The Top 6 Ways Wholesalers NEED to Change How They Do Business (According to a Wholesaler)

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Bottom feeders.


Greedy vampires.

Sound familiar?

Our friends in real estate often use these names to refer to us wholesalers—and you know what? In most cases, we deserve to be called such things.

I am going to tell you up front that a lot of what I am going to say today may come across as harsh, but my intention isn’t to bash anybody. As a man of faith, I have nothing but love for all people. But as an industry, we wholesalers have a lot we need to change.

The truth is, there are several things I see people do in this business that justify the raunchy names we get, and today, it is my goal to shed light on the darkness, so that we can wholesalers can change.

In my day-to-day, I interact with a lot of different wholesalers, and I am on a lot of their “buyers” lists, so I experience first hand the best and worst of this industry.

In my last blog post, I highlighted to you why I love wholesaling as a real estate strategy, and in the feedback I got, a lot of people were elated to finally have a positive voice standing up for the honest side of this business.

Related: The Ultimate Beginner’s Guide to Real Estate Wholesaling

But do you know why there is so much bad talk about us? It is because most wholesalers have terrible habits, and they are hurting the rest of us!

I’m sure you’ve heard the saying “A bad apple spoils the whole bunch,” and it really rings true.

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The Top 6 Ways Wholesalers Need To Change, Right Now!

In the following sections, I am attempting to highlight the 6 major areas of change that need to occur in the actions and habits of the majority who call themselves wholesalers.

Ready? Let’s do it!

1. Wholesalers Need to Stop Selling Other People’s Deals at Different Prices

The other day, I was routinely sending out an email to a few of our buyers, marketing one of our current deals. One of the people I reached out to was an investor friend with whom I’ve done a lot of business over the years and who knows me very well.

When I sent him the property, he messaged me back saying, “Brett, you’re the third person to bring me this exact deal, and each one has had it listed at a different price. Do you know what’s going on here?”

I quickly replied, “That’s really strange because I actually own the property, and I don’t know who else would be sending it to you.”

This happens all the time—and it is flat out illegal, too.

I don’t know exactly where people learn to do this kind of stuff (probably some guru teaches it). But a lot of people go around marketing other people’s deals, trying to sell them with a marked up price, and it’s not okay!


Now, understand that I’m not saying that someone working on your team can’t help you market, but it’s a totally different issue to have someone you’ve never met, with literally 0% interest in the deal whatsoever, steal it from you and try to sell it.

This is downright illegal! If you do this, stop it right now!

To put what’s happening here in the proper perspective, what these wholesalers are doing is the same as if my neighbor was selling their house with an agent for $100,000 and I just decided, “Hey I’m going to send this property out to a bunch of people asking $110,000 for it, without any real interest in it, but I’m going to act and pretend that I own it. Then if someone accepts it at my price, I’ll bring it back to my neighbors and offer to buy it at their price, profiting $10,000!”

According to the law, you cannot sell a house that isn’t yours, unless you have authority and permission to do so. It’s common sense, but a lot of wholesalers seem to have this idea that somehow the rules don’t apply to them, which leads to my next point:

2. Wholesalers Need to Start Playing by the Rules

Most wholesalers like the one mentioned above seem to believe that for whatever reason, the real estate customs, rules, and laws somehow don’t apply to them.

For one, a lot of them don’t actually get their licenses because it creates a “liability” for them to abide by professional standards. But my question is, if your business is structured by profiting from the sale of real estate, why wouldn’t you get the legal credentials to do it properly?

Related: 3 Reasons Newbie Wholesalers Should Strongly Consider Getting a Real Estate License

Along time ago, I was taking my first real estate class. Upon telling my instructor that I was an investor, she was the first to try and convince me not to get my license. Her main point was that if I were to get it, by law I would have to disclose everything to all parties involved.

But here is my question: Why would I want to run the type of business where I didn’t want to disclose everything? Am I a fraud running some kind of scam? What exactly do I have to hide?

