I really like everything about Wholesaling, but I am most worried about finding Cash Buyers.
Whether it be before or after finding a Deal, as I hear about both Strategies.
Worrying about finding a Buyer is making it harder to focus on finding and locking in good Deals.
I am trying to forge ahead and see this process through and pickup momentum.
I really don't want to lock up a Deal and then back out just because I can't find a Buyer.
Any Advice and Experience would be greatly appreciated.
The problem is knowing what a great deal is and fundi one. If you have one, there will be many people interested in buying it. You'll have trouble finding a cash buyer if the deal isn't very good.
Finding cash buyers is the easiest part, especially in today’s economy. Instead spend your time educating yourself on your market (what’s selling and for how much) and talking to potential sellers. You’ll also need a solid understanding of rehab costs and how to know what needs to be rehabbed on any given property. To be a good wholesaler you don’t just need to know how to find deals, but you essentially need to know everything a good flipper knows.
@Shawn Questa if you have a deal locked up at a decent price that pencils out, you can find the buyers, like everyone has said, but what I would say is very important is how you present yourself over the phone to the cash buyers. They are usually busy people and so if you are awkward or don't know your stuff or sound like a car salesman, then you can lose them pretty quickly. Besides being a wholesaler, I close on deals myself sometimes, so I get some very random young guys calling me to see if I want to buy their deals and some of them are terrible over the phone. They take way too long trying to pronounce my LLC's name, when they should skip that part and tell me what they have, like two businessfolks. Anyway, feel free to reach out to me if you want advice.
@Shawn Questa finding buyers is the easy part, especially in today's market but if you are really worried about not being able to move your deal, why don't you JV with another wholesaler in your market and let him handle dispo?
There is no such thing as finding buyers first, or finding a discounted contract first.
You do both. This is simply part of the strategy of wholesaling.
When you do both at the same time, your question becomes irrelevant. Like the dude above me up there siad... the point is to ONLY sign a contract when it is an obvious good deal. No cash buyer will say no to making a profit. They WILL buy the contract.
If your concern is "Not wanting to lock up a contract without having a buyer"... you are absolutely doing wholesaling wrong.
You NEED to tell the seller that you have no interest in buying the property. Tell them you will wholesale it. We get a ton of contracts signed BECAUSE I tell them that.
Honesty and transparency is not just a must in the space of wholesaling, it is THE reason why we close deals.
Thank you all for your Responses.
This is exactly what I was looking for.