What is your opinion on wholesalers?
Good morning BP,
I have a couple of questions this morning
-What is your opinion on wholesalers?
-Have you had a good experience when working with a wholesaler?
-What has been your biggest draw back from working with wholesalers, when purchasing properties to flip?
I am a licensed real estate agent who works at a national wholesale brokerage. I started this path to build capital so I can start purchasing my own properties to build a rental portfolio. As well as learn from the investors I work with, make connections in the industry and learn real estate investment from the inside out. My company has a five-week training course that teaches you all of the ins and outs of the wholesaling business. The training is intense, but the training also never stops and that is what makes me good at my job!
However, I have many... "wholesalers" reach out to me who really do not have a clue in the world what they are doing. These people bring me daisy chained properties with inflated ARV's, laughable rehabs and obnoxious sales prices. All of this to say, that these kinds of wholesalers tarnish the reputation of the wholesalers who are in this business to help people on their path to financial freedom. I have seen many investors cringe at the word wholesale because they had such a bad experience with one in the past and officially write wholesalers off.
I absolutely love what I do, I love getting to meet people that started with nothing and were able to build an empire for themselves and their families. I love helping home owners who are on the verge of foreclosure pay off their debt to start over. Families who had a house fire and lost everything, being able to give them a fresh start. I also love helping people on their journey to financial freedom while helping them build that generational wealth.
With that being said, What are your thoughts?
Wholesalers in the Real Estate industry can be a huge headache for buyers, sellers and agents alike. Most are inexperienced, lazy, and have no understanding of the Real Estate market. They make promises they can't keep and waste everyone's time with poor deals that just aren't viable. It's hard to find good wholesalers out there who can provide value to all parties involved in a Real Estate transaction; unfortunately the bad ones just outweigh the good ones. Real Estate professionals should be wary of dealing with untested wholesalers who don’t put in the effort to understand their craft or take each deal seriously. An experienced wholesaler is one who understands not only how Real Estate markets work but also what it takes to create a successful Real Estate transaction. They should be diligent, organized, and have a deep understanding of Real Estate law and regulations. When you’re looking for real estate deals, it’s important to find someone who is reliable and knowledgeable in order to make sure that the deal works out for everyone involved. Otherwise you run the risk of wasting your time with an inexperienced wholesaler who won't get you the results you need.
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Real Estate Agent Texas (#005416)
- 832-889-5607
- http://www.buywithjaythomas.com
- [email protected]
- Agent Sales Representative at BiggerPockets
- Fort Collins, CO
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Quote from @Bob Stevens:
Quote from @Adam Macias:
Quote from @Henry Clark:
My mother taught us to eat food even if from someone you don’t like.
Pick wholesalers who are in the geographical area you want. Train them in the types of property you’re looking for. Develop a fee based approach for them. Tell them how you want deals Served up.The real question is, why don't you like wholesalers?
Why? We all responded to that question. 99% are clueless, that's why . When you hear, ", my partner has the contract direct " that means they do not know anything about the property. . They " teamed up " with someone they do not know and are trying to sell it without knowing anything about it. BEST question everyone should ask these clowns, Who is the owner., that will back them into a corner then you know 100% they are not direct.
Yes, I agree. It's like my favorite question to ask buyers, "Are you prepared to close in 3 days, place a generous EMD down or both?" Great, great question to qualify buyers.
Quote from @Adam Macias:
Quote from @Bob Stevens:"you will piss off the seller, (EXACTLY what I want to do) I am not comfortable putting in that offer. I said Ok I will deal directly with the owner."
Quote from @Adam Macias:
Quote from @Bob Stevens:
Most are clueless; however, I do get about 20 a week sent to me in my market from them. Most no nothing about the property except for the photos they were sent, (photos are meaningless) They say but bob look at the ROI, again they are clueless, they do not even know how to determine the net cap and know nothing about the area,. So they are very useful you just need to know what you are doing.