I’m the kind of guy who is going to disclose everything regardless of whether I hold my license or not, so I might as well utilize its benefits. If you’re running your business right, there shouldn’t be anything you don’t want to disclose.

Again, don’t misunderstand what I’m saying: You can be an ethical wholesaler without your license, but my question is, why would you go that route in the first place?

Personally, I like having my license because it causes me to act professionally and creates a sense of accountability. I have to abide by the code of ethics as a broker, and that makes me a better wholesaler. Most wholesalers don’t think that way, though, and it’s a shame.

For a lot of people in this business, it almost seems like it’s a game to see who can cut the most corners, take advantage of the most legal loopholes possible, and exploit the most people.

But again, my question is why?

The rules and laws are in place to protect all the parties involved. Why not simply do things the legit way? I guarantee you that in the long run, playing by the book will sustain your business and make you more successful.

Trust me! I’ve been in this business long enough to see the ones that last.


3. Wholesalers Need to Stop Putting Down $0 Earnest Money

The next area that needs to change in our industry is our practice when it comes to earnest money.

A lot of gurus will teach wholesalers to put down as little earnest money down as possible so that if you end up backing out of the deal, you’ll lose as little money as possible. To be frank, I think this is a horrible way to do business.

My company does its best to live by the golden rule: “Treat others as you want to be treated.” If I were selling my personal residence, I would not want to sell to someone who wouldn’t put down any earnest money. And for some reason, wholesalers think that the custom of earnest money doesn’t apply to them, and they always seem to try and get around it.

For example, the other day I had a gentlemen make me an offer by a random text message (which was kind of weird in the first place because I didn’t know him from Adam, but we’ll save that for another day). The property he was interested in was already pending, but I told him I had several other properties and asked him what exactly he was looking for. So he told me, and I had a property that matched his criteria.

He went and checked it out, and he then texted, “Hey. I can buy the property at X amount.” So I ran some numbers and replied, “You know, I think I can make that work. I’ll go ahead and get a purchase agreement written up and send to you, but because we haven’t met or done business before, I’m expecting a $1,000 earnest money deposit on this house.”

He then texted back saying, “Um, I’m a wholesaler, so I don’t submit any earnest money. What we do is we tie up your property for 30 days, and then if we don’t sell it, we walk away no questions asked, and no one is hurt.” I guess that was his idea of a good deal for me… and obviously he had my best interest at heart—NOT!

This really struck a chord with me because he honestly thought that since he was a wholesaler, the normal real estate customs did not apply to him. I mean, the guy thought what he was offering was totally rational, but think about it: If I went through the MLS on an offer for an REO (or any house for that matter), the offer got accepted, and the agent was asking for my earnest money deposit, and I said something like, “No, wait, wait, wait, I don’t need to give any earnest money; I’m a wholesaler,” what do you think the real estate agent would do? They would think I was crazy and tell me to get lost!

The fact is, I think earnest money is a good way to do fair business. If you’re going to tie up someone’s property for 30 days, you should have some risk invested. Those who try to wholesale properties without it become known as “that wholesaler” who always backs out of deals, has horrible properties, and is generally a headache for everybody to handle.

Now, do I always spend a lot of money on earnest money? No!

Sometimes I’m buying a $3,000 property and only put down a $100 deposit, but typically, I put down around $500 because it gives me something invested in the deal, and that’s the least amount I would want if I were on the other side of the transaction. Again, I want to be held accountable and be known to do right by people, and I think earnest money is one of the ways to achieve that.

4. Wholesalers Need to Stop Acting Greedy!

You know, it’s crazy, but going back to my story about the guys who were illegally trying to shop my properties, I’ve had people I don’t even know try to mark up my properties by $20,000. This was also on top of my wholesale fee, and it made the deal look ridiculous!

The way a lot of wholesalers mark up their prices is sickening.

