If someone dropped me in a new town and told me to buy a good real estate deal in less than 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 wholesaler.
Not just any wholesaler, because there will probably be several if you want to invest in a large market. What I would look for is the Big dog, the wholesaler who is moving the most properties in a period of time. Look for someone who is buying and selling 5 to 10 properties per month. That is how you find a true wholesaler.
A true wholesaler marks up a deal a few thousand and moves on to the next deal, nothing like many courses and real estate gurus talking of making 10, 20 or even 50k on a deal. These are not true wholesalers, they are flippers.
Flippers make home runs. They find a property and mark it up a lot and make a kill on one deal. These guys do one or two deals a month.
The true wholesalers will not make much money on each deal, that is why investors will be buying from them over and over again because they know they are getting the best deals.
In my opinion, devoting a lot of time and money to learn how to find real estate deals 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 spent 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. 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.
Author: Jesse DavisThis author has published 5 articles so far.