What is your opinion on wholesalers?

Rehabbing & House Flipping

What is your opinion on wholesalers?

Real Estate Agent · Atlanta, GA · Member since 2022 · 352 posts · 219 votes

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?

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Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes

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

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Andy SabischPro Member
Investor · Jackson, MS · Member since 2021 · 660 posts · 561 votes
3y
As others have said, there are a FEW wholesalers that can bring you realistic deals but 99% will bring you deals that have overstated ARVs, underestimated rehabs and unrealistic reno periods. I know if several investors that got burned going that route. The vast majority of wholesalers do not know the business and after investing in one of the online courses that promise instant riches, you can imagine what type of deals you start to see being offered. I have found that if you even so much as do a search on wholesalers, your Facebook and Google feeds will be jammed with wholesale programs that promise money with no effort. I have reached out to some of the bandit sign posters to see what they know and what they can bring me and have yet to find one that was not asking me for tips before the call ended. There are some wholesalers that can bring you off market deals that work but if you do not know the market and what reno costs are, there are some better deals on Florida property east of Miami. Do you research and see if you have wholesalers in your area that can find the deals and re not greedy. Check with your local REIG and see if they have wholesaler members you can meet with.

I just think that with the plethora of people selling the magic elixir of wholesaling on the Internet that there are way more bad ones than good ones anywhere. Do your homework to find a good one or more than one but as I said, do one search and see how many "get rich quick" offers start popping up . . . get started with no money and no knowledge . . that says it all.
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Eric James
Investor · Malakoff, TX · Member since 2017 · 2k+ posts · 2k+ votes
3y
I've never seen a wholesaler deal in my area that was worth buying. Have even had them sent to me that were currently listed in the MLS.
2 Reply
Dwayne Byrd
Real Estate Broker · Palm Bay, FL · Member since 2017 · 175 posts · 89 votes
3y
It's never good to generalize, but haven't ever done a deal with a wholesaler. Have only found a few that had a clue. It's tough. I feel like too many watch youtube or go to a seminar and try to learn "how to get rich quick with other people's money, etc." I think many don't have the resources to actually purchase the property if they don't find a buyer - and that bothers me. I also feel that many take advantage of uneducated people. Currently, there is nearly zero people who couldn't make more money just selling their homes through traditional means on the mls market etc. Nearly everyone is at a breakeven point if even bought last year. Most people have a massive amount of equity and leave it on the table for the wholesaler to consume. There is a market for everything and everyone. I guess I just get tired of lowball offers in my inbox on every listing in my brokerage saying that we could get it done in 30 days, cash, for literally half the value of the home... If that was the case, I would personally buy every listing in my brokerage lol.
Again I have learned that it isn't good to put everyone in the same category. If they can close a deal that they don't resell in the time period, I'm more ok with it. It's just when they drag a potential seller on and have zero means of closing where it hurts the potential seller who is only getting a fraction of their equity anyway. Just my 2 cents
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Crystal SmithPro Member
Moderator
Real Estate Broker · Chicago, IL · Member since 2014 · 2k+ posts · 1k+ votes
3y
Quote from @Katlynn Teague:

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?

My thoughts on wholesalers- We have no problems with wholesalers. For us, they are the equivalent of property finders or bird dogs. The more the better. We do our due diligence on deals we receive from wholesalers; run our own analysis on the ARV; rental rate and/or what's required for a renovation. The only time we write a wholesaler off is if they do not properly control a property; i.e. have it under contract or an LOI.
312-681-7487
2 Reply
Lindsey Hughey
Texarkana, TX · Member since 2017 · 58 posts · 34 votes
3y
Quote from @Crystal Smith:

Quote from @Katlynn Teague:

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?

