Petition for BP to Discontinue Wholesaling Discussions...

311 Replies

FUN thread. Many know my thoughts on MOST of these operators. Any "wholesaler", agent, investor...operating LEGALLY AND HONESTLY is OK in my book. The big problem is there vast majority of these operators (as evidenced on BP) have -0- knowledge, but worse yet, many have no integrity. We recently had a "wholesaler" at our local REIA meeting. The either assign the contract OR close. No shenanigans that I know of. There is really no correlation in my book between "wholesalers" and licensed agents. If licensed agents pulled many of the stuff some of these operators did they would be sued AND lose their license as well. This is no licensing required for "wholesaling". If anyone saw my thread on the top ten reasons agents get sued, one of them was fraud and another misrepresentation of value. There are a LOT of these operators calling themselves "wholesalers" who operate this same way but without the threat of loss of their license. I almost always agree with Jay..and his post here is no exception. Get on title. Once you own it you can do with it as you please. Call yourself a "flipper" or "wholesaler" or "investor". Sleazy operators calling themselves "investors" while misleading sellers, never intending to close, and not having funding, hurts everyone...but in the end the homeowner is the victim! There should never be a victim in a business deal.

I hear you @John Thedford  and your concern about the lack of integrity amongst many people who call themselves "wholesalers, investors, etc." is the very reason that my business partner @Jason Fitzgerald Smith and I started our company.  We saw an opportunity to adhere to a higher level of professionalism and we've been fortunate to meet and network with some incredibly honorable people both here on BP and in our local SoCal market.  We work only with experienced and well funded fix-n-flippers, and we stand behind our offers - willing and able to close on any deal we can't assign.  We believe that we can do well in this industry by doing good for others (sellers & buyers) & so far we've been proven right.

I think any method of getting property deals to private investors is a good thing as long as the commission/mark up isn't crazy. Sometimes it beats spending hours looking through realtor/Tricia/loopnet until the early hours. I'd be interested in Florida wholesale deals.

I do think that we need to disclose the difference between a wholesale and assignment deal.

Wholesaler actually closes, an assignor simply sells the contract...

Who should we be more concerned of?

Thing is the homeowners do not know unless they were keen enough to ask the "buyer" for p.o.f.

If they were to actually do this, it would probably reduce the number of folks that don't know what they're doing and keeps things on more of an ethical level..

@Ralph C.

Agreed. I refer to non-licensed individuals (excluding their drives license of course LOL) as unlicensed brokers. A licensee, offering discounted properties at "wholesale" makes sense. I am meeting a lady this afternoon to file on a fraud and scammer. Some of these guys have been shut down by the State of Florida and promote their garbage on BP. Haven't seen one of them yet posting about being shut down:)

when I first got started as a Real Estate Broker in NY many years ago, the #1 term that was the "buzz" in the education was:

Caveat emptor /ˌkævɛɑːt ˈɛmptɔːr/ is Latin for "Let the buyer beware"[1] (from caveat, "may he beware", a subjunctive form of cavēre, "to beware" + ēmptor, "buyer"). Generally, caveat emptor is the contract law principle that controls the sale of real property after the date of closing, but may also apply to sales of other goods. The phrase caveat emptor and its use as a disclaimer of warranties arise from the fact that buyers typically have less information about the good or service they are purchasing, while the seller has more information. The quality of this situation is known as 'information asymmetry'. Defects in the good or service may be hidden from the buyer, and only known to the seller.

A common way that information asymmetry between seller and buyer has been addressed is through a legally-binding warranty, such as a guarantee of satisfaction. But without such a safeguard in place the ancient rule applies, and the buyer should beware.

It is ALWAYS the buyer's responsibility to perform due diligence on ANY & ALL perspective deals or transactions. I can understand concerns voiced here, however IMO rather than censoring terms the discussions would be better served by explaining to the unsuspecting some of the due diligence steps to take. Education & Knowledge are the keys to avoid being "cheated" or being taken advantage of.

I dont think its a problem to be an un licensed wholesaler as long as there is full disclosure. I like to tell the owner who I am, what my business does, I let them know I make no promises, I wont put a property under contract until i know I have a buyer, but i do have full permission to market their property. Wholesalers are needed as well to find those good deals that aren't on the mls and to minimize the time with dealing with the owner. 

Just like any other profession....there are good ones and bad ones. I've spent over 20+ years in corporate america on the sales and marketing side....and let me tell you the turnover is out of the control! There are just as many horrible sales people as there are good. Same thing with real estate agents.....some are good, bad and ugly and all in between! And guess what...same thing with wholesalers! A good wholesaler is just as valuable to investors as there GC is or there lender.

Maybe instead of attacking wholesalers.....why don't you spend your time attacking the people who claim to be "guru's" telling people that you can invest in real estate with no money! Go after the guys who are putting that idea out and not the little guys who are trying to make a living or break into a new industry. We all have to start somewhere......

Just keeping it real!

I agree with @Lee S. If wholesaling is not your cup of tea, then ignore it... Whether or not its discussed on BP, wholesaling will still exist and be practiced by many looking to break into real estate with limited funds. 

Many if not most have no idea of what they are doing, asking questions such as "What do I do now (self confession)" and only mark up prices with their margins.  Then when there "contracts" fail, the end seller and buyer have no recourse.

I'll not use derogatory terms, buy boy is that ever tempting.

I vote resoundingly YES for dropping the subject.

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