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Find a good real estate deal in a new city in less than 3 hours
By Jesse Davis | September 18, 2008
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 gurus will tell you to do lots of marketing and make a bunch 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 there will probably be quite a few if you are trying to invest in a large market. What I would look for is the Big dog wholesaler. The one who is selling more properties than anyone else. Look for the wholesalers who are buying and selling 5-10 properties a month. They will be true real estate wholesalers.
A true real estate wholesaler marks up a deal a few thousand dollars and moves on to the next deal, unlike many courses and real estate gurus who talk of making 10, 20 or even 50k on a deal. True wholesalers don’t do that, flippers do.
Flippers make home runs. They find a property and mark it up a lot and make a killing one deal. These will be the guys that do one or two deals a month.
The true wholesalers will only make a little on each deal and therefore will have buyers constantly buying from them because they know they are getting the best deals.
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 spent lots 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. In my opinion, devoting a lot of time and money to find real estate deals in this case would be a waste of time. You simply will not be able to find better deals than me.
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 when you want to buy something nowadays? 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.
Topics: Investing |
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