I always tell new aspiring wholesalers that I mentor to ask themselves, “If you were a fix and flipper or a buy and hold investor, would you buy the deal you’re trying to sell right now?”

And that’s the key in this business: You have to put yourself in the other person’s shoes. Can you almost guarantee that investors will make a profit on the properties that you’re selling to them? If the answer is no, why the heck are you sending them a bad deal?

It’s the number one way to ruin your credibility!


The next time you send them a deal, you’ve now been labeled a bad wholesaler and a waste of time. What’s even worse, though, is that the vast majority of those “bad” deals could have actually been great ones if the wholesaler would have been willing to profit less from it.

I’ve run into a lot of wholesalers who set minimums. For example, they say they have to make at least $10,000, or they won’t unload the property. But for me, if I can sell a property the same day or within the first week, I’m happy with making anything. It’s typical for us to do deals where we only make about $3,000-$3,600, and it’s those deals that feed my family!

Now, do we ever make $10,000 or $15,000 on one deal? Definitely! But we only make that if it’s an incredible deal, and our investor buyers can still make great money from it as well. It always needs to be a win-win for us and our buyers. Otherwise, we aren’t doing our job right.

Do not be greedy! Analyze your deal and assess, “Is this a $3,000 or a $10,000 deal?” Make sure there is enough margin for your investor buyers, and you’ll be good to go!

5. Wholesalers Need to Keep Their Buyers in Mind

Again, you must keep your buyers in mind. Yes, my horse has died, I’ve taken out a bat, and I’m beating the crap out of that sucker!

I’ve heard a lot of investors say, “I have a list of a ton of different wholesalers, but I’ve never bought anything they’ve shown me because the deals are simply not good!”

Wholesalers listen up: If the deal is so good that it is almost hard for you to sell it, then you know you’re at the right price. If it’s such a good deal that it’s tempting you to keep it and either flip or hold yourself, then you know you’re selling the deal at the right price. If you send a deal out, and 10 different investors call you right away to see the property, don’t feel like you under-priced the property. This is a good problem to have, and investors will start to notice you and your deals.

Your investor buyers don’t want your leftovers! People want amazingly good deals, so you need to be the guy who is known to have them.

6. Wholesalers Need to Keep Their Word

Finally, I want to address something that I believe is the most crucial on this list.

A lot of people think that the only strategy wholesalers use is to get properties under contract and then try and flip that contract by assigning it. I want you to know that is not the only way there is to do it.

My company doesn’t do that at all, and there is a reason for it. What we essentially do is buy the properties outright, meaning we close and actually hold title before we ever sell it to someone else (even though it may be just a few minutes sometimes). I am not saying that you can’t or shouldn’t assign the contract if that is the option is available, but you need to think of what would be best for the “motivated seller.”

The problem is that most wholesalers get a property under contract with the intention of assigning it, but when they can’t find a buyer, they just back out and leave the seller with nothing. If my company is going to tell a seller that we are buying their house, then you better believe that we are following through (unless something very unusual happens).

Related: 4 Critical Elements to Master for a Top-Notch Wholesaling Business

There is integrity in being a person of your word. Your word is sacred and should be protected. I want to challenge every wholesaler out there to step up their game. People need us to be leaders of integrity, and our industry needs to change.

I know sometimes that doing things the right way isn’t the most convenient; sometimes it’s easy just to fudge a little here or there in order for things to get done in the short term, but if you continue, everything will end in ruin. I promise you.


In order to actually have the capacity to buy the property outright, you may need to partner with someone, find a transactional lender, or use private money. In the short term, you probably won’t make as much as you would if you did it the other way. However, if you establish yourself as the guy with great deals, as the guy who is dependable, always does right by people and who isn’t greedy, then very quickly people will be coming to you over your competition. And you’ll be so busy that you won’t know what to do with yourself!

In closing, I want to be very clear: I love wholesaling, and I love wholesalers, and honestly, that’s the very reason why I wrote today’s post. I know a lot of what I said may have come across as harsh, but I only spoke the way I did because I wanted to get your attention.