My thoughts on wholesalers- We have no problems with wholesalers. For us, they are the equivalent of property finders or bird dogs. The more the better. We do our due diligence on deals we receive from wholesalers; run our own analysis on the ARV; rental rate and/or what's required for a renovation. The only time we write a wholesaler off is if they do not properly control a property; i.e. have it under con

You need wholesalers like you need trash men, plumbers, and title companies. It doesn’t matter that they are making X amount on the deal they are apart of your funnel system. If you take them out of the equation your funnel for new properties will shrink. All of this is market dependent and how good your relationships are in your community.
1 Reply
Bob S.
Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
3y
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.
0 Reply
Trevor Richardson
Real Estate Broker · Reno, NV · Member since 2023 · 267 posts · 297 votes
3y
Here is the difference. A good real estate agent will bring value to a property owner and get their property sold for the highest price.
A good wholesaler will get the lowest price and extract the most value away from the property owner for themselves and the investor.
If a property never hits the open market there is no way its true value will ever be determined. Wholesaling is like any other off market ploy like (Opendoor).
It’s a free market so go for it but unless a property owner has to sell this very minute, wholesaling does not have the best interest of the owner in mind.

0 Reply
Blake Novotney
Real Estate Agent · Wilmington, NC · Member since 2021 · 166 posts · 116 votes
3y
I think social media glorified being a wholesaler the past couple years..
BUT I have met some fantastic ones. Just like anything else there are great ones and terrible ones. Same for agents! The great ones will stand the test of time and be invaluable to many people's path to financial freedom.
0 Reply
Nate Marshall
Real Estate Consultant · Evergreen, CO · Member since 2018 · 1k+ posts · 738 votes
3y
You don't need them or their inflated egos and assignment fees. You can work circles around them now using AI and the 3 P's. Privy. Propstrea and Propwire.
0 Reply
Gary Randle
Real Estate Consultant · Member since 2022 · 212 posts · 28 votes
3y
Being in the real estate business. People are people. Not ALL wholesalers are bad, not all Investors are bad, not all home owners are bad. Everyone has a choice, who they choose to deal with business or not. I can only speak for me. Everything I do is HONEST to my core.....For me there is no need to lie about anything to be frank.....I have worked with great honest people in this business even thou I am fairly new you have to know your stuff and know how to read peoples actions, actions will show you everything you need to know about a person. I am a TRUE people person, I actually care about EVERYONE being able to work together and win. Not saying any of this to get attention, in any regard. I am very picky on who I work with, I know my numbers, I actually LOVE this business. When you love people and you love what you do, GREAT things follow all the time!!!!
1 Reply
Conrad Cortes
Real Estate Agent · Houston, TX · Member since 2020 · 56 posts · 34 votes
3y
@Bob Stevens I had the exact same experience before and chose to get my license so I can be that low balling agent haha. But I also tend to have a low opinion of agents as well even being one myself! Most are just sales people who don’t fully “understand” real estate.. they just know how to push the deal a long and make people feel comfy and safe while doing it. Which does serve a value I guess to the right people.
0 Reply
Conrad Cortes
Real Estate Agent · Houston, TX · Member since 2020 · 56 posts · 34 votes
3y
@Katlynn Teague I’m an agent too and I sometimes think it’s funny how much hate agents give to wholesalers, not realizing they are in the same boat to the general public.
The licensing process is not intensive and there is just as many bad agents as there are whole-sellers. I think as an investor you should keep your doors open to both if they present a decent offer. But just like how we’re going to filter through a ton of crap on our own, we’re going to have to filter out the same amount that comes from whole sellers and agents as well.
1 Reply
Bob S.
Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
3y
Quote from @Conrad Cortes:

@Bob Stevens I had the exact same experience before and chose to get my license so I can be that low balling agent haha. But I also tend to have a low opinion of agents as well even being one myself! Most are just sales people who don’t fully “understand” real estate.. they just know how to push the deal a long and make people feel comfy and safe while doing it. Which does serve a value I guess to the right people.

