What's the worst encounter you've had with a wholesaler?

[Simon Ghandil]

As the title states, what is the worst encounter you've had with a wholesaler?

I work with only four wholesalers total, and that also includes networking daily with them. Since I have started to aggressively purchase rentals, I decided to network with new wholesalers since I was looking to purchase 1-2 a month consistently. 

I get a call to look at a property that was on the MLS. I had this property in my notes to make an offer on, so it was very convenient that the agent decided to work with the wholesaler to sell the house for $20,000 instead of the listed $35,000. In my notes I wrote down that I would offer $19,000 so it was a win-win.

The next morning I travel 40 minutes to the house, and the visit only lasts about 3 minutes. I do a quick walk through, it was everything I wanted for the area. I tell him its a done deal, shake his hand and head back towards my home. 

I receive the assignment agreement in my inbox several hours later in the day, and everything seemed standard but a $1,000 EMD required the very next day and a 7 day closing stuck out like a sore thumb. I talked to my friends and wholesalers I network with, and all of them said that they have never asked for an EMD from their buyers BUT there are some wholesalers who do ask for an EMD. 

When I asked him about the EMD he asked me if $500 was alright with me, and I told him yes I don't mind that after I learned that some wholesalers ask for an EMD. I told him I would go that Monday since I had to travel another 40 minutes back into a neighboring town to drop the check off. I also told him normally I have a 14 day closing versus a 7 day. This was not a concern, he asked me what I would like, and I addressed the EMD and how many days I usually get for closing. These were not requests, but he fulfilled them which led me to think we were going to have a long and successful relationship.

I get two separate calls that day. One telling me that I can go to his partners bank, and deposit the EMD check into her business account. That was a red flag, but he said he said that so I would not have to drive 40 minutes to the title company. A nice gesture, but I declined and said I would take it to the title company. Later that day I get another call saying that I would not be taking the EMD check to the title company, but I would be mailing it to the listing agents realty company (who was his partner). Then I started to get worried because things were getting flip flopped around, but after speaking on the phone with him it made sense because the house was still listed with the realtors realty, so the check would go into escrow. His partner miscommunicated with him, so after our phone call I said it's alright, and that Monday I would drive to the realtors office, and drop the EMD check off along with the assignment contract.

Today I get a phone call from the wholesaler. The first words out of his mouth were "Simon, we decided to sell to somebody else". His excuse was that his partners weren't comfortable selling to me and they thought I was hesitating to close because I was given a 14 day closing instead of the 7 they provided. The rush was because the seller is very elderly, and she was taken to the hospital today and needs to sell the home so she can go to a retirement home. 

The concerns were that I was only putting down a $500 EMD and that I had a 14 day closing versus a 7 day closing. I never requested any of that. He asked me what works for me, and I never gave out a number for the EMD, HE did. I merely told him I get 14 day closings, I never told him I need a 14 day closing or I won't buy the home. I usually get 14 so my private lender has enough time to get the time and sit down with me so we can talk, and cut me a check. Never did I receive a phone call about the seller going to a hospital, nor did I receive a phone call about discomfort. I would have happily done a 7 day closing and paid $1,000 for an EMD if that was the absolute necessity. Why would you send me an updated contract if your "partners" weren't okay with it? I never requested any changes, I only had questions. I also told him my lender was ready and I was going to pick my check up next week. If only he had called instead of assuming, I probably would have bought a lot more houses from him in the future. 

The hilarious part of it all, is that he still said that we can do future business together. I had to laugh at that one. I shouldn't be attached to properties, but damn I loved that house. 

So whats the worst encounter you've ever had with a wholesaler? I know @John Thedford has had a couple...