From the response I’ve received from my last post, I’m well aware that these are the same complaints other investors have against us wholesalers, and these things need to stop.

Our reputation needs to change.

If you are involved in wholesaling in any capacity, I want you to ask yourself, “Do I want to be one of the 90% of wholesalers who deserve labels like the ones written in this article, or do I want to be a part of the other 10% who are truly an asset to every investor they come across?”

When people hear the word “wholesaler,” it’s my desire for people to think of us as professional deal finders who they know they can trust.

It’s time for us to raise our bar. It’s time for us to stand up.

[Editor’s Note: We are republishing this article to help out our newer readers.]

Whether you’re a wholesaler or not, I want to hear from you: What would you add to this list? How can wholesalers start to repair their reputations?

Let’s talk in the comments section below.

About Author

Brett Snodgrass

Brett Snodgrass is a licensed real estate broker and wholesaler who hails from the Indianapolis metro. His mission in life is to glorify God by serving as many people as he can through his real estate business. He has a pretty active community growing on Facebook and is also the founder of Come check it out now and connect!


    • Brett Snodgrass

      If you are a Sales Agent and you are wholesaling houses, I would talk with and work with a broker that knows what you are doing and will work with you. As when you are a sales agent, your broker needs to know your activities performed while they are holding your license. I was a sales agent for a year, and my broker knew that I was a wholesaler and he didn’t take any fees are commissions from the houses that I personally bought and sold, so it worked out fine.

      Hope this helps,

    • George House

      Hello Brett this is a great post, I’m new to wholesaling and I have not done a deal yet, I’m in the learning stage. I like what you have to say about the business and how to approach it. I’m going to take your advise and run with it, because that’s how business should be done and I want to be the go to guy in my state for sellers, flippers and the rest. so thank you, and I’m going to get my Real Estate License it the way to go for me.


  1. karen rittenhouse

    Another great post, Brett.

    We teach the buyers in our office to: first calculate how much they can pay to purchase the property.
    Next: realize that this is the number an investor is going to want to buy it from us for.
    So, our buyers must buy low enough that they can sell it at their calculated purchase price.

    To be a successful wholesaler, the very first thing you must learn is how to buy so deep that you can sell it at a price where your buyer can rehab and still make a profit. It must be a win for everyone .

  2. Kirk Pfaff

    This is a great post. It reminds me of an oped I would read in the wjs. I’m new to wholesaling, but so far most of the people I have talked to or met seemed like nothing but washed up used car salesmen who want to take advantage of the naive public. I am going to enter this industry with the same integrity that any entrepreneur should have in a start up. Thanks for the article :).

  3. In many states a 3rd party cannot represent real estate for sale unless he/she is a licensed real estate agent.

    Thus if X (a non license real estate agent) owned a property he was \”wholesaling\” and had his associate Y ((also a non license real estate agent) show the property and Y did not have ownership in the property Y could be in violation of the state\’s statute because he is unlicensed.

    • Liz Sickinger

      I love this post! My friend and I are trying to break into wholesaling in Ohio. Our goal is to enter this business with integrity and honesty and not be thrown into that group of “unethical” wholesalers. Thank you for your inspiration!

    • Brett Snodgrass

      Hi Tom,

      Thanks for the comments. I read your comments a couple of times… (Also thanks for commenting on my last Blog, as it gave me inspiration for this one). On your comments, what part of this article are you referring to? I know what you are stating here, and I believe this is right in some instances… I don’t know all of the laws in all of the states. But I guess which part of the article were you referencing when you made this comment? . But I believe If I have a license, and I own a home here in Indiana, and I have an employee that exclusively works for me (Paid by the hour, and not on commission), & he doesn’t have a license, I can send him to unlock the door for someone to see my property. Can you explain a little bit on this, and what you were referring to in this article? Thanks. Brett

  4. Michael Boyd

    Great article! I could not have said #4 and 5 any better, as I have began to wholesale in the past couple of months, and always must keep this in mind! Luckily I have a small portfolio of rentals and perform some flips and so I know what can happen and how to present these deals. And while I might know my intention is to wholesale a deal, I will not lock up a property unless I feel I can buy it myself if I have trouble finding a buyer (which will happen from time to time as you keep learning the craft.). Look forward to some more articles!