90% DO NOT to bring value to the deal, Agents I am referring to
1 Reply
Katlynn Teague
OP
Real Estate Agent · Atlanta, GA · Member since 2022 · 352 posts · 219 votes
3y
Quote from @Conrad Cortes:

@Katlynn Teague I’m an agent too and I sometimes think it’s funny how much hate agents give to wholesalers, not realizing they are in the same boat to the general public.
The licensing process is not intensive and there is just as many bad agents as there are whole-sellers. I think as an investor you should keep your doors open to both if they present a decent offer. But just like how we’re going to filter through a ton of crap on our own, we’re going to have to filter out the same amount that comes from whole sellers and agents as well.

I am a licensed agent who wholesales real estate, so I completely understand. I went through a very intensive training to be well equipped in what I do!
With that being said, when talking to other agents it is tuff. Most hear the word wholesale and hang up on the spot.
1 Reply
Katlynn Teague
OP
Real Estate Agent · Atlanta, GA · Member since 2022 · 352 posts · 219 votes
3y
Quote from @Andy Sabisch:
As others have said, there are a FEW wholesalers that can bring you realistic deals but 99% will bring you deals that have overstated ARVs, underestimated rehabs and unrealistic reno periods. I know if several investors that got burned going that route. The vast majority of wholesalers do not know the business and after investing in one of the online courses that promise instant riches, you can imagine what type of deals you start to see being offered. I have found that if you even so much as do a search on wholesalers, your Facebook and Google feeds will be jammed with wholesale programs that promise money with no effort. I have reached out to some of the bandit sign posters to see what they know and what they can bring me and have yet to find one that was not asking me for tips before the call ended. There are some wholesalers that can bring you off market deals that work but if you do not know the market and what reno costs are, there are some better deals on Florida property east of Miami. Do you research and see if you have wholesalers in your area that can find the deals and re not greedy. Check with your local REIG and see if they have wholesaler members you can meet with.

I just think that with the plethora of people selling the magic elixir of wholesaling on the Internet that there are way more bad ones than good ones anywhere. Do your homework to find a good one or more than one but as I said, do one search and see how many "get rich quick" offers start popping up . . . get started with no money and no knowledge . . that says it all.

Andy, I could not agree more. It's a new fad of "getting rich quick" but, as anyone who has worked hard knows anything thing in life that is worth getting will not be easy or fast.
I have been working the wholesale side of real estate for eight months now and it is not easy at all. It takes time to learn your market, learn the costs of items needed in rehabs, learning how to have an eye for certain problems and getting well versed in this side of this industry.
0 Reply
Katlynn Teague
OP
Real Estate Agent · Atlanta, GA · Member since 2022 · 352 posts · 219 votes
3y
Quote from @Dwayne Byrd:

It's never good to generalize, but haven't ever done a deal with a wholesaler. Have only found a few that had a clue. It's tough. I feel like too many watch youtube or go to a seminar and try to learn "how to get rich quick with other people's money, etc." I think many don't have the resources to actually purchase the property if they don't find a buyer - and that bothers me. I also feel that many take advantage of uneducated people. Currently, there is nearly zero people who couldn't make more money just selling their homes through traditional means on the mls market etc. Nearly everyone is at a breakeven point if even bought last year. Most people have a massive amount of equity and leave it on the table for the wholesaler to consume. There is a market for everything and everyone. I guess I just get tired of lowball offers in my inbox on every listing in my brokerage saying that we could get it done in 30 days, cash, for literally half the value of the home... If that was the case, I would personally buy every listing in my brokerage lol.
Again I have learned that it isn't good to put everyone in the same category. If they can close a deal that they don't resell in the time period, I'm more ok with it. It's just when they drag a potential seller on and have zero means of closing where it hurts the potential seller who is only getting a fraction of their equity anyway. Just my 2 cents

Dwayne, I understand where you are coming from.
I appreciate the fact that you do not generalize everyone in the same boat. There are wholesalers out there that are in the business for the right reasons.. helping homeowners who need the help and at the same time are able to offer great deals that our investors can make a pretty penny. A-lot of my business is repeat buyers!
0 Reply
Katlynn Teague
OP
Real Estate Agent · Atlanta, GA · Member since 2022 · 352 posts · 219 votes
3y
Quote from @Crystal Smith:

Quote from @Katlynn Teague:

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?

