Wholesalers suck. Well, not all of them, but there are some out there who give that side of business a bad name. Selling contracts out of the back of a truck or in a coffee shop.
Wholesaling is an art, it takes a skilled and disciplined individual to find quality deals that everyone will make money on. People often forget what it takes to acquire a deal. Its a numbers game, the number has to be right in order for an investor to buy it. Or else the deal will just sit and die. From the ARV to the rehab amount, we often see numbers that are very far off.
How do you solve that problem? Well, you align yourself with a good wholesaler. You should consider them as part of your success team. Because, lets face it; most people are not making 100 plus offers a week, mailing out thousands of letters, driving targeted areas for dollars, or crawling through ditches, climbing fences or shaking palm trees to find these deals. There is a lot that goes on behind the scenes; and they are there to take that part of the leg work out for the investor. Think of a wholesaler as your personal market analyzer. However, you should never take what they say for face value, ALWAYS do your own due diligence.
Through trial and error you should find the right wholesaler, and you and them will be prosperous in this business. One sign that you could look for, is the volume of business they are doing, and their level of professionalism. Hope this is helpful.
Best of luck to your investing endeavors. Much success.
WE buy well over 100 properties a year actually over 200 and I would say only 10 or 15 come through wholesalers.. I simply don't see them as a big component to your team ....
but I agree with you about not trusting a darn thing they say or do... LOL.... ARV usually a joke Repairs pulled out of thin air...
No licenses in states that require it... acting as broker when they are not.. those sorts of nefarious activites give it a bad name for sure.
As an investor, I need to buy a house at 70% of it's value.
Wholesaler has expenses and needs to make a profit.
Getting someone to agree to selling a valuable asset for about half of what it's worth is a tall task.
Many say it's not possible, many have figured it out. Most are trying but haven't figured it out.
The difficulty of the job combined with the ease of entry is why wholesalers suck.
If doctors could practice medicine after reading a blogpost or attending a guru seminar, doctors would suck too.
@Jay Hinrichs Yes, I have seen inflated ARV's, comps that don't belong; and rehab budgets that are impossible to fathom at that number. However, as it may be not all wholesalers are bad at providing deals. They do the things that most investors are to lazy to do. Your energy flows, where your focus goes. If you as an investor is focused on too many things, you take away from the activities that would yield the greatest return.
I'm sure you will agree, that there is a lot that goes into finding a deal and piecing it together. It sounds like you are rocking it over there in Oregon or wherever your investing. I'm curious, what methods do you find work best for you that brings deals to your table?
I will NOT let this thread pass without a comment..
Many do. Some operate honestly but many don't. It is NOT a game to put a house under contract, deceive the seller, and hope to find a buyer. That is unethical, dishonest, and may harm a seller. The argument that they are offering a service is pretty shallow. Shaving off equity in their pockets and passing the deal on while shorting the owner is NOT a service. BUYING the property, without using deception is the difference. As an agent, I can give a seller an honest opinion of FMV but also offer them less, in cash, as an investor. This is where having an agent's license can be of value. Had a nice talk with @Jerry Puckett yesterday. I "hijacked" a thread and he called me out for it. I like Jerry...nice guy..and won't hold it against him what he does. I will always refer to him as an "unlicensed broker" but I am sure he will take that in a friendly way. BTW, there are plenty of agents that suck as well. Find good people to deal with that are honest ..and follow the people that are making things happen in RE. Imitate success to achieve success.
What sucks is stereotyping. The titillating and inflammatory headline used to get attention is tantamount to flame baiting which is of course a violation of the forum rules (not that many read of follow those).
I see an effort to clean it up in the first post, but that actually makes it worse, making the headline appear to be nothing but a disingenuous and feeble attempt to get attention. Bait and switch. Any attempt to add value beyond that point is wiped completely away by the manner in which it is presented.
BTW, there are plenty of agents that suck as well. Find good people to deal with that are honest ..and follow the people that are making things happen in RE. Imitate success to achieve success.
Couldn't agree more @John Thedford . Thanks for the shout out, enjoyed chatting with you yesterday. You are indeed a stand up guy who takes responsibilty.
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