DFW REI Club

 Dallas/Fort Worth Real Estate Investor Club

Realestate Wholesale Properties

  • 08 Aug 2017 9:40 PM
    Message # 5020007

    I am new to the business and looking to find reputable, honest wholesalers for rehabs.  I know that's a loaded question but there is to much information on the web so word of mouth works best for me....Any help would be appreciated.  Thanks 

  • 08 Aug 2017 11:41 PM
    Reply # 5020127 on 5020007
    Robin Carriger (Administrator)

    Kris,

    Here's my two cents.  It'd be nice to develop relationships with honest, reputable wholesalers, and, over time I've been able to do that.  But, in my opinion, you should consider the honesty and reputation of a wholesaler as largely irrelevant.  The reason i say that is that you need to do your own due diligence in determining the market value of a property, the repair cost of the property, etc.  I don't care who brings me a "good" wholesale deal, and I don't care what their estimates are, because I'm going to "trust but verify" every estimate every single time.  As far as I'm concerned, learning to determine values and costs on your own, independent of anybody else's numbers, is absolutely essential.

    Thanks,

    Robin

    President - DFW REI Club
  • 09 Aug 2017 7:43 AM
    Reply # 5020619 on 5020007

    Hi Kris! Robin is 100% correct!. Additionally, wholesalers are not a good option for supplying you with rehab properties. Wholesalers today, in this market, are selling at 80% of ARV or higher. Numbers like this might work for some buy/hold investors, large buying groups etc, but not flip investors. 

    Example: If I buy at $0.70 on the dollar, or 70% of ARV, less repairs, I'll anticipate an average profit margin of 15%. If I buy at $0.80 on the dollar (80% of ARV) less repair cost I've just reduced my anticipated profit from 15% down to 5%. A 5% profit margin is one mistake or a poor appraisal away from taking a loss. It's just not worth the risk!  

    Kris I've been rehabbing full time for 7 years now, I also buy/Hold but for the most part. I rely on rehabbing for working capital so it's certainly a big part of my business model. Feel free to reach out if you would like to exchange thoughts. I can be reached at: Steve@ElvisBuysHouses.com or 817-642-7365.

    Regards, 

    Steve


  • 09 Aug 2017 10:15 AM
    Reply # 5020840 on 5020007

    I too think that Robin is spot on here... Steve also has some solid points. The only thing that I'll add to Robin's comment is that there are some (only a couple of) wholesalers who I will not work with because my experience is that the numbers were obviously fabricated.... The wholesaler that I work with most is one who brings me spot on or even conservative numbers. That said (and if you see my previous posts, you'll always hear me say the following), you should ALWAYS do your own due diligence when it comes to this business. Furthermore, I believe that you should have a firm cut-off of what deal will/will not work for you. 

    Brian R. Baker, MBA

    brian@texashousingpartners.com 

  • 09 Aug 2017 12:22 PM
    Reply # 5021074 on 5020007

    I appreciate the feedback.  Thanks everyone...

  • 09 Aug 2017 12:25 PM
    Reply # 5021079 on 5020007

    What's would you recommend for finding good rehab properties?  

  • 09 Aug 2017 1:06 PM
    Reply # 5021144 on 5020007

    Not one wholesaler in over a year has shown me a MAO deal. Unless you have access to no or low cost money, you should take Robin's wholesaling course & find them yourself. Good luck as some companies are spending over $75k a month on mailers, so its going to be bandit signs, door knocking, and other methods. 

  • 16 Nov 2017 9:10 AM
    Reply # 5589136 on 5020007
    Kris Kelley wrote:

    I am new to the business and looking to find reputable, honest wholesalers for rehabs.  I know that's a loaded question but there is to much information on the web so word of mouth works best for me....Any help would be appreciated.  Thanks 

    Call Daniel at 214-471-3553
  • 16 Nov 2017 9:26 AM
    Reply # 5589149 on 5021144
    Chris Winkler wrote:

    Not one wholesaler in over a year has shown me a MAO deal. Unless you have access to no or low cost money, you should take Robin's wholesaling course & find them yourself. Good luck as some companies are spending over $75k a month on mailers, so its going to be bandit signs, door knocking, and other methods. 

    Did you see my post on Granbury property?  Hot market.  Need to assign and close asap.  $150k buys it today.  
  • 22 Nov 2017 7:48 PM
    Reply # 5599060 on 5020007

    Robin and Steve are right on with their comments and recommendations.  Take the time to learn the business.  Invest in yourself, spend the time, spend the money and educate yourself.  Attend REIA groups like Robin and Cindy's that teach great content and how to conduct business correctly and network with, and learn from, others that are "Successfully" doing what you want to do.   

    You must take ownership and responsibility of every aspect of your business including locating and analyzing deals.  Is it easy?  No, but it's easier when you're smarter.  Stay plugged into Robin's group and with experienced members such as Robin, Steve and others, and learn the right things, the right way and you will be successful. 

    To your success!


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