My thoughts on wholesalers- We have no problems with wholesalers. For us, they are the equivalent of property finders or bird dogs. The more the better. We do our due diligence on deals we receive from wholesalers; run our own analysis on the ARV; rental rate and/or what's required for a renovation. The only time we write a wholesaler off is if they do not properly control a property; i.e. have it under contract or an LOI.

HAHA I totally get that!
0 Reply
Katlynn Teague
OP
Real Estate Agent · Atlanta, GA · Member since 2022 · 352 posts · 219 votes
3y
Quote from @Lindsey Hughey:

Quote from @Crystal Smith:

Quote from @Katlynn Teague:

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?

My thoughts on wholesalers- We have no problems with wholesalers. For us, they are the equivalent of property finders or bird dogs. The more the better. We do our due diligence on deals we receive from wholesalers; run our own analysis on the ARV; rental rate and/or what's required for a renovation. The only time we write a wholesaler off is if they do not properly control a property; i.e. have it under con

You need wholesalers like you need trash men, plumbers, and title companies. It doesn’t matter that they are making X amount on the deal they are apart of your funnel system. If you take them out of the equation your funnel for new properties will shrink. All of this is market dependent and how good your relationships are in your community.

Absolutely could not agree more, relationships that bring value to the table!
Thank you so much for your feedback Lindsey!
0 Reply
Katlynn Teague
OP
Real Estate Agent · Atlanta, GA · Member since 2022 · 352 posts · 219 votes
3y
Quote from @Trevor Richardson:

Here is the difference. A good real estate agent will bring value to a property owner and get their property sold for the highest price.
A good wholesaler will get the lowest price and extract the most value away from the property owner for themselves and the investor.
If a property never hits the open market there is no way its true value will ever be determined. Wholesaling is like any other off market ploy like (Opendoor).
It’s a free market so go for it but unless a property owner has to sell this very minute, wholesaling does not have the best interest of the owner in mind.

Trevor, thank you for the feedback.
However I disagree with your statement, "wholesaling does not have the best interest of the owner in mind". I am speaking for myself here, when working with a homeowner we are working hand and hand to make sure our offer is what is able to get them out of the situation that they are in. This goes for widows who just lost their husband, a house fire, a tree fell through the roof and other extreme situations. Wholesaling is what helps these people get out of these situations the fastest and saves them the hassle of having to find an agent, list on the market and pay commissions. A property does not have to hit the open market to have its value determined, thats what appraisals are for. You can also run a CMA on the property to determine value. A good wholesaler is not going to go after a retail property to contract and try to move to their investor, there is no profit margin in that. A good wholesaler is going to find a deal that needs obvious repairs and move it to an investor that is able to repair the property and is able to make a profit.
0 Reply
Katlynn Teague
OP
Real Estate Agent · Atlanta, GA · Member since 2022 · 352 posts · 219 votes
3y
Quote from @Gary Randle:

Being in the real estate business. People are people. Not ALL wholesalers are bad, not all Investors are bad, not all home owners are bad. Everyone has a choice, who they choose to deal with business or not. I can only speak for me. Everything I do is HONEST to my core.....For me there is no need to lie about anything to be frank.....I have worked with great honest people in this business even thou I am fairly new you have to know your stuff and know how to read peoples actions, actions will show you everything you need to know about a person. I am a TRUE people person, I actually care about EVERYONE being able to work together and win. Not saying any of this to get attention, in any regard. I am very picky on who I work with, I know my numbers, I actually LOVE this business. When you love people and you love what you do, GREAT things follow all the time!!!!