Also, all due respect I NEVER deal with realtors. I have done about 500 in my market and only used a realtor 10 years ago for a few. I have found that most NOT ALL, realtors do not have a clue either. They show up at a house not knowing anything about it. How many deals do not close as they are off by 20 30 40k ( realtor fees). They all have the same line. " Multiple offers highest and best". I have to tell them what to offer. Just last year when I purchased my primary. Ask was 650 I said offer 450, Oh no , that's to low, you will piss off the seller, (EXACTLY what I want to do) I am not comfortable putting in that offer. I said Ok I will deal directly with the owner. Oh, ok I will do it. Sure, enough got it for 525k including the 15k golf membership, realtor made 15k for DOING ZERO work. All she did was get us in. Not a bad gig.
So everyone needs to know their market, they should know exactly what to pay and where to buy. If they have to ask the realtor if this is a good deal they should not do the deal. Never leave that up to the wholesaler or the realtor,, know what you are doing.
All the best
You can't go around the wholesaler and it's actually a very shady move. That's why contracts exist.
Who said anything about going around a wholesaler ?
I'm talking in direct response to this sentence. Not saying you yourself have bad intent, but if anybody operates this way it's shady business. Contracts must be honored. Sellers can't take that contract and start bidding it to others... UNLESS it's assigned lol Anytime a buyer has tried that with me, I'm glad I warn the seller ahead of time saying buyers will do everything possible to try and convince you to take their offer.
You are misreading.... again. I was referring to the realtor not wanting to put in a low-ball offer. I tell the realtor I will speak with the owner. ( realtors are a waste of time for my reasons above ) You cant go around the wholesaler as they have a contract, nor would I want to. I get 20 deals a week sent to me from them.
Quote from @Bob Stevens:
Quote from @Adam Macias:
Quote from @Bob Stevens:"you will piss off the seller, (EXACTLY what I want to do) I am not comfortable putting in that offer. I said Ok I will deal directly with the owner."
Quote from @Adam Macias:
Quote from @Bob Stevens:
Most are clueless; however, I do get about 20 a week sent to me in my market from them. Most no nothing about the property except for the photos they were sent, (photos are meaningless) They say but bob look at the ROI, again they are clueless, they do not even know how to determine the net cap and know nothing about the area,. So they are very useful you just need to know what you are doing.
Also, all due respect I NEVER deal with realtors. I have done about 500 in my market and only used a realtor 10 years ago for a few. I have found that most NOT ALL, realtors do not have a clue either. They show up at a house not knowing anything about it. How many deals do not close as they are off by 20 30 40k ( realtor fees). They all have the same line. " Multiple offers highest and best". I have to tell them what to offer. Just last year when I purchased my primary. Ask was 650 I said offer 450, Oh no , that's to low, you will piss off the seller, (EXACTLY what I want to do) I am not comfortable putting in that offer. I said Ok I will deal directly with the owner. Oh, ok I will do it. Sure, enough got it for 525k including the 15k golf membership, realtor made 15k for DOING ZERO work. All she did was get us in. Not a bad gig.
So everyone needs to know their market, they should know exactly what to pay and where to buy. If they have to ask the realtor if this is a good deal they should not do the deal. Never leave that up to the wholesaler or the realtor,, know what you are doing.
All the best
You can't go around the wholesaler and it's actually a very shady move. That's why contracts exist.
Who said anything about going around a wholesaler ?
I'm talking in direct response to this sentence. Not saying you yourself have bad intent, but if anybody operates this way it's shady business. Contracts must be honored. Sellers can't take that contract and start bidding it to others... UNLESS it's assigned lol Anytime a buyer has tried that with me, I'm glad I warn the seller ahead of time saying buyers will do everything possible to try and convince you to take their offer.You are misreading.... again. I was referring to the realtor not wanting to put in a low-ball offer. I tell the realtor I will speak with the owner. ( realtors are a waste of time for my reasons above ) You cant go around the wholesaler as they have a contract, nor would I want to. I get 20 deals a week sent to me from them.
Even working with an agent there is a contract involved. If your agent is not doing right by you and representing you on the offer you want to make then it would fall you you and the agent by not asking the right questions upfront. If your agent knows that you are an investor then they should understand that you have to be able to make a profit off the house.
