabbers, the ones who do a few deals a year, are especially challenged to find deals with a big enough spreads.  I suggest figuring out what kind of deals buyers want and need where you are and go after those.

It's kind of a joke at my house how many rehab guys in my farm are driving around in white trucks looking for their next rehab deal but don't have the first clue how to find one.  They make offers, too little and too late, on the MLS.  They call a few FSBO ads.  They have cash and crews but are truly clueless how to get a deal.  Maybe there are some of those in your area?

Steve Babiak · Answer

How did you get the rent rolls if you weren't already in contact with the owner?  And why would you expect to see a rent roll on vacant houses?

Nicole Williams · Answer

Vincent D,
Personally, Ive been having a lot of sucess wholesaling. Im based out of Mi, and have been selling properties up and down the East Coast. I think it is a great idea that your getting back into wholesaling. We all know Real Estate rolls in tides and its smart of anyone who depends on Real Estate as the bread and butter to diversify your interest in Real Estate. 
Best of luck to you!

Michael G. · Answer

I think Anson hit the nail on the head. Its dealflow that determines the success.

Its purely a numbers game.

Getting buyers is not an issue especially if you have buyers that have deep pockets you'll probably find you deal with a handful of buyers most of the time.

I think the marketing approach is important. Some people dont like bandit signs but I've wholesaled 2 deals @ $5K each in the last year using bandits.

My other wholesale deals were letters to estate administrators. They were not yellow letters but they worked.

13 leads seems like barely scratching the surface but let us know the outcome of your yellow letter campaign and follow up calls.

Greg P. · Answer

Vince, can I ask why you would want to go through the grind of wholesaling again?  If you own 30 or so properties, isn't it better to keep buying more rentals and collect cashflow?  I'm asking because I've thought of going into rentals because I am being burnt out from wholesaling/rehabbing.  Does the money not come in as good as people think when renting?  Thanks for the help.

Vincent D. · Answer

I collected 13 vacant house addresses and searched the rent rolls for ownership.  9 of them are still non-bank, so I ran skip trace reports for each.  Today I'm sending out nine yellow letters and will be making some phone calls.

Is there more that I should be doing?

What success rate can realistically be attributed to a thorough effort?  10%?

Help me out folks - a bit of success here could truly enhance my career and surrounding dynamics!

Thanks!

Vincent D. · Answer

thanks all for the feedback - i'm feeling that eager surge again!

my best method has always been vacants skip trace w/ yellow-letters and persistent phone calls.  can't wait to blow the dust off.

I'll do some backing-in to see who buyers have been, if I can.  suggestions for mining this data are welcome!

Jimmy C. · Answer

Its still great as always.  Indy is a good area too I hear. And since you have buy and hold exp, you should have the ability to add value to your end buyers. Simply use your usual analysis and dd skills.

Mark Berry · Answer

Anson - what is dealflow?