Hello world!! Is anyone doing wholesaling in the (Northern California) Bay Area? I want to give wholesaling a try, not just in the Bay Area but in general. Looking for tips and good advice to get the ball rolling.
Wholesaling is a pretty challenging business seeing as though you're going head to head up against other career-wholesalers. That being said, it's not impossible! I've worked with wholesalers to find properties for my flippers. It's all about finding the deal. Driving for dollars, direct mail, probate, tax defaults, networking, etc. There's a million ways to find a deal, you just need to pick one and get started.
Direct mail direct mail direct mail.
I'm direct mail acquisition machine. I pull assessor data (with a direct link) of the type of properties in the areas I want and send ALL the property owners an offer. I scrub the list to remove things like properties with a mortgage, duplicates, etc. and spend a tremendous amount of time on pricing, because although these offers may be a lot less than retail, they are not out of the question. I explain in my offer letter to sellers that I am a serious investor, not and agent/broker, I pay cash, and are prepared to close as soon as x days.
Then I sit back and wait for the motivated sellers to call us. You can of course edit this model to fit how exactly you plan on purchasing and what specific property type you are looking for. Believe me - it works like a charm. That is how I GET THERE FIRST. By the time a deal reaches the MLS or a lead source, someone else has already beat you to it. Also, knocking on doors (aka "driving for dollars") is an outdated way of doing this and honestly isn't worth your time. It's no longer about possible subject to leads - we now have DATA and computers and direct mail to get there first. Please feel free to reach out to me if you have any additional questions - I would love to help!
@Justin Reed Wow, this is first I've heard (sorry newbie here) about incorporating assessor data into the mailing campaign and to make it more concrete to prospects. Can I reach out to learn more?
First day on here and I’ve learned so much already.
@Chris Aragon learn to value a property and estimate repairs. Negotiation is key, I recommend reading Chris Voss, Never split the difference. Also don't get a deal under contract that is above your MAO, but follow that lead up every month an wait for the sellers price to come down. You can do it, make it happen.
Thanks for the feedback. I'm going to order the book now.
Hi @tim lee I'm new as well. Have you done any deals yet?
@Justin Reed thanks for the feedback hopefully I'll be in contact with you soon.
I will co-sign with everybody else. It is definitely a hustle but can be very rewarding. I think one of the biggest things to have in place is a list of qualified investors ready to go. The key to wholesaling is to go into a cash buy contract fast and assign it to an investor within days of executing that contract. You will also need a great title company that is well versed in wholesaling and/or a great funding source for yourself or your investors. It is a streamline process if your network includes savvy professionals.