Comical new wave of wholesalers

7 Replies

I'm not one to dog wholesalers. It's how I got started.

For me wholesaling is: Marketing to off-market owners, analyzing a property, negotiating with the seller, and having the deal "funded" before even going under contract. I have private funds I can use to close if a buyer falls through and I personally fix/resell as well. 

This year I got the following treats: 

1) A gal snagged my email off of BP and added me to a daisy chain email offering me a local investor's deals with a $15,000 mark up! 

Poor girl had everyone on one email. I replied to all with his website link asking how she added 15k of value to this particular deal. I also requested to be removed from her list. 

2) A wholesaler filled out my "We Buy Houses" from on my website a half dozen times with FSBO's marked up $500.

He got a polite "knock it off". 

3) A wholesaler went under contract on an MLS deal and generously offered it to me a whopping $3,000 below MLS list price.

I forwarded his email to the listing broker recommending she double check his POF and it's source. She shouldn't hold her breath on it closing

Ryan Dossey, Real Estate Agent in IN (#RB15001099)

Ergo 99% of folks who think they can jump in and be wholesalers end up Not doing anything.

our industry is overrun with this type of activity.  I personally will not let anyone put me on the buyers list... those who know me know me LOL... its funny when one will actually call me and ask and I tell them very firmly I am not interested to be on your buyers list..  they find me because this is what they are taught look up owners who have bought in the area for cash... so as you can imagine I get quite a few hits yellow letters post cards etc..

I don't know but to my way of thinking they are doing it *** backwards.. they should be looking for money first so they can close.. control the asset then resell it ... instead of what amounts to selling RE without a license

It's unfortunate to see new wholesalers messing it up for rookies like myself.  I've been focused on calling up active cash buyer investors and getting their investment criteria.  I think if I capture their criteria accurately in my database then I won't even need to spam a "buyers list" with properties that don't match up to everyone's criteria.  Once I have a sizeable amount of investors I'm hoping to be able to just call my investors direct to discuss the deal.  My goal is to be more customer service oriented and give my interactions a more personal touch.  It'll take some time but I don't see a lot of wholesalers taking this approach.   

Wouldn't finding the money first be a little more difficult for someone starting out since they don't have an established track record yet?

I'm with @Terry Odom . After spending some time on this site, I'm starting to hate the word "wholesale." I don't want to call myself a wholesaler because I want to differentiate myself from those out there trying to make a quick buck.

I had a blog post awhile back about wholesaling ethically. I can try and dig it up. Brett Snodgrass just posted a "BP Blog" that is pretty similar to my views on the subject.

Ryan Dossey, Real Estate Agent in IN (#RB15001099)

Why operate as an unlicensed broker? You BET they have a bad rap with all the scammers posting they have no money and want to know how to get out of a contract instead of making it work. I always tell people get funding first. Don't leave a seller in a bind. They TRUSTED they guy writing the contract and generally don't know better. How many of these operators would sign the same kind of contract they want a clueless owner to sign? None. Close on the deal and flip. Then you can identify yourself as a flipper and you can bet you will get a lot more potential REAL buyers instead of the fakes and flakes. 

John Thedford, Real Estate Agent in FL (#BK3098153)
239-200-5600

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