Newbie: Interested in Partnering with Wholesalers

Newbie: Interested in Partnering with Wholesalers

New to Real Estate · Raleigh, NC · Member since 2020 · 9 posts · 2 votes

I'm tired of scanning for properties on the MLS only to see something great, inquire about it and find out that it's already under contract. It seems like investors are buying properties sight unseen. Seems a bit risky for my first purchase so what else should I be doing? Where else should I be looking? My mentor floated the idea of partnering with wholesalers and letting them bring the deals to you. Do any of you recommend any wholesalers in the North Carolina? I'm looking all over the south east, and Piedmont areas. I live in Raleigh so anything within 1.5 to 2 hours is doable for a great investment.

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Real Estate Broker · Orlando, FL · Member since 2020 · 9 posts · 2 votes
6y

Hey Tremaine, 

Welcome to the Raleigh market! Raleigh is definitely a hotspot for investing right now. Regarding your post, you have to be careful with who you decide to work with. Unfortunately there are bad wholesalers that give a bad reputation to the honest good ones and I understand why people are skeptical about working with them in general. I agree with you that investors buying sight unseen might seem risky, but you just need to work with someone that is going to provide you with good material that is going to help you make an educated decision. I wish you the best of luck with your investments!

Best regards,

Sebastian Patino

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  • Flipper/Rehabber · Raleigh, NC · Member since 2018 · 76 posts · 67 votes
    6y

    There are plenty of wholesalers in the area the offer a variety of properties. Do you have certain buyer criteria laid out (e.g., turnkey, small repairs, large renovations, home type, rent range, location)? Homevestors, NC Homebuyers, and Merrick Loveland are a few resources I can think of off the cuff.

  • Solo 401k Expert · Anaheim Hills, CA · Member since 2012 · 18k+ posts · 6k+ votes
    6y

    @Tremaine Baker

    Welcome to the BP family! Good to have you here! Here are some recommendations for you:

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    Wishing you the best!

  • New to Real Estate · Raleigh, NC · Member since 2020 · 9 posts · 2 votes
    6y
  • Real Estate Broker · Orlando, FL · Member since 2020 · 9 posts · 2 votes
    6y

    Hey Tremaine, 

    Welcome to the Raleigh market! Raleigh is definitely a hotspot for investing right now. Regarding your post, you have to be careful with who you decide to work with. Unfortunately there are bad wholesalers that give a bad reputation to the honest good ones and I understand why people are skeptical about working with them in general. I agree with you that investors buying sight unseen might seem risky, but you just need to work with someone that is going to provide you with good material that is going to help you make an educated decision. I wish you the best of luck with your investments!

    Best regards,

    Sebastian Patino

  • New to Real Estate · Raleigh, NC · Member since 2020 · 9 posts · 2 votes
    6y

    Hi @Will Kaufmann, I'm honing in on my buyer criteria daily (it feels like) but here's what I do know:

    1. Desired Cashflow: The property cashflow monthly amount should amount to 1% or more of the purchase price (including % down, financed amount, rehab, expenses etc.)
    2. Location: Within NC, preferably within 1 to 2 hours of Raleigh where I live currently. I've been targeting metropolitan areas or towns on the outskirts of these areas. 
    3. Home Type: Looking at single family homes mostly but I would love a duplex or multi-tenant property so long as cashflow ratio is met and my cash limitations aren't exceeded
    4. Turnkey or Small Rehab: I would love a small rehab to instantly add value but a turnkey property within budget that will cashflow instantly is also on the list.
    5. Cash Amount: I have 75K to work with. I'm hoping to turn this into 2 investment properties initially or 1 multi-tenant. 
  • New to Real Estate · Raleigh, NC · Member since 2020 · 9 posts · 2 votes
    6y
  • Flipper/Rehabber · Raleigh, NC · Member since 2018 · 76 posts · 67 votes
    6y

    @Tremaine Baker there are very, very limited opportunities in Wake County that would fit your buying criteria. Many of the surrounding counties are likely more in line with your needs.

  • Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
    6y
    Originally posted by @Tremaine Baker:

    I'm tired of scanning for properties on the MLS only to see something great, inquire about it and find out that it's already under contract. It seems like investors are buying properties sight unseen. Seems a bit risky for my first purchase so what else should I be doing? Where else should I be looking? My mentor floated the idea of partnering with wholesalers and letting them bring the deals to you. Do any of you recommend any wholesalers in the North Carolina? I'm looking all over the south east, and Piedmont areas. I live in Raleigh so anything within 1.5 to 2 hours is doable for a great investment.

    You can always start a mailing campaign and reach the sellers yourself. Although that's only going to make sense if you plan on buying a high volume of properties. If you're just trying to buy a rental or two you need to adjust your expectations of the market and pay more.

  • New to Real Estate · Raleigh, NC · Member since 2020 · 9 posts · 2 votes
    6y

    @James Wise thanks man. Yea I've quickly realized that. I jumped 11K over asking on a duplex recently. Sounds like it came down to me and another buyer but the cash offer won over ours. I can do cash on some things but not this particular deal. My deal is coming!

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