Here are 3 ways to prevent that from happening.
1. Become a bird dog for a seasoned wholesaler. This will teach you how evaluate properties, learn the neighborhoods that are selling and you don’t have to risk any of you own money. In case your not familiar with the term “Bird Dog” It’s simply finding properties for a investors and let them handle the contract negotiations and putting up the deposit to secure the property. He will then pay you a set fee when the property closes. (While in most states this is legal please seek legal advise) DO NOT ask for a up front fee! This will show desperation and possibly ruin the relationship.
2. Partner Up With an Experienced Wholesaler. Like any business transaction he will want to know what your bringing to the table. If your just getting started this is probably not a good option because it will only frustrate you. You must have some experience or things just won’t work out. You may even quit before you close a deal. My suggestion is start off as a bird dog and learn the ropes. Wholesale deals have been around since the beginning of Real Estate and they will still be there next week. Take your time and you will make plenty of money.
3. Find a good Realtor. All Realtors are not created equal. Most Realtors have a specialty. Some specialize in Luxury homes, some the buyers side, some the sellers side…ect. The one you want that specializes in Foreclosures and Bank owned properties. Why? They can help you when analyzing the property, give you comps and give you an idea what the bank mite take. Notice I said “mite”! If they are the listing agent for the bank they do have an obligation to the bank as a seller’s representative.
Wholesaling can be fun and very profitable. I have Wholesaled over 100 properties and only lost money on one deal. Learn to be patient and the deals will start coming your way.