Wholesalers are a key player for the investor. Realtors mostly focus on retail listings vs trying to maximize investor profits. Both have value just two different business models.
- Agent Sales Representative at BiggerPockets
- Fort Collins, CO
- 80
- Votes |
- 150
- Posts
Quote from @Bob Stevens:
Quote from @Adam Macias:
Quote from @Bob Stevens:"you will piss off the seller, (EXACTLY what I want to do) I am not comfortable putting in that offer. I said Ok I will deal directly with the owner."
Quote from @Adam Macias:
Quote from @Bob Stevens:
Most are clueless; however, I do get about 20 a week sent to me in my market from them. Most no nothing about the property except for the photos they were sent, (photos are meaningless) They say but bob look at the ROI, again they are clueless, they do not even know how to determine the net cap and know nothing about the area,. So they are very useful you just need to know what you are doing.
Also, all due respect I NEVER deal with realtors. I have done about 500 in my market and only used a realtor 10 years ago for a few. I have found that most NOT ALL, realtors do not have a clue either. They show up at a house not knowing anything about it. How many deals do not close as they are off by 20 30 40k ( realtor fees). They all have the same line. " Multiple offers highest and best". I have to tell them what to offer. Just last year when I purchased my primary. Ask was 650 I said offer 450, Oh no , that's to low, you will piss off the seller, (EXACTLY what I want to do) I am not comfortable putting in that offer. I said Ok I will deal directly with the owner. Oh, ok I will do it. Sure, enough got it for 525k including the 15k golf membership, realtor made 15k for DOING ZERO work. All she did was get us in. Not a bad gig.
So everyone needs to know their market, they should know exactly what to pay and where to buy. If they have to ask the realtor if this is a good deal they should not do the deal. Never leave that up to the wholesaler or the realtor,, know what you are doing.
All the best
You can't go around the wholesaler and it's actually a very shady move. That's why contracts exist.
Who said anything about going around a wholesaler ?
I'm talking in direct response to this sentence. Not saying you yourself have bad intent, but if anybody operates this way it's shady business. Contracts must be honored. Sellers can't take that contract and start bidding it to others... UNLESS it's assigned lol Anytime a buyer has tried that with me, I'm glad I warn the seller ahead of time saying buyers will do everything possible to try and convince you to take their offer.You are misreading.... again. I was referring to the realtor not wanting to put in a low-ball offer. I tell the realtor I will speak with the owner. ( realtors are a waste of time for my reasons above ) You cant go around the wholesaler as they have a contract, nor would I want to. I get 20 deals a week sent to me from them.
It's not that I misread, you just didn't explain yourself.
- Agent Sales Representative at BiggerPockets
- Fort Collins, CO
- 80
- Votes |
- 150
- Posts
Quote from @Nate Marshall:
Quote from @Lucia Rushton:
@Katlynn Teague if you are a realtor why don’t you work at a proper brokerage ?
Like you my experience is most wholesalers are not skilled, nor provide proper rehab costs, nor ARVs and over the last few years have taken most of the meat off the bone.
For seasoned investors it’s different, they have experience. But for new investors I don’t recommend it because they do not get to do any due diligence and no one is looking after their interest.
I also wish there was more integrity in the wholesale arena. As always just my opinion.
The Taliban and ISIS have more credibility and honor than wholesalers by an large.
Serious? That's an extremely immature statement to make lol I'm glad you're in Evergreen, CO too because I love doing deals there. Maybe I'm the reason you hate wholesalers. Sorry not sorry.
Quote from @Adam Macias:
Quote from @Nate Marshall:
Quote from @Lucia Rushton:
@Katlynn Teague if you are a realtor why don’t you work at a proper brokerage ?
Like you my experience is most wholesalers are not skilled, nor provide proper rehab costs, nor ARVs and over the last few years have taken most of the meat off the bone.
For seasoned investors it’s different, they have experience. But for new investors I don’t recommend it because they do not get to do any due diligence and no one is looking after their interest.
I also wish there was more integrity in the wholesale arena. As always just my opinion.
