I know a talented quarterback when I see one even though I’ve never played the position. A good actor is easy for me to spot and I’ve never taken a drama class. I also know what a good golf swing looks like, despite my 25 handicap.
I haven’t done any real estate wholesaling since 2003. However, I do have a pretty good idea what a “true” real estate wholesaler does. After posting How to Spot a Wholesale Real Estate Pretender last week many of shared your experiences with the so-called wholesalers in your market. So what is a “true” real estate wholesaler and what do they do? Fortunately, I didn’t have to come up with the definition on my own. Our readers did all the work. See below.
A System and Experience
Most “true” wholesalers (and this may be gross generalization) are usually one man operations that have a great deal of time and experience in their craft and often do not have websites because they don’t need them. They have a list of clients that they work with, but would probably consider working with more as long as they were true buyers. – Chris Clothier
Here in central Indiana, there are a handful of “true wholesalers” that are among some of my sources. They don’t do websites. They know what I like (type house, area of town, price range) and will typically make me one of their first calls when they contract one. And, they make $2,000 to 3,000 per transaction and move on. When they call, if it’s something I like, we often take it off the market within hours. – Charles Bradford
No Phony Deals
It seems that there are far too many of these “wholesale pretenders” as you called them who are just pitching crappy “deals” (retail) out there. Anyone can go and find a deal on the MLS, but to find the diamonds in the rough – that’s a skill. – Joshua Dorkin
I advise wholesalers I come across to at least show me a deal I haven’t already found myself and turned down. – Don Hines
People trying to play middleman with “dead” real estate are the lowest of the low on the totem pole. The late night TV guys encourage people to sell this way and encourage even more people to take their small bankrolls and buy from these sellers. – Robert Ely
I agree with the loopholes most wholesalers make you jump through to see current deals are a PAIN. We don’t really see any reason to hide what we have. Yes, some deals may be a steal, some may be mediocre. We have all our wholesale deals listed and we offer people to just in an email to subscribe to our RSS feed via Feedburner in order to have an easy way to stay in the loop. – Andy
I subscribed to a bunch of wholesaler lists and have yet to see a good deal. The comps are cherry picked every time. The one deal that I saw that looked promising had an addendum from the wholesaler a mile long. One of the conditions buried in there was that if the wholesaler was unable to deliver title they could postpone the closing indefinitely all the while holding on to the quite sizable finder’s fee. I mean their terms absolutely sucked. I told them to go jump. – Robert Steele
So there you have it. “True” wholesalers have a system and experience. They don’t advertise phony deals and keep it simple for their buyers. Thank you BiggerPockets readers. You saved me hours of time. Now I can go work on my golf game.