Wholeselling: Which comes first, the chicken or the egg?

Many people begin investing in RE either by Bird Dogging or as a Wholesaler, so I thought I would pose the proverbial question "which comes first, the chicken or the egg (i.e. do I build a buyer's list or lock up properties)?? My answer is my own thoughts, actions, and our next day business plan after attending DG's 3 day Boston RE Investing workshop in early June.

In a word, the chicken (or my end Buyer) should come first. As was explained to us by Marc Hrisko, we need a buyer or two and specifically what type of property they are looking to purchase. Once we have the criteria for a buyer or two, then we (i.e. me as a Wholesaler) simply go and find and lock up a property that meets their criteria. Basically we go shopping for them and find exactly what they have said they want and need in a property, whether their ultimate goal is rehabbing or land-lording does not matter to me. I simply have an order to fulfill, and when I do fulfill that order, I will get paid (at closing that is).

Now this does not mean that we are to ignore the eggs. As Michael will say (I know he will as he has on other posts), we certainly need inventory in which to sell to the buyers. But it makes much more sense to already have the criteria (i.e. SFH/Condo/Townhome; side of town; Beds/Baths; square footage, etc.) and to go looking for that specifically, vs. to just shoot in the dark, hopefully get something (anything!!!) and then hope to be able to match this up to an eventual chicken (i.e. Buyer).

The same holds true if you want to begin your RE Investing career as a Bird Dog. First you will establish a relationship with either a Rehabber or a Landlord, and gain an understanding of exactly what they are looking for. Once you know their interests, you will then go sniffing around trying (like a good bird dog) to sniff up and scare up a few likely properties that your Rehabber or Landlord can put under contract. And for each successful property they put under contract, you again get paid!

So in regards to RE, and which comes first (the 'deal' or the Buyers), I would personally say absolutely the Buyers. Go get a few Buyer's on your list, understand exactly what they want and need to buy, and then go fulfill that order!! (and get paid)

To all of our success!

--Walter