  5. Liz Sickinger

    I love this post! My friend and I are trying to break into wholesaling in Ohio. Our goal is to enter this business with integrity and honesty and not be thrown into that group of “unethical” wholesalers. Thank you for your inspiration!

  6. Rochelle Ray

    Brett, as usual, well done! Although I understand your point on the licensing, I disagree that we NEED one. I can be held accountable to a higher law (God) than ours and do just fine and it saves time and money. That is why we have realtors on our team. That isn’t to say that having one is a bad idea. You have a very valid point. I’m just stating you can not have one and still be upright. I am so glad your doing these articles for both the new wholesalers and other investors out there who don’t think so highly of us. We aren’t all greedy. Find the right ones and work with them! I guess people just don’t care about their reputations anymore? Sad.

    • Brett Snodgrass

      Thanks Rochelle for the comments,

      I understand your point on the license part. I started wholesaling without a license and did that for about 2.5 years. We did well without a license, and I like your point on the higher authority “God”. That is very true, and you can do very well and run a wholesaling business with complete integrity without a license. I simply just think that for me personally, having a license has a lot more benefits than it does non-benefits. So that is why I suggest it. But thanks again, I appreciate your honesty, and “Constructive Points”. Brett

  7. Marc Tolbert

    Brett this is a very good blog. I wish you were around when I signed up for the guru training, lol. You really are doing this the right way. man so many deals that have wasted so much of my time that were shopped by other wholesalers and the deal would always fall through. Wish you did mentoring for people who really want to do this the right way.

    • Brett Snodgrass

      Thanks MARC,

      I am really sorry about your wasted time and $ on the trainings, etc. That is no fun, and I would be lying if I said I never paid for a course that didn’t deliver what was promised. I do some mentoring, but right now I try to stay in my local area. Even though wholesaling is the same wherever you go, I think in order for me to run a good business and be fair to anyone that I am mentoring, I need to have them be in the areas that I know very well. I am not sure if there is a local meet-up in your area, but you might find a successful Wholesaler in Florida that would take you under their wing. (Just don’t pay them $1000’s up front….) Reach out to me on a PM, and I can help you as much as possible. Thanks, Brett

  8. Rose C

    Thanks for discussing something that is long overdue. I agree, most Wholesalers need to take stock of their integrity. I would add to your list that they need to treat the property seller with dignity. I so often see Wholesalers on a FB page bashing the homeowner that just wants to be left alone. So often, they forget that these are people in probably the worst circumstances in their lives and the W/S is being a jerk. Compassion should be the first Commandment of Wholesaling.

    • Brett Snodgrass

      Rose, I 100% agree with your comment.

      I’ll take note to possibly come up with a follow-up post addressing how we should serve the property seller as wholesalers.

      It is shameful how badly we as an industry treat them, and I love the idea of compassion being the first “Commandment” of Wholesaling -couldn’t of said it better!

  9. Steve L.


    This is very well written and I am glad that you put this out there. Being a cash buyer I see this ALL the time.
    I think anyone who is making a decision to get into wholesaling should read this before doing so. It gives a great perspective of what NOT to do.

  10. Philip Tun

    Great post, I just experienced this whole post with crazy wholesalers calling me telling me they have wholesale deals but marketing MLS deals. I had one deal that didn’t go through because there were 3 wholesalers involved and all wanted a 10k profit at the end. I think it’s ridiculous with what these so call “wholesalers” are trying to do.

