Working with a Wholesaler as a new investor

7 Replies

Not sure how innovative this strategy may be but... as a new investor, would working with wholesalers be a good idea? Of course I understand the importance of doing your own due diligence but I would imagine that, by nature, wholesale properties are some what of a good deal. The wholesaler had to do a good bit of research and negotiating to get the property under contract.

So taking wholesale deals, running your own numbers off of what's presented and moving forward would seem like a good way to at least have a funnel of potentials coming your way. The wholesaler has done some of the "hard" work already, you would just be double checking and making sure it makes sense to you.

I do understand that this may be a naïve way of thinking but I'm curious to know why or why not this would be a good idea for a beginner.  

Working with a good wholesaler can be lucrative, especially if they get lots of deals.

Keep in mind a LOT of wholesalers have no experience with renovations, construction, ARVs and even homeownership. A lot start out wholesaling because they have no money and no experience and were told it's a great way to start in REI. These types of wholesalers usually end up attempting one or two deals and disappear. You need to find the honest (one that doesn't hide their intentions from the seller) wholesaler, who actually has solid deals and then become one of his go to buyers.

Just always run your own numbers.

Originally posted by @Frankie Woods :

I wish I would have started using wholesalers :(

 Why is that? What experiences did you start with?

Here in my area finding a good wholesaler is like finding a needle in a haystack.

99% of them don't have real deals and don't have the properties under contract.

I worked with a newish realtor in the beginning.  I still got pretty good deals, but the wholesalers just make it so much easier.  Plus, you know where the actual investors are looking.  Finally, the deals tend to still be better even with the assignment fees.

@Jimmond Thomas

Disclosure: I work for a wholesaler myself.

With that aside, we have a TEAM of people who work to find and negotiate the best deals. Find a wholesaler that can bring you good, consistent deals, run your own numbers on them, and go with the deals that look good. No harm in it! 

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