Gary, you and I are in the same boat. I love to hear that someone else is here to actually help and do it THE RIGHT WAY! I wish you the best of luck!
0 Reply
Katlynn Teague
OP
Real Estate Agent · Atlanta, GA · Member since 2022 · 352 posts · 219 votes
3y
Quote from @Blake Novotney:

I think social media glorified being a wholesaler the past couple years..
BUT I have met some fantastic ones. Just like anything else there are great ones and terrible ones. Same for agents! The great ones will stand the test of time and be invaluable to many people's path to financial freedom.

Blake, I agree with everything you said. Can't let one bad apple ruin the whole bunch!
0 Reply
Katlynn Teague
OP
Real Estate Agent · Atlanta, GA · Member since 2022 · 352 posts · 219 votes
3y
Quote from @Nate Marshall:

You don't need them or their inflated egos and assignment fees. You can work circles around them now using AI and the 3 P's. Privy. Propstrea and Propwire.

Nate, I have used every website you mentioned and if Propstream, Propwire and Privy suits you best then more power to you. I have found that those websites pull "comps" nowhere near the subject property over major highways and in completely different areas.
0 Reply
Lucia Rushton
Realtor · Dallas - Fort Worth Metroplex, TX · Member since 2016 · 1k+ posts · 925 votes
3y
@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.
1 Reply
Trevor Richardson
Real Estate Broker · Reno, NV · Member since 2023 · 267 posts · 297 votes
3y
Quote from @Katlynn Teague:

Quote from @Trevor Richardson:

Here is the difference. A good real estate agent will bring value to a property owner and get their property sold for the highest price.
A good wholesaler will get the lowest price and extract the most value away from the property owner for themselves and the investor.
If a property never hits the open market there is no way its true value will ever be determined. Wholesaling is like any other off market ploy like (Opendoor).
It’s a free market so go for it but unless a property owner has to sell this very minute, wholesaling does not have the best interest of the owner in mind.

Trevor, thank you for the feedback.
However I disagree with your statement, "wholesaling does not have the best interest of the owner in mind". I am speaking for myself here, when working with a homeowner we are working hand and hand to make sure our offer is what is able to get them out of the situation that they are in. This goes for widows who just lost their husband, a house fire, a tree fell through the roof and other extreme situations. Wholesaling is what helps these people get out of these situations the fastest and saves them the hassle of having to find an agent, list on the market and pay commissions. A property does not have to hit the open market to have its value determined, thats what appraisals are for. You can also run a CMA on the property to determine value. A good wholesaler is not going to go after a retail property to contract and try to move to their investor, there is no profit margin in that. A good wholesaler is going to find a deal that needs obvious repairs and move it to an investor that is able to repair the property and is able to make a profit.
I could debate this for hours. I think there is a place for it, with desperate sellers and completely distressed properties.

I’ll just agree to disagree except for this point. Market value is not determined by appraisers. Appraisers are a risk backstop for the banking system. Value is always determined by the open market, what buyers are willing to pay. That’s the difference between on market and off market transactions. Good agents know how and where to list a property in that space to get the highest value. If that’s a pitch of wholesalers, you will drive owners right to agents.
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Nate Marshall
Real Estate Consultant · Evergreen, CO · Member since 2018 · 1k+ posts · 738 votes
3y
Quote from @Katlynn Teague:

Quote from @Nate Marshall:

You don't need them or their inflated egos and assignment fees. You can work circles around them now using AI and the 3 P's. Privy. Propstrea and Propwire.
Privy actually connects to the MLS in many markets.You get real time data. Propwire is as strong as they come. Use AI and True People and you will run circles around your competition.
I am batting about .750 on people I have worked with being able to scale their real estate and tangble asset investing. One went from 0 to $75 million during the pandemic. another one was fresh from college and now is literally paying people to build their rental portfolio. 8 are lending. They use my resource library and been there done that subject matter experts.

Nate, I have used every website you mentioned and if Propstream, Propwire and Privy suits you best then more power to you. I have found that those websites pull "comps" nowhere near the subject property over major highways and in completely different areas.

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