Wholesale to the 3rd, 4th, 5th Power!
As a "cash buyer" I am (or was) on many wholesalers' buyers lists. There is a fairly recent trend where real estate agents/brokers are getting on the "re-wholesale" bandwagon and basically adding on an additional $5k-$30k to the original wholesaler's contract+assignment price.
So a $100k property (which already includes the contracted wholesaler's fee) comes in on one list as $106k and then on another list as $114k and yet another list for $120k (or more). And because they are licensed real estate agents/brokers, they can legally advertise these off-market deals and basically put as much on top of the "connection" that they got it from, as they want.
This basically is making wholesalers worth a lot less when it comes to ranking where our deal flow comes from. If wholesalers are going to "get into bed" with so many other wholesalers and/or real estate agents and the property gets tagged with 2, 3 or 4 levels of "fees" then why waste time with wholesalers as a viable source of "good deals"?
I literally got a deal this morning, from a wholesaler, for $90k on a house. Then about 3 hours later, I got the same property emailed to me, by a real estate broker (that also wholesales) for $105k.
I'm sorry but as a licensed real estate agent/broker, unless you are somehow adding value to the deal, how are you putting a $15k fee on a deal that you will do absolutely nothing for??
I believe this is contributing heavily to why it is so hard to find good or great deals here in Florida and specifically in South Florida.
I'd love to hear everyone's thoughts and opinions on this...