  11. James Green

    @BRETT SNODGRASS great post!! As a wholesaler myself I get a lot of calls from others wanting to do a JV, but when I do my due diligence, many times the numbers don’t work or there is several other wholesalers involved. When I first started I don’t know about those things, until a buyer of mine came back & told me that I property I had sent to him he had already seen with different prices. That’s when the light bulb came on.
    A “wholesaler” recently sent out a “great deal” to a REI email list & a buyer came back asking why was he trying to wholesale a listed property for 20k more than what was on the MLS.

  12. Shane Rupe


    Great post! There are a lot of ethical and morally sound wholesalers out there which are great to do business with. However, like anything else, there are those that are not so ethical. All of your points are valid. Thank you for sharing!

  13. Jamane Y.

    Thank you very much for your insight. I want to be great at any job I do, but I won’t talk about wholesaling on BP, because of the negativity that comes out. I am however studying for the real estate license so hopefully it will bring legitimacy to my end of wholesaling.

  14. Jason Owens

    Thanks for the post! I’m new to this industry, learned a good bit about wholesaling, but as I look to apply those strategies locally (Philadelphia) I’m finding like some of the other readers that wholesaling has a bad name in general and specifically in Philly. Looking for a way to differentiate myself being new and with what’s out there not being what I want to be associated with.

  15. John Hamilton

    Brett, great article! Thanks so much for your continued support for BP members, especially newbies.

    I agree with Rochelle Ray that you don’t need to be a licensed agent to perform ethically and do right for others and your reputation. I understand and can appreciate the reasoning behind it, but it’s not a necessity. Especially for wholesaling…I don’t think the two mix very well. I’ve heard it works for others, like yourself, where you have a broker who is willing to accept your dealmaking on the side. I assume that any deals you flip to FnF buyers, hopefully they will resell and use the broker’s services to do so.

  16. Jose Reyes

    Great article Brett! I definitely agree with you on following the Golden Rule when wholesaling. It really is the best scenario when it’s a win-win for everyone. It feels good to be a quality contact for investors instead of just another wholesaler with a property.

  17. Santrece R.

    Great article Brett! I’m a fix & flip investor but I also wholesale deals. So when I wholesale, I make sure I never do a deal that I wouldn’t want. As someone else stated, deals should be a win-win situation for all parties(including the motivated seller).

  18. Cory Baker

    Really appreciate the article and all the great responses everyone contributed, especially the part of not NEEDING a license, at least you didn’t have one for over 2 years. I had one but couldn’t keep up with all the dues and after several years finally let it expire. But, or should I say, BUT! When I hear or have attended classes or seminars suggesting things that would jeopardize an agent’s license or bring them before the board, I still cringe. Disclose, disclose, disclose. And, I too have come across some of these “new-fangled-wholesalers” and it gets pretty messy, when contracts, and protocols, and law are alien concepts to them. Ugh.

    I’m a wholesaler (sometimes I swear that’s an affirmation) but have yet to successfully close my first wholesale deal. I have someone who is signing an option contract tomorrow and I’m not willing to talk to anyone about it in specifics except my acquisitions partner until I have that contract signed…not just promised to be signed…

    And that seems too “old school” to some. But, feels more intrepid to me.

  19. Karen Petty

    Hi Brett,

    Thank you so much for taking the time to write this post! I am new to wholesaling…looking for my first deal and very aware that you only have one chance to make a first impression and I strive to make the right impression each and every time. We all need to make money, but I need to sleep at night and not worry about the Holy Spirit yelling at me because my actions did not glorify God.

  20. jeff fairchild

    I guess I’m confused. Investors want a great deal but let’s say we can only get the sellers down in price to exactly 70%ARV – repairs with no room for me to profit. So now I have a great deal and these 10 investors are jumping at the chance to have me give the a deal for free…obviously! Who wouldnt!? Why would I spent $1000 on marketing just to hand over a good deal to them for free?

