New Wholesaler Lied to?

4 Replies

My name is Cydney (unisex name. I'm male). I'm attempting to start a real estate business and looking to start with wholesaling so that I can get a better understanding of the RE market and earn the money to expand into flips and buy/hold. As I've been looking for cash buyers for when I get my first property under contract, I've been told by 1 of the local "we buy houses" people that they don't typically work with wholesalers and that wholesaling is shady and dirty kind of the way people perceive used car salesmen. Is it likely that this "we buy houses" guy is also a wholesaler and he responded to me with the intentions of limiting competition in his local market? Also would it be best to reach outside of my local market for honest general advice so they won't worry about me encroaching? By the way, I'm in Kansas City. 

Don't listen to that person. There are wholesalers in the U.S. making hundreds of thousands of dollars. I would suggest finding a house to wholesale. If you get it at the right price, you will find buyers easily. I live in CA and invest and wholesale In Kansas City. You can wholesale anywhere in the U.S. . You just need to know the market that you are wholesaling in so you don't waster your time or the time of the cash buyer. When I tied up my first wholesale house another wholesaler pretended to be a cash buyer when he actually was trying to wholesale it himself. If he was honest upfront, he could have worked out something.

The "We Buy Houses" guy is a wholesaler, and trying to limit his competition.

He is also telling the truth about how wholesalers are perceived.

What's the saying? You can catch more flies with honey than with vinegar? His attitude towards you is his loss. Don't let it be your loss.

I am guessing that there is plenty to go around where you live so if I were you I would put what he said behind you and just find other buyers. And don't let it keep you from calling other "We Buy Houses" signs. 

Doug is right, just keep calling the other "We Buy Houses" people in your area and don't worry about that guy you talked to. And remember, when you have a good deal, the buyers will be around.

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