Do Good Wholesalers Exist?

Buying & Selling Real Estate
6yFollow

Do Good Wholesalers Exist?

Thomas Garza
Homeowner · Channelview, TX · Member since 2015 · 97 posts · 11 votes

I think this is less a real question, and more me venting, but do good wholesalers actually exist? I have money burning a whole in my pocket, and I can't find a single wholesaler who has deals anywhere close the right price. I have seen countless properties get picked up by wholesalers from the MLS, only to get put back on a week or two later because no one wants their trash deals.

The formula is simple: (ARV * 0.7) - Repairs. Not (Inflated ARV * 0.85) - Underestimated Repairs.

Does anyone have advice on how to find a GOOD wholesaler? 

1Reply
50 views

Most Popular Reply

Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
6y
Originally posted by @Mary M.:

I am not a wholesaler nor do I buy from them..... however, i wanted to point out that real estate is cyclical.... and many (most?) of the folks teaching how do do this or that in RE only have known post 2008 world where deals were everywhere and certain equations were reality. The thing is, 2008 and after were one offs.  Things have gone back to normal and there wont be those kinds of killer deals anymore. Or very very rarely. 

My suggestion: talk to those that were doing what you want to do pre 2008. Find out how they were able to make money. Because chasing after what was is only going to keep money in your pocket. Good luck!

YUP 70% ARV minus repairs is so 10 years ago.. its just not really possible to scale with those metrics if you are in a market with any type of competition.. that's why he is not finding any they don't really exist unless you spend the money to direct market yourself and go out on the lead appointments your self and close them yourself.

Podcast Guest on Show #222
JLH Capital Partners51 Review
WebsiteView Page
6Reply
See this reply in the discussion

37 Replies

Jump to latestLatest
  • Guy Gimenez
    Investor · Corpus Christi, TX · Member since 2012 · 2k+ posts · 1k+ votes
    6y
    In 20 years of investing, I've bought no more than 1 or 2 properties from "wholesalers" (ie. assignors) because I haven't found the majority of them to be less than honest and completely unreal in their structuring of the deal and their valuation. Don't depend on them to get your deals...ramp up your marketing and get the deals yourself.
    3Reply
  • Ryan Johnson
    Rental Property Investor · Houston, TX · Member since 2018 · 174 posts · 100 votes
    6y

    I agree many of their deals are overpriced. But if you follow their deals they always bring the prices down as the deal sits, Sometimes significantly. A low ball is better than a no ball. 


    I have low balled a few whole salers that initially balked at my price only to have then crawling back 2 weeks later looking to unload the deal. Good luck! 

    1Reply
  • Raven Henderson
    Real Estate Agent · Memphis, TN · Member since 2019 · 59 posts · 40 votes
    6y

    Hi @Thomas Garza ! Try to search for wholesalers on Craigslist, it is literally their playground. Also, you may find a great deal of them at meet ups in your city as well as the live auction. Call the "We Buy Houses" bandit sign numbers too. The majority of the signs are owned by wholesalers. Hope this helps! Good Luck :) 

    0Reply
  • Andrew SyriosPro Member
    Moderator
    Residential Real Estate Investor · Kansas City, MO · Member since 2014 · 10k+ posts · 5k+ votes
    6y
    Originally posted by @Jay Hinrichs:
    Originally posted by @Mary M.:

    I am not a wholesaler nor do I buy from them..... however, i wanted to point out that real estate is cyclical.... and many (most?) of the folks teaching how do do this or that in RE only have known post 2008 world where deals were everywhere and certain equations were reality. The thing is, 2008 and after were one offs.  Things have gone back to normal and there wont be those kinds of killer deals anymore. Or very very rarely. 

    My suggestion: talk to those that were doing what you want to do pre 2008. Find out how they were able to make money. Because chasing after what was is only going to keep money in your pocket. Good luck!

    YUP 70% ARV minus repairs is so 10 years ago.. its just not really possible to scale with those metrics if you are in a market with any type of competition.. that's why he is not finding any they don't really exist unless you spend the money to direct market yourself and go out on the lead appointments your self and close them yourself.

    And given there are buyers for properties over 70%, there's no reason a wholesaler should, in their own interest, leave that much meat on the bone for the end-buyer. With rare exceptions here and there, about 80% ARV is the best I see from wholesalers these days.

    Podcast Guest on Show #121
    0Reply
  • Thomas Garza
    OP
    Homeowner · Channelview, TX · Member since 2015 · 97 posts · 11 votes
    6y

    @Kerry Noble Jr

    I'm looking for houses East of downtown Houston. 77015, 77530, 77571, ...

    0Reply
  • Thomas Garza
    OP
    Homeowner · Channelview, TX · Member since 2015 · 97 posts · 11 votes
    6y

    @John K.

    Do you ever have deals in Houston, TX? 

    0Reply
  • Thomas Garza
    OP
    Homeowner · Channelview, TX · Member since 2015 · 97 posts · 11 votes
    6y

    @Raven Henderson,

    I plan to attend a few meetups soon! 

    0Reply
  • Alpesh Parmar
    Investor · Dublin, CA · Member since 2016 · 344 posts · 228 votes
    6y

    @Thomas Garza hahaha...I don’t think so.

    0Reply
  • John K.
    Wholesaler/Investor · Dallas, TX · Member since 2018 · 260 posts · 222 votes
    6y
    Originally posted by @Thomas Garza:

    @John K.

    Do you ever have deals in Houston, TX? 

    At this time the only properties I am sourcing south of Killeen-ish are MHPs. 

    Sorry.

    0Reply
  • Jeb Brilliant
    Rental Property Investor · Long Beach, CA · Member since 2015 · 623 posts · 155 votes
    6y

    Hi @Thomas Garza I know a few good ones in Indy if you are interested. I have one in particular I like to buy from, he puts all the info on his 1 pager and I thought they were off. So one day we were drinking a little too much and I told him his numbers were off. He retorted my numbers were off and explained it's bc he can get the work done for cheaper then I can bc he rehabs probably 10 houses per month. So I am hiring him to rehab all my deals now and the numbers work out. 

    Good luck in Texas and if you want to buy in Indy hit me up. 

    0Reply
  • Hai Loc
    Specialist · Toronto, Ontario · Member since 2012 · 2k+ posts · 891 votes
    6y

    Good wholesalers do exist. The ones I am referring to are built differently unlike most wholesalers who pay for a $50 crash course and think they know what they are doing. The ones I know have funding or backing and a very good understanding about real estate from family and friends. 

    0Reply
  • Jesus Garcia
    Rental Property Investor · Baytown, TX · Member since 2008 · 94 posts · 21 votes
    6y

    @Thomas Garza I'm in Baytown and I am currently marketing in our areas.  Send me your email. 

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free