Could you find a good real estate deal in a new city super fast?
Drop me in a new town and tell me to buy a good real estate deal in about 3 hours. Here is what I would do.
The big experts will tell you to do a bunch of marketing and make a lot of offers on houses. But you want to find a deal fast, so the first thing I would do is find the local real estate wholesaler.
Not just any wholesaler, because in a large market there will probably be more than a few and that is where you are investing. What you should look for is the Big dog wholesaler, the one who is selling more properties than anyone else. Look for somebody who is purchasing and selling five to ten properties per month. That would be a true wholesaler.
A true real estate wholesaler marks up a deal a few thousand and goes to the next deal. Unlike many courses and real estate gurus who talk of making 10, 20 or even 50k on a deal. They are not true wholesalers. They are flippers.
Flippers make home runs. They find a property and mark it up quite a lot and make a kill on one deal. These guys do one or two deals a month.
The true wholesalers will only make a little on each deal and therefore will have buyers continually buying from them because they know they are getting the best deals.
In short, devoting a lot of time and money trying to learn how to find real estate deals in my opinion is a waste of time. I am one of the big dog wholesalers in my area and, after thinking about how I do business, I realized that before I became a wholesaler I wasted a lot of time and money learning how to find deals. It does pay off if you want to be a wholesaler but if you are just trying to flip a deal or build a rental portfolio it really does not make sense trying to find better deals than me because you will not be able to do it.
Use the local wholesaler if you want to find great deals super fast. It is like having a buyer on your staff that is doing all the legwork for you. By using their expertise you will save time and money that is more than worth the mark up you will pay.
Where do you go to buy something at lower a price? Wal-Mart, Target, all of these stores are actually large wholesalers. They buy in bulk and then pass the savings on to the consumer. That is what the local wholesaler does in your real estate investing.
Filed under: Business