Hello BP Community! I've been learning about the wholesaling discipline for a couple of months now paying g close attention to topics involving real estate and wholesalingin SoCal. I relocated to SoCal from the DC-metro area in 2018 and reside in the Murrieta/Temecula area. Although I have a foundational understanding of wholesaling, im concerned with the potential for wholesaling in the Murrieta/Temecula area. As such, I've begun driving for dollars in neighboring cities such as: Riverside, Hemet and Perris. Given the high property values here in SoCal, particularly the Murrieta/Temecula area, has anyone had any recent wholesaling success in this area or is it wise to just continue searching for deals in the outlying areas i previously mentioned? Thanks in advance for the insightful feedback and I look forward to connecting with you in the near future.
@Corey Washington Temecula/ Murrieta are considered more outlying areas, they're just nice. In general wholesaling here is hard because sellers think in dollars and investors think in percentages. You'd probably have better luck driving for dollars if a house was unkempt in Murrieta or Temecula than you would in Perris or Hemet, the idea is to find unusually unkempt yards. If everyone in the neighborhood parks cars on their lawn you haven't really found anything.
@Aaron K. Thanks so much for the response! Aside from driving for dollars, are there any other tools that you use to assist you finding potential deals (i.e. Prop Stream)?
@Corey Washington I've never used propstream, what info are you hoping to get from that? There may be a better free option.
@Aaron K. : I mainly wanted to use Prop Stream to locate vacant properties in the locations that I mentioned previously.
@Corey Washington I don't think propstream will have data on whether a property is vacant or not. They almost certainly have data on whether or not the owner lives there, but if they don't it is most likely a rental property that would be occupied. You can also find that info on whether or not the owner lives at a given address on the Riverside County website for free.
@Aaron K. Thanks again Aaron. I certainly don't want to spend money unnecessarily, especially when the Propstream monthly subscription fee is $100.
I've been using REIPro's free trial. That may be a good tool for you to use. I haven't verified the accuracy of the program anywhere except in Riverside but it seems to work well.
@Cole McMath : thanks Cole. I was unaware of this tool but I'll definitely give it a closer look; thanks again.
1. I live in San Diego and its a challenge to wholesale here. I saw a completely messed up house get sold via MLS for more than $1 million.
2. Get Propstream. It’s a must.
3. Be prepared to spend money if you want to be successful. I did Driving for Dollars for a few days out here and the gas money cost me more than a month of Propstream. The difference is I could’ve pulled 10,000 names on Propstream instead of the few dozen driving around.
Luis Samboy: Thanks for the much appreciated advice. With regard to your recommendation of the Propstream platform, I'm nearing the end of my free trial with REI Pro and I'm convinced that I'll subscribe with Propstream.
As far as organization is concerned, are you currently using a particular CRM platform or do you simply use excel to track your activity?
The inland empire has been a thought nut to crack at times. Have considered buying and holding/and renting out those properties until market improves?
Peace and Light Friends.
So @Corey Washington , You are in the right place, asking the right questions. :) I am an Investor/Wholesaler who has been wholesaling in So Cal since last year summer. Southern California is a tough, but the spreads are huge if you get the right deal under contract.
The Inland Empire (Riverside, Hemet, Corona, Chino, Fontana, San Bernardino, etc) are hot markets to wholesale, and Flippers/ End Buyers are buying in these areas. I would advise virtually driving for dollars in those cities if you are having a tough time to get out there. You can use Deal Machine to drive for dollars virtually. The owner is David Lecko, look him up.
You should Definitely get Prop Stream. You will be able to find Vacant properties, MLS listings, Cash buyers, Pre Foreclosures, and many other potential leads.
I agree with @Luis Samboy . Be prepared to spend money to make money. However, don't overwhelm yourself with "systems" until you can close on at least one deal, so that you can fund those systems for marketing.
Hope this helps
@Jucoby Obi Agreed. To clarify. You need to spend money to make money but make sure you’re spending it wisely. The margins are much bigger here but so will your budget. Do as much research as you can. I’m using Podio as my CRM since it’s free but I’ve heard that RESimpli is better (but super expensive). I’m expecting to spend $3000-4000 to land my first deal. Once I land one, I’ll reinvest a large portion of my earnings to VAs and automated systems.
@Luis Samboy Absolutely! I think spending wisely is key. I think cold calling is a great way to minimize costs for newbies and seasoned wholesalers. Direct Mail can get HIGHLY expensive if not managed correctly. Driving for Dollars is one the most cost efficient form of marketing for new investors. I use Podio as well. I also use the old school method of CRM. My operation is not the "BIG" yet so I can afford to spend time doing it that way. I have not looked into RESImpli.
I've hired two VA's out in the Phillipines. The first VA was good, not great. The last one was just NOT READY. So as of now I'm continue to cold call and working on hiring VA's from the western hemisphere. The conversions are far better when you have someone is experienced and the accent is not as thick. It's just true.
My main form of marketing right now is ....
1. Driving For Dollars (Deal Machine App)
2. Cold Calling Lists I've pulled from Propstream
3. About 10 Realtors send me deals every week. Usually on Market, so its tougher to convert
4. Craigslists Posting (Got my first deal through Craigslist, so don't sleep on it) Major Deal by the way. :)
Working on SEO right now as well.