Level Two: Finding Other People's Off-Market Deals
Real estate is a team sport. If you try to do everything yourself, you are going to burn out fast. That is where Level Two deals come in. Instead of hunting for every lead yourself, you can work with people who already have deals under contract.
The main players in this space are wholesalers. Think of a wholesaler as a matchmaker. They find a distressed property, put it under contract, and then sell that contract to an investor like you for a fee. It is a win for everyone. They get paid for finding the deal, and you get a property without spending months searching for it.
How to Work With Wholesalers
You can’t just trust every wholesaler you meet. A lot of people try wholesaling when they are new and they might not know how to estimate repair costs correctly. You have to vet them.
Ask them how many deals they close a month. A serious player is closing at least six. Also, look at their math. If they can’t explain how they calculated the renovation costs, that is a red flag. Always do your own due diligence. Even if you trust them, run your own numbers on the after-repair value (ARV) and the rehab costs.
Where to Find the Best Deals
You need to get your name out there so wholesalers think of you first. Here are the best places to hang out:
- Local Meetups: Use sites like Meetup.com to find local real estate investor groups (REIGs). This is where the real networking happens.
- Online Forums: BiggerPockets is the place to be. Get in the comments and start talking to people.
- Social Media: Follow local wholesalers on Instagram and Facebook. They often post their newest deals there.
- Bandit Signs: You know those “We Buy Houses” signs on the side of the road? Call them. Tell them you are an investor and ask to be added to their buyers list.
Making Life Easy for Your Partners
Wholesalers want to know you can close quickly. If you can prove that you have the money and the intent to finish the deal, they will send you their best stuff before they blast it out to everyone else.
One pro tip is to have a relationship with a title company that understands contract assignments. Not every title company knows how to handle these, so if you can bring a solution to the table, you make the wholesaler’s job much easier.
Defining Your Buy Box
To get the right deals, you need to tell people exactly what you want. This is called your “buy box.” It includes your preferred location, property type, price range, and the condition of the house. When you share your buy box with other investors, they can act as matchmakers for you.
Real estate is about who you know. If you play nicely with others and provide value, you will get where you want to go much faster.
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