Reliable Wholesalers
Scott AlfanoBusiness Member
Lender · Seattle, WA · Member since 2013 · 64 posts · 20 votesHow has your experience with wholesalers in the Central Florida area been? What criteria do you use when deciding whether a wholesaler has a good ear to the ground? How much of their ARV and comps do you take to heart versus running the numbers yourself?
Of course I know you should always run your own numbers, but when a wholesaler sends you an email with something like a "63% ARV" do you get excited or skeptical?
How many wholesalers do you generally communicate with? Are there any that you particularly recommend?
John, then you have not dealt with me! I have been a full time investor for 17 years and all the comps I provide my clients ARE based on real solds. Remember ARV calculations are based on a number of factors, not just solds. Unless you have access to the MLS to see the real differences between the sold houses (descriptions of condition and pictures) then it makes it difficult to come up with a real ARV. I AM a licensed realtor in Florida. Yes I provide many of my properties to my clients that I don't have an equitable interest in because I am an agent for the sellers. Providing a contractors written estimate of repairs needed is NOT NECESSARY when we have been doing this for so long we can give AN ESTIMATE of rehab costs. Yes look at all my threads and I am doing nothing but helping as many people as I can.
And YES I am selling properties with the best info that I can. Each property is different, so I am selling properties from 26% to 82% ARV. Some need alot of work and others don't with tenants already in place. I am marketing 57 properties all over central Florida with properties for all types of buyer interests, from Single Family Houses, Duplexes, Triplexes, Quads and small multifamily. I work with local private lenders that can provide up to 90% financing for purchase and rehab costs as long as the total is no more than 70% ARV. And I have another team that can rehab the properties, sell them or manage them with tenants.
I am also representing a company that owns 25 small (less than 50 units) multifamily properties in Chicago. They even provide owner financing and a complete turnkey operation.
PLEASE don't judge me based on your bad experiences with other 'wholesalers'.
I think you ALWAYS have to run YOUR OWN numbers, including rehab numbers. I like to use contractors that I know and trust. I get emails from wholesalers and Realtors, both. The writeups are somewhat overhyped a lot of the time and the numbers are a little exaggerated. But, if I am interested, I do my own checking. I no longer take their word as factual. But, they do provide a service and I am glad they do.
Sometimes I see the same property on MLS for the same price that a wholesaler gave me. I wonder why.
That said, I sometimes run across a property that I don't want and refer it to others for a nominal fee. Does that make me a wholesaler? I just tell them as it is. I am honest and will never deal with anyone that has a flawed reputation. I don't want any part of that.
I think you ALWAYS have to run YOUR OWN numbers, including rehab numbers. I like to use contractors that I know and trust. I get emails from wholesalers and Realtors, both. The writeups are somewhat overhyped a lot of the time and the numbers are a little exaggerated. But, if I am interested, I do my own checking. I no longer take their word as factual. But, they do provide a service and I am glad they do.
Sometimes I see the same property on MLS for the same price that a wholesaler gave me. I wonder why.
That said, I sometimes run across a property that I don't want and refer it to others for a nominal fee. Does that make me a wholesaler? I just tell them as it is. I am honest and will never deal with anyone that has a flawed reputation. I don't want any part of that.
You pretty much hit the nail on the head, anyone who says they worked with a 'bad wholesaler' because they said the ARV was $500K and it was realistically $200K, then you have no one else to blame but yourself for not doing your own research.
In this market, if it is a good deal, regardless if it at the MLS Price it does not matter, sometimes when it comes to the Hubzu & other auction sites, a property will be marketed above the MLS price because it got bid up so high, all depends on how the numbers work out.
If you put a property under contract, and then sell it to someone else for a nominal fee, yes that essentially makes you a wholesaler, welcome to the club!
Well said @David Wolf .. wouldn't mind getting on your buyers list for central Fl. Everywhere from Tampa to Ocala, and Orlando.. of course the city's in between also ..
God Speed,
Michael Short
I just think people mistake the difference between bird dogs (someone who finds a deal and dose a guesstimation of cost) and a wholesaler (some one who puts their name on the line by engaging in a sales contract after doing a complete estimation.
Also i think some investors expect way to much out of both of the above mentioned they are a free service and it seems like investors want people to contact them with a 100% deal with no risk and all the leg work. walking a contractor through a house and getting an actual bid? How many times do you think you can do that before you are "the boy who cried wolf" to all your local contracting companies. you as an investor YOU need to do your do diligence after someone brings you the outline of a good deal even if they have a real estate licence or a contract anything less and you clearly are not a seasoned investor of anything.
I know a lot of investors say 80-90% of deals from wholesalers are worthless but guess what 80-90% of leads that wholesaler went through were worthless its all part of the funnel they talk about extensively here on BP. A wholesaler or a bird dog dose the nasty telemarketing, foot stomping, street sign hanging work that most don't want to do and investors don't have time for. It cost an investor nothing to turn down deals all day so in the spirit of net working maybe some should put in perspective that you shouldn't complain about a wholesaler or a bird dog unless YOU want to go back to beating the pavement just be happy you're at the end of the funnel If I send you a thousand crap deals and you make 30,000 off one and you doing work didn't even start till you knew you would make money then be happy I'm a good wholesaler for you
Wholesalers get a bad name just like lawyers, car salesman, and mechanics. The reality is though you find a good one you are golden.
Hopefully that works out well for you @Tamatha Mallard