The Taliban and ISIS have more credibility and honor than wholesalers by an large.
Serious? That's an extremely immature statement to make lol I'm glad you're in Evergreen, CO too because I love doing deals there. Maybe I'm the reason you hate wholesalers. Sorry not sorry.
I don't worry about scum! Never sorry!
- Agent Sales Representative at BiggerPockets
- Fort Collins, CO
- 80
- Votes |
- 150
- Posts
Quote from @Nate Marshall:
Quote from @Adam Macias:
Quote from @Nate Marshall:
Quote from @Lucia Rushton:
@Katlynn Teague if you are a realtor why don’t you work at a proper brokerage ?
Like you my experience is most wholesalers are not skilled, nor provide proper rehab costs, nor ARVs and over the last few years have taken most of the meat off the bone.
For seasoned investors it’s different, they have experience. But for new investors I don’t recommend it because they do not get to do any due diligence and no one is looking after their interest.
I also wish there was more integrity in the wholesale arena. As always just my opinion.
The Taliban and ISIS have more credibility and honor than wholesalers by an large.
Serious? That's an extremely immature statement to make lol I'm glad you're in Evergreen, CO too because I love doing deals there. Maybe I'm the reason you hate wholesalers. Sorry not sorry.
I don't worry about scum! Never sorry!
lol
Quote from @John McKee:
Wholesalers are a key player for the investor. Realtors mostly focus on retail listings vs trying to maximize investor profits. Both have value just two different business models.
Absolutely, thank you John!
Quote from @Lucia Rushton:
@Katlynn Teague if you are a realtor why don’t you work at a proper brokerage ?
Like you my experience is most wholesalers are not skilled, nor provide proper rehab costs, nor ARVs and over the last few years have taken most of the meat off the bone.
For seasoned investors it’s different, they have experience. But for new investors I don’t recommend it because they do not get to do any due diligence and no one is looking after their interest.
I also wish there was more integrity in the wholesale arena. As always just my opinion.
Lucia, thank you for the comment.
I do work at a very proper brokerage that is Nationwide. If you would like to do some research on us our company is Networth Realty and our website is NetworthRealtyUSA.com. Our brokerage was built upon integrity and class, which is why we have an A+ rating with the BBB.
I too have experienced wholesalers that are not skilled in the arena. These people are not active real estate, they pull comps off of zillow and propstream and have no idea how to calculate rehabs.
This is why our brokerage was started, we brand ourselves as a one stop shop. Everyone who works at our brokerage is a licensed agent, we have an extensive training period to learn all things wholesale and the investment side of real estate. We work with new and seasoned investors and a majority of our business is built off of repeat buyers. We are in this business to do good business.
Wholesaling a is a dying business model. AI and tech will crush it. I have over 100 people on my zoom tonight who will watch what it can do.
From the lead to the contact to analysis to the offer and then to a lender or investor in one sitting!
Obsolete!
I believe wholesalers can be a valuable asset. At the same time you must know how to run your numbers, pull comps and know what a good deal is. Sometimes you have to work with and teach them how investors think. Most do not walk the properties and can analyze that there might be a bigger issue that is not accounted for in their pricing.
Biggest thing is to know how to run your numbers.
There is no difference between a wholesaler and an ISIS terrorist or pedophile. Same type of mindset!
Quote from @Katlynn Teague:
Quote from @Lucia Rushton:
@Katlynn Teague if you are a realtor why don’t you work at a proper brokerage ?
Like you my experience is most wholesalers are not skilled, nor provide proper rehab costs, nor ARVs and over the last few years have taken most of the meat off the bone.
For seasoned investors it’s different, they have experience. But for new investors I don’t recommend it because they do not get to do any due diligence and no one is looking after their interest.
I also wish there was more integrity in the wholesale arena. As always just my opinion.
Lucia, thank you for the comment.
I do work at a very proper brokerage that is Nationwide. If you would like to do some research on us our company is Networth Realty and our website is NetworthRealtyUSA.com. Our brokerage was built upon integrity and class, which is why we have an A+ rating with the BBB.
