I am in the DFW area and looking for something to rehab or buy and hold. I am having trouble finding any deals that have the room to make any profit on and am now looking at wholesale "package" properties that have a, what seems like, decent margin. I just don't know about buying a property through a wholesaler??? It seems like an ok thing but there is no way for "Due Diligence" on my part due to the fact that it is a non-refundable down payment and a very short closing period. What is the general feel for wholesalers in the DFW area and how do you all deal with them?
Thank you for your input!
First and foremost check everything including rehab costs and the CMAs before putting down you money. Work on developing a relationship and concerns will quickly go away. Your an agent so you understand how to vet a buyer. Wholesalers are looking for similar.
Be sure any 'non-refundable down payment' is made payable to a title co. and not the individual wholesaler or their entity. There have been threads here on BP about wholesalers taking several of these from different folks and disappearing. It can be a shady business. Good luck @Erick Jordan !
Erick There really is no general fee for a wholesaler, either the deal they bring you meets your requirements or it doesn't. If you get a deal and make the money you want to make does it matter how much they make? Due diligence is paramount (just like any other deal) What's nice about REI is you have the opportunity to do your due diligence and make sure your getting what you want. If the wholesaler is not lettering you do that, then you have your answer.