    • cassio de almeida

      It might not be a good enough deal then if that’s the case… Try to drive that price down lower or just pass it on to an agent and see if you can get a referral fee.
      Or maybe you have a few buyers that you can call up and not have to spend that 1000 bucks on marketing, Craigslist or here on BP marketplace.
      I’m curious as to how are you spending $1000 on marketing anyway?

  21. Michael Stagger

    I am glad I came across this post. As someone who is planning on wholesaling deals, I try to educate myself by learning from people like yourself. From what I’ve learned you have to know the Fair Market Value of the subject property and get more info about the property like is there a mortgage on the property, if so, how much is owed. Then you want to find out what the asking price is to determine if there is a big enough gap in order to make an offer. Still learning and will continue to educate myself along the way. I plan on starting with houses that are in probate. I know you have to be able to purchase at a price where I could sell to an investor at 70% of FMV.

  22. Gregory Howard

    I am new to wholesaling and still learning, but I agree with you 100%. I have already run across people that give us a bad name. I deal with it everyday as this is what I do for 40+ hours per week. I try to treat everyone as I would want to be treated thereby establishing myself as a reputable person. Great article and I hope more people take note of your article!

  23. Jorge Caicedo on

    Hello Mr Snodgrass, I’m planning on starting a direct mail campaign to find absentee owners..Here’s the thing: I’m going to be assigning contracts and I’ll explain that to the seller and that I’m not gonna actually buy his/her property but assigning my interest in the contract..My dilemma is this: any postcards or letters I’d purchase to use for my direct mail campaign are gonna mention about buying the property..When the seller reads this they’ll think I’m actually gonna buy it, which I’m not…..

    What’s the best way to word a letter or postcard to that effect? or is that even feasible? Thank you

  24. John Daley

    This is really a great post, Brett. I have spent that last couple of years trying to get an understanding of different kinds of wholesaling and have come to the conclusion that the only way to do it properly is to be willing to purchase the property myself, regardless of having another buyer lined up. I don’t make an offer I’m not willing to go through with. Because of this, I don’t waste my time (or anyone else’s!) with ‘skinny deals’. If I can’t get it under contract and purchase it at a great price, I don’t mess with it. Doing business in just the way you’ve described not only keeps me within the law, but it also earns the respect of the people with whom I do business.

    I certainly wish more people would put in the effort and be willing to commit to this model of wholesaling. Sure the risk can be a bit higher…but only if you don’t know what you’re doing. And if you don’t know what you’re doing, you shouldn’t be ‘experimenting’ at the expense of others. The stakes are just too high to be doing that in this business. Learning by trial and error in this industry can be extremely costly…so please get a base of knowledge somewhere else before jumping in. Ultimately it will be to your benefit as early mistakes can quickly cost you your reputation. And in this business, reputation is everything.

  25. Robert Steele

    Wholesalers need to stop advertising bogus numbers. They’re ARV are often way too high and their cost to rehab are way too low. It just wastes everyone’s time when I do my due diligence only to find out that the “deal” is not.

  26. Nancy E.

    Hello Brett,
    This was a great article with a lot of good information. Several points must be emphasized: (a) Integrity is vital to our business – once we give our word we must follow through even if it cost us money, (b) transactions and respect for the services we provide. I have had numerous opportunities within the last few months to deal with some upset investors who believe we (wholesalers) lie and are corrupt. We created this problem and now we must fix it. We will only do business with those who respect our services and business as we respect their. So, to all of my fellow wholesalers out there “treat investors the same way you would like to be treated.”

    Let’s try to maintain good business practices that create win-win situations for all involved.

  27. Kevin Griffin

    I am going to take exception to your idea that you should buy a property instead of putting it under contract. I believe that you are making the deal un-necessarily more cumbersome than is necessary. I tell all my sellers exactly what I am doing (putting the property under contract, to then assign it to a person who is going to buy it), and that the person buying it from me absolutely appreciates the steps/time saved by being able to have me put the property under contract and provide a rehab estimate to them; and that they don’t have the time to do these steps, and are quite happy to buy from me. And I would suggest that wholesalers stop trying to ballpark their assignment fees, and instead charge 10% of the ARV. This is a fair way to make sure that they are compensated for what they’ve brought to the table.