I too have experienced wholesalers that are not skilled in the arena. These people are not active real estate, they pull comps off of zillow and propstream and have no idea how to calculate rehabs.
This is why our brokerage was started, we brand ourselves as a one stop shop. Everyone who works at our brokerage is a licensed agent, we have an extensive training period to learn all things wholesale and the investment side of real estate. We work with new and seasoned investors and a majority of our business is built off of repeat buyers. We are in this business to do good business.
@Katlynn Teague I hear you. I am very familiar with your company. Unfortunately as in the case with any large nationwide or franchise company, no two employees are the same or have the same training and ethics. And sadly, in DFW, we have encountered many unprofessional wholesalers from 'licensed brokerages'. Again thank you for your comments, and I know without a shadow of a doubt that you work tirelessly for your clients and are very success. Wishing you all the best,
Quote from @Lucia Rushton:
Quote from @Katlynn Teague:
Quote from @Lucia Rushton:
@Katlynn Teague if you are a realtor why don’t you work at a proper brokerage ?
Like you my experience is most wholesalers are not skilled, nor provide proper rehab costs, nor ARVs and over the last few years have taken most of the meat off the bone.
For seasoned investors it’s different, they have experience. But for new investors I don’t recommend it because they do not get to do any due diligence and no one is looking after their interest.
I also wish there was more integrity in the wholesale arena. As always just my opinion.
Lucia, thank you for the comment.
I do work at a very proper brokerage that is Nationwide. If you would like to do some research on us our company is Networth Realty and our website is NetworthRealtyUSA.com. Our brokerage was built upon integrity and class, which is why we have an A+ rating with the BBB.
I too have experienced wholesalers that are not skilled in the arena. These people are not active real estate, they pull comps off of zillow and propstream and have no idea how to calculate rehabs.
This is why our brokerage was started, we brand ourselves as a one stop shop. Everyone who works at our brokerage is a licensed agent, we have an extensive training period to learn all things wholesale and the investment side of real estate. We work with new and seasoned investors and a majority of our business is built off of repeat buyers. We are in this business to do good business.
@Katlynn Teague I hear you. I am very familiar with your company. Unfortunately as in the case with any large nationwide or franchise company, no two employees are the same or have the same training and ethics. And sadly, in DFW, we have encountered many unprofessional wholesalers from 'licensed brokerages'. Again thank you for your comments, and I know without a shadow of a doubt that you work tirelessly for your clients and are very success. Wishing you all the best,
Thank you very much Lucia, I wish you all the best as well. I am very sorry to hear you had a less than perfection experience.
Quote from @Bob Stevens:
Quote from @Larry Turowski:
Gotta agree with @Bob Stevens. The bar is really low for becoming a wholesaler. The bar is only slightly higher for becoming a realtor and they can be every bit as bad and shady as wholesalers.
The truly good wholesalers and truly good real estate agents who work really hard—they’re great. That said, like Bob, I haven’t bought a listed property in a long time.
FSBO is the way EVERYONE should go. Both sides will get a better deal. I moved to Fl 3 weeks ago. I am going to rent on the beach till the end of year as I see a correction coming. In the meantime, I am putting in low offers, why not. Ask, 439K, offered 350k. Well IF there was not 25k in realtors' fees we would come to a win win deal in a day. At 430k seller net is about 400k. So if they were only asking 400k, they would accept 375k, I would buy it for that. But since the realtors want their 25k for doing really nothing. I found it, I know the market, I know what it will cost to update etc. the property just sits. Nobody wins,
All the best
Bob, I agree with you. I've been in the fix and flip business for almost a year now. I've worked with 3 different realtors. They sucked at it! So, I decided to give FSBO a shot. Yep, super easy, plus much less paperwork and headaches. If the buyer REALLY wants to purchase the completely renovated property and (me) the seller REALLY wants to sell at the satisfied price, hey, we'll get this contract to closing (they want to make sure you don't show or sell to anyone else, lol). People get attached like you wouldn't believe!! Still a win win. However, I've found a great hard-working realtor and he's fine with representing my purchases and me selling as FSBO (repeat).