Answer to Wholesale Bashing.

This post is one that is in response to a thread started by a BP Member

That talked about wholesalers putting out BS numbers.

I thought the response would serve well to everyone.

Wow.So many points to talk about.LOL

You are right Dave.There are so many guys out there that don't know what they are doing.

I get newbies all the time that try to partner with me on a deal and don't have a clue.They put anything under contract just to try and make sugar from sh*t and It blows up in their face, they lose credibility, and waste the time of people who actually could be buyers if only it was a true deal.

I will make 2 points.One for Dave who started the thread, and One for the newbie wholesalers who don't have a clue.

Point #1.For Dave.

Emptor cavete=Buyer beware.

I suggest you don’t even do business with a wholesaler without having a first time 5 minute conversation about their experience in Real Estate, how did they come about this property, and how did they come up with their ARV.

I actually do the same thing with people who call about my deals.I’m trying to find a buyer, however if this is my first time speaking with them, I will ask them about their real estate experience, if they understand about assignments, if they understand that I’m wholesaling the property, and basically have a meeting of the minds about what my intentions are and If I can answer any questions for them.

That is what a good wholesaler should do.If someone doesn’t want to give me 5 minutes to have a meeting of the minds, they are not someone who I want to do business with anyway.I don’t care how good the deal is.You should do the same.

In defense of the comment about another chance to bash wholesalers…

There are just as many BS cash buyer, time wasting, wanna be investors out there as there are wholesalers who don’t have a clue.

I’m an Investor first, and a wholesaler second.I keep 1 out of every 5 deals on average to either fix and flip, or hold for rentals.Every deal I contract is one that I would keep or fix or flip myself.I just like the idea of a fast nickel instead of a slow dime.Not to mention that my strengths are in the areas of Marketing, Negotiating, and Sales….I love that part of the business and wholesaling fits that mold.

So let me put this out there.I’M PROUD TO BE A WHOLESALER.11 years since my first real estate deal, and I have been involved in the buying or selling of about 200 deals residential and commercial.

I did it morally and legally, and paid my dues.That’s why my number is public. LOL…

Sorry about the emotional blowup BP… I just had to get it out..

Now

Point #2.For Newbie Wholesalers.

Go get educated.I hate to agree with the wholesale bashers, but they are right.Learn how to do your business.Stop thinking that you can read a 20 page ebook, call up some “Handy Man Special” signs, partner with a wholesaler, market their deals, get a cut, and that makes you an investor. It does not.

Real wholesalers, know their business, know what their buyers want, and know how to keep them coming back.They know marketing, how to talk to sellers, and negotiate without lying and being a scumbag.They know how to evaluate a deal for a true ARV, true repairs, and a true profit.You don’t have to fudge numbers.Present the true ones.If someone wants it they will buy it, if they don’t then they won’t.Plus true numbers will tell you information about the deal, the market, and where you need to improve in your business.Here is something to think about newbies.

I give my buyers a copy of my original purchase contract.This builds tons of credibility, I let them know how much I’m making up front.I make money wholesaling through volume, good business practices, and doing what I say I’m going to do.We all should do the same no matter our experience level in Real Estate.

Also.. Be ready to defend yourself against the negatives… If you are good and honest about what you do, It won’t be a problem.

I have said my part.That was a great topic Dave.I guess I needed to vent huh…LOL..

If anyone has questions they want answered from a real life wholesaler… connect with me.

Good luck all.