  28. Brett,
    Wow that was very harsh yet informative, you changed my whole view on assigning a contract to a property. Yes i do want to build my business with honesty and integrity and I never thought of not being able to close on a deal because my end buyer didn’t come through. A double closing is much safer and professional. So I learned that a purchase agreement is what I need to use instead of an assignment. Thankyou Brett.

    Life Tree Investments, LLC

  29. Konti Leci

    Wow! What a bomb! Absolutely amazing article. Setting such high standards. I loved every single word on this article, but I will keep especially this in my mind: “I always tell new aspiring wholesalers that I mentor to ask themselves, “If you were a fix and flipper or a buy and hold investor, would you buy the deal you’re trying to sell right now?””
    Such a blessing to read and learn from you, Brett!


    Great article. Funny thing is if you go to the biggerpockets market place you will see examples of people marketing the same property. I am just starting to invest in properties and I cannot seem to find a local wholesaler that can provide properties that we can both make money on. But I am looking for cash flow not flips so that may be my issue.

  31. John Thedford

    GREAT article. I know you know my name and have seen my posts. When you are educating people, promoting honesty, and following the laws I must applaud you. I have met several victims of unlicensed brokers that call themselves “wholesalers”, and no doubt the stigma is there thanks to these types of operators. It is NOT a game as some believe. Real peoples lives are impacted. Being licensed and closing is the key to success.

  32. Wenecio Godfrey

    Awesome post Brett! Are you sure you shouldn’t be on tour teaching wholesalers around the nation how to do it right? 😉 I know there were a lot of RE Investors readings this like it was a breath of fresh air! Keep doing awesome things for the kingdom! God bless ya bro. 🙂

  33. Joe Mueller

    Great article on the aspects of wholesaling that in my opinion (agreeing with the author) that have always needed some improving… Complete transparency is the best policy, with both sellers and buyers.
    We recently had a deal go kinda sideways a few months back, and THANK the man upstairs when we sold it we did the right thing.
    Keep up the good work BP nation!

  34. sabina smailbegovic

    I total agree with you. I have seen the members of this community selling a property someone else presented it to me already. Year ago I call then out of FB and they simply unfriended my. No big loss I don’t want to be in such a company anyway. Then month ago I run into the same scumbag doing the same think. I called him out again but did not bother to go and check back on the post.
    I work with few really good guys and stick with them.

  35. Andrew Ziebro

    #s 1-3 are illegal in every state. Research Jeff Watson, he’s the expert.

    Yes, there’s a lot of crazy stuff going on out there, but don’t think the states’ boards of realtors aren’t taking notice. Again, look up Jeff Watson and get informed or potentially get into a LOT of trouble.

    Texting deals across – HUGE pet peeve!!!!

  36. Nina Grayson

    Excellent Brett!!

    I keep running into Wholesalers who think and act in a lot of the ways you mention here. What upsets me most is that Wholesalers go after Agents’ listings. But what they don’t know (cause they don’t care) is that the Agent has an Exclusive Right to Sell (or should) contract with the Seller and will still get their full commission on the original list price if the Seller sells the property without the Agent’s knowledge. It has to go through civil court, but the Agent will get their commission and the Seller will have to pay attorney’s fees. It is my hope that current law or new laws on Wholesaling are updated/implemented. That’ll weed out the bad eggs!

  37. Derrel Jackson

    Mann I really resignate with this post. I’m an inspiring wholesaler and want to run my business ethical and transparent also. I thought from all the nonsense I been seeing from the industry (Outside looking in) that it couldn’t be possible, until posts like this. Thank you Sir, for the motivation and confidence to build a ethical business!

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