If you are looking for discounted properties, then you’ve probably heard of the term “wholesaling” before.
For those of you who don’t know, my definition of a real estate wholesaler is as follows: “A person or entity who contracts discounted property and sells them to cash investors while keeping a small cut in the middle.”
Furthermore, a down and dirty example would be as follows:
Seller agrees to sell 123 Main Street to Johnny Wholesaler for $50k. Johnny finds a cash buyer who is willing to pay $60k, so when they close the seller gets their $50k and Johnny gets the remaining $10k left in the deal.
In my business here in Columbus, Ohio, we have been utilizing wholesalers constantly. We try to network with as many as possible. Not now only do I buy good deals from them, but I also like to see what is selling around the area to cash buyers, whether I am buying or not.
Here are a few buy anti estrogens tips for finding wholesalers:
1. Craigslist – For Sale Section
Many wholesalers advertise their properties on Craigslist. Usually they will say something like “contract for sale” and have a picture of a house with the address in the ad.
2. Craigslist – Housing Wanted Section
Typically wholesalers will post their “we buy houses” style ads in this section of Craigslist. Sometimes buyers like myself will post these, but most of the time you can count on it being a wholesaler looking for cheap houses to buy.
3. Zillow – For sale by owner
Similar to Craigslist, many wholesalers will advertise their properties for sale on Zillow. They typically only use the “FSBO” option.
4. BiggerPockets Networking
BiggerPockets.com is a great resource for finding local investors. Be active on the forums, reach out privately to the wholesalers in your city and have them add you to their list.
5. Local Meetups
Most decent sized cities have their own real estate meetups where investors go to network. Some are more wholesaler focused than others, but all should have a fair amount of deal finders in the mix.
Once you find wholesalers, reach out to these guys and ask them to “put you on their list.” This just means that they will add you to their buyers list so when they blast a wholesale deal out, you see it first.
If you follow these simple tips you should be able to get on the majority of wholesaler lists in your town! Getting to be one of the first people who knows about a deal puts you first in line to get the best price on an investment property.
In Part 2 of this series I am going to give you some killer tips for working with Wholesalers after you’re on their list.