I am a cash buyer...been contacted recently by 3 different wholesalers trying to sell me the same property...each one has a different price...not my usual type investment but I went to look because you never know...the first guy didn't have a key so we had to stand on a bucket and climb in the window...in spite of my better judgment I went ahead and said I would take the property at his price...then I get a message that the price he quoted was wrong and it was a "clerical error" and the price is really higher...the other two supposed wholesalers have contacted me about another property without clear title but I want NOTHING to do with them now...they are all working together to sell class D houses...just don't jerk me around...it is not good to piss off cash buyers !
Not the norm but not unheard of either...just a different version of the daisy chain. All trying to sell something they neither own nor have a interest in. They stopped calling me when I asked the to send me their contract with the price redacted.
I give wholesalers 3 opportunities before I bang them from my list. You live and learn who is full of .... and who is real.
You never know from which wholesaler your next deal will come from.
It real gives us wholesalers a bad name when there are guys out there doing this. In my business, I strive to give all the info I know to my buyers. I don't leave anything out. It's not a deal unless we all win. Nobody wants to work with a liar.
When you saw the same deal from three different wholesalers, it was perfectly reasonable at that point to ask each of them to provide a copy of an executed contract. Whichever one could show you the contract was the one you deal with -- the other two should get filtered to your Junk Mail folder forever more...
Do your due diligence before wasting your time leaving the house...
So how do these wholesalers make any money if they do not have a contract? Are they just hoping to get in on the action if they bring an interested party to the table?
Scrub the wholesalers from your list. Daisy chains or newbies. Don't give them another chance.
In future, ask for copy of executed contract or option to purchase.
@Glenn W. the way I've seen this play out is as follows. Investor A has the property under contract and advertises the property to the investor community. Investor B (who has no interest in the property) sees the advertisement and also advertises the property to his buyer database...but at a higher price . If investor C agrees to buy from investor B, only then does investor B get the property assigned to him/her from Investor A.
It was a guy I know slightly and he is trying to get in wholesaling so I was willing to put up with a few snags...however now I'm fairly certain that what they are doing is trying to get money from an investor and then approaching the home owner who is in distress and making them an offer with my money...the final final straw was when he told me not to tell other investors what the address of the house was even though another " wholesaler" had it listed with the address on Craig's List...it is just a mess that I don't need and I am not going to work with them ...that said... I do hope they learn what they are doing or quit trying to cut corners but by then they will have lost a lot of the core cash investors...
It might be worthwhile to spend time creating your "herd" of wholesalers, culling the bad ones and nurturing the healthy ones.
This coukd be as easy as a weekly breakfast meeting. All pays their own way.
Create a written criteria for deals and what you'll need to see from the 'wholesaler' before you are going to consider pursuing and going any farther. If that's a copy of a redacted contract, then so be it.
Frankly, you are probably NOT dealing with wholesalers but untrained bird dog lead generators. They may not be lying so much as completely ignorant.
Your job is to spell out what you need to look at a "deal" and what you require to go to the next step. And, what each written step is.
Be kind to yourself and eliminate the time vampires from your life.
the reason you did not get the contract's with redacted prices is you lost them with the word Redacted...!!
Exactly they don't know what a deal is or not... When I was in Timber business.. I had a bunch of timber bird dogs... after running out to look at that great patch of Christmas trees a few times... We had to do onsite training and I literally cut them a length of rope
I told them walk up to a tree At DBH ( Diameter at Breast Height) put the rope around if you could put the rope around and measure. If it did not hit average of 30 inch's its to small.. then look straight up the trunk what do you see.. If you see no limbs for 20 to 30 feet that is good but if you see all sorts of big limbs well those are not so good. Et etc
Saved me a lot of looking at Frogs to kiss a prince.
@Jay Hinrichs That's classic my friend.
You said you knew one of the guys right? Explain to him what he's doing right and what he's doing wrong. If he blows you off, forget about him he's not worth any more time.
Coming here and telling us is great and hopefully teaches others on this site what not to do but it doesn't help the noobs in the real world. On this site we try to help and encourage others. Are we doing this in our daily lives?
Merry Christmas and God bless.
It is literally true that you can succeed best and quickest by helping others to succeed.”
- Napolean Hill
Just sounds like a couple bird dogs helping out a busy wholseller. Happens a lot around here, just guys helping guys, everyone trying to make a buck. I will ask who I am working with, what they have it under contract for? and how much all wholseller/ bird dog fees are?
See how they behave and qualify you. When I wholesale I try to make sure that the cash buyer is actually liquid currently or has the backing of a hard money lender that can close on my time line. If they take the time to qualify you AND get to know your farm and property preferences then its the start of a potentially great relationship.
The frustration goes both ways. I have seen many 'cash buyers' fizzle out at the last minute due to lack of ....surprise surprise ..... cash !
Good wholesalers know the time element and are not afraid to take on a lot of things on their own. I have a cash buyer that I owed a deal to (the deal was lost due to a stupid HOA lack that noone saw till too late and we walked away from that). The next deal that came that met his criteria I went to him first- waited for him to get his money in and then took on all the closing costs of BOTH escrows on our dime. A good cash buyer is a great asset and I do everything in my power to not screw them over !
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