You are probably thinking right now, “That sounds great! Where do I find these wholesalers? Is there a ‘How to Find Wholesalers’ e-book?”  And since a wholesaler’s pure existence depends finding deals and their network of investors to sell to, you can be their key to this. Since they have connections they will have access to the deals and opportunities. Let’s look at the tree main ways our team finds wholesalers.

Networking

Networking is everywhere. So it makes sense that you should be in networking, so you too, will be everywhere. Join your local chambers and building associations. There are also Realtor associations out there but make sure you have your real estate license first before you go showing up at their events. Many cities will also real estate investing (REI) meetings or chapters. This is a great place to meet other investor minded individuals that can pass along deals to you.

Social Media

Facebook, LinkedIn, Google+, Twitter… the list seems to grow every few months. Make sure you are making the most of your time on the social media sites. Facebook and LinkedIn are especially helpful in locating wholesalers as there are tons of them forming groups on said social media sites. All you have to do is put “wholesalers” in the search field and there will be hundreds of like minded individuals in groups looking for deal and buyers and wholesalers. LinkedIn also has forums and discussion groups that you can get involved in. There are also real estate investing sites that are just for investors like Bigger Pockets. Discussions, blogs and helpful tips abound on this site. One could also beg to differ it would categorize as networking as well.

 Craigslist

Yes Craigslist. It has gotten some bad rep over the years on people trying to find or sell some uh, slightly inappropriate items but it can be useful in your wholesaler search. Many “off market” deals can be found on Craig’s List. Tons of homeowners and wholesalers are trying to sell their homes on Craigslist. Some of the best FSBO deals are just waiting to be scooped up. Make it a habit to check the real estate section daily.

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One of the ways some flippers make deals is by Wholesaling. Wholesaling real estate provides an opportunity for someone to build income with little capital or credit. Their main purpose is to go out and find a property, get it on a contract deal and immediately  re-sell it to a real estate investor/buyer. You have to be a pretty savvy business person with a lot of know-how to be a wholesaler. Although wholesaling does not require a real estate license, since a license is not required to buy or sell any property that you have an equitable interest, it does take a lot of knowledge of the business. That interest can be a contractual interest (you currently have property under contract) or you actually own the property or the title to the property.

A wholesaler in a nut shell puts property (normally distressed property) under contract and assigns or resells the property to another investor. The investors a wholesaler sells to either use cash, lines of credit, or hard money loans. This allows quick closings on properties that sometimes need extensive repairs.

A Wholesaler’s pure existence depends on two things; finding deals and their network of investors to sell to. Since they have connections they will have access to the deals and opportunities.

Why to use a Wholesaler

(source BiggerPockets.com)

1. They look at it as a business rather than a hobby. They are serious about helping you find deals and the motivated sellers.

2. They provide honest/accurate data. Whether it be after repair value or rehab costs, if you are getting inaccurate (or none at all) estimates, move on.

3. They actually DO MARKETING and/or HAVE CONNECTIONS. The business model is to generate as many leads as possible. To do this, most will use some combination of direct mail, bandit signs, Internet leads, and referrals. Additionally, many will search the MLS for short sales, estate sales, auction properties, and distressed homes. 

 While Wholesalers can seem to be a flipper’s best friend, be sure to do your homework on the ones that make you think you hit the wholesale lottery. If it seems like the deal is too good to be true, then it probably is. Clever Investor has an elementary diagram that helps explain it all.

 Wholesalers play an important role for rehabbers especially those flipping houses in their spare time. They spend hours finding, sorting, and cultivating leads. Theoretically, most if not all of the junk deals are eliminated in the process. This helps rehabbers stay focused on flipping houses and not get distracted chasing bad leads.

For more information on real estate wholesalers check out these links:

 http://www.biggerpockets.com/renewsblog/2011/11/21/why-should-your-work-with-real-estate-wholesalers/

 http://www.biggerpockets.com/renewsblog/2012/08/24/flippers-best-friend-the-wholesaler/

 http://www.biggerpockets.com/renewsblog/2011/08/05/real-estate-wholesaler-definition/

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