Wholesaling Right Now

8 Replies

Hi everyone,

I’ve recently started considering trying wholesaling. I’ve never done any type of real estate investing deal.

I wanted to ask the BP community: how is the market right now for wholesaling? If I were to find some distressed homes that were willing to sell, would I be able to find people that are interested in buying the property from me in the current market?

Thanks ahead of time for your input.

- Steven Cobb

Hey Steven,

I agree with @Nick C. - deals are harder to find than buyers. A good deal will almost always bring the buyer. 

However, when you stated "considering trying wholesaling" I got a little nervous for you. If you're going to "give wholesaling a try" or "consider it" then you're probably going to fail. 

Wholesaling is tough. You must be a good marketer, you get a lot of no's and are always in negotiations. 

If you want to succeed in wholesaling then your best odds are jumping in with both feet. 

Best of luck!

@Steven Cobb I want to second @Cameron Tope . People post about wanting to become wholesalers because they read that it requires little to no money but it’s one of the hardest ways to get started. Do you have sales/marketing experience?

I’m looking for off-market properties myself and was told to “die in a fire” last week for sending someone a fairly innocuous post card. That sort of thing doesn’t bother me because I’ve always been in sales, but are you okay with it?

Do you know how to quickly/accurately run comps? Will you be able to speak confidently to potential cash buyers about the property?

Building a real wholesale business takes A LOT of time, effort and rejection. No way around it.

Originally posted by @Steven Cobb :

@Cameron Tope @Daniel Haberkost Thanks for the input. Much appreciated. I am hopping in. I've been driving for dollars a lot and have a long list of addresses to get started with. I'm about to look up the owners address and send them a mailer. Thanks again for the responses.

 Good luck, you can make it happen if you want it!

@Daniel Haberkost You asked me before if I know how to quickly/ accurately look up comps. I have an idea, but don't know exactly how to execute it. I know that I could use real estate websites like zillow, redfin, or realtor.com and use the filters. But I'd have to play with it a bit. Do you have any insight on how to make sure the comps I pull are accurate?

Originally posted by @Steven Cobb :

@Daniel Haberkost You asked me before if I know how to quickly/ accurately look up comps. I have an idea, but don't know exactly how to execute it. I know that I could use real estate websites like zillow, redfin, or realtor.com and use the filters. But I'd have to play with it a bit. Do you have any insight on how to make sure the comps I pull are accurate?

 Great question, 

Last week, I was running the numbers on a simple 3/2 surrounded by nearly identical houses. On Zillow you can easily pull up "sold homes" on the map and on the same street as the house in question there were several sales from within the last several months. A house like that is extremely easy to comp and can be done on Zillow. 

On the flip side, I'm going to look at a house today that's in a somewhat odd neighborhood of both old and new construction with few recent sales and numbers all over the place. I'm still going to run my own comps, but I'm also going to ask a realtor friend of mine to pull comps on the MLS and give me his opinion. He's far more patient and detail-oriented than I am and I trust his analysis more than my own. He'll take the time to help me because I've developed a working relationship with him over the last several years and I send clients to him regularly.

Propstream is also very helpful for comps but personally I like to have someone a bit more pedantic than myself run the numbers for me if it's not easy to comp. 

So to answer your question a bit more succinctly, Zillow is great for easy comps in fairly uniform neighborhoods but when it's a bit less simple I like to consult others who are more skilled/experienced than myself.