Real Estate Agent · Pompano Beach, FL · Member since 2015 · 249 posts · 73 votes
I saw commercials down here in south florida within the past week from a company calling out wholesellers. Commercial basically said "why sell your house to a so called cash buyer who doesnt have the money?" it continued to give their number where people could call them to sell the home. Seems to be getting super competitive now/
In any state, when you execute a purchase contract you must have the intent to purchase and the ability to do so, this is basic contract law, nothing to do with real estate license law. If you do not intend to purchase as stated in the contract then you are not acting in good faith nor are you expressing your true intentions which is lying, you contract is voidable. If you do intent to purchase, honestly and can show that you can do so but then change your mind, you can assign a contract. But, if you never buy and enter contracts that you always assign, the fraudulent dealing becomes obvious. :)
@Lesley Resnick I see your point, because what service is really being provided? Grandma got 40k when she could have gotten 80k if she knew better?
@Rod Desinord
Disclaimer: I am not and never have been a wholesaler. I have bought several properties from wholesalers.
I'm not sure where I stand on the overall ethical debate, however in response to this one point. Grandma go a buyer when she otherwise may never have known how to sell her house.
Real example of a property I closed on in January. Wholesaler calls says he has a deal "right in my neighborhood" (which is out in the sticks not in a neighborhood at all)
Long story short: grandma/homeowner lives with son in VA. Family home in SC has been vacant for 12+ years.
I paid $50k.
Grandma got $43k
Wholesaler got $7k
10 years ago a grand daughter wanted to buy the home. The bank wouldnt lend on the home because the well pump was bad and the HVAC system didnt work. Grandma thought this meant the house was worthless and had let it sit vacant "to fall down".
Since I could pay cash I wasn't worried about banks. Fully rehabbed this house is probably worth $110k on its best day. It will take ~$25k to rehab it myself, $35-40k if you hired everything out/paid "retail".
The service provided to grandma was:
1) Introduced me to her
2) Educated her
3) Did all the legwork for her.
It was a win-win-win.
I know not every deal or every wholesaler works this way. Just illustrating that they can work this way. This house had no place with a broker/agent because it wasn't fundable conventionally.
@ said above "... a market that I am building infill in."
Does this translate to :
putting together a new local team in a new market, or:
building inventory?
Or both?
What does that mean and thanks for your time.
Andy
What he laid out is pretty much (different numbers) follows a post a wholesaler made last week who is getting sued.
He is probably telling a story of building inventory.
Wind is caused by convection of warn and cooler air mixing, the greater the temperature difference the stronger the wind. It's March, so it gets pretty windy around here as hotter air converges with cooler of milder temperatures. ;>)
Honestly the best way to go is deal with wholesalers who really know the business. In south Florida especially where there is a ton of fraud and liars, it is crucial to background and double check EVERYTHING. I have found that if you are dealing with a reliable wholesaler then you should be ok.
If there is a commercial like that then that is poor marketing. The typical homeowner doesn't know what a wholesaler is. They aren't familiar with that term.