When you are starting out in flip properties or
real estate investing, it is a good idea to think about who you are
going to flip your properties to. That is why I have made this list of
the five best groups of buyers to target when building your wholesale
buyers list.
1. Landlords. People who already own rental
properties in the area where you can find your deals are a great target
group of buyers. Especially if the deals that you are finding are not
in terrible shape. Find out what level of repairs your landlords are
comfortable with and adjust your deal finding methods accordingly.
Landlords can often pay a little more if you can allow them time to get
financing. But be careful to get into that contingency, because the
deal might fall apart in the end.
2. Property Rehabers. In terms
of having a sure-fire deal that is certain to close quickly, by far the
best buyers group to target is rehabers who are actively fixing up run
down properties. They know exactly what they are looking for, and if
you get their specifications it's easy to locate properties that you
can flip to them.
3. Contractors. Contractors often have down time with their crews and are eager to take on additional jobs for them.
You
may have to educate them on the ins and outs of the flip, but they
frequently have some extra cash and or connections with lenders that
they can tap into to close the deal. Don't limit yourself to general
contractors either.
Plumbers, roofer, electricians and other specialized contractors can be great wholesale buyers as well.
4.
High Net-Worth Individuals. Any sophisticated investor and high net
worth individual appreciates the quality and stability of real estate
as a long term investment. If you locate the right type of deal for
them, they can be great cash buyers for your flip properties. Most
likely they will prefer turn-key homes and larger properties
(apartments, commercial) in good or great condition. The numbers have
to make sense as an investment.
5. Other Real Estate Investors.
You can find them easily at real estate investment club meetings, but
make sure they are real actual buyers. Real estate investment clubs are
frequently visited by new investors who have cash and credit and want
to learn how to get a deal under their belt. They will love you for
bringing them their first deal, and if the deal is great you can keep
flipping properties to them.
Hopefully
this will give you a jump start on your real estate investing career in
wholesaling properties. If you are wondering where you can best locate
these different types of buyers, look at my resource box for links to
my blog. Besides some of the more obvious ways of finding buyers, it
has been very successful to build a buyers list using Facebook and
social media.
Thomas Bartke has been an active wholesale real
estate investor for over 6 years. Sign up for his Nationwide wholesale
distribution list and tips at http://cawholesaledeals.com - You'll even get a free report just for signing up and great deals with tons of equity on a weekly basis!