First time working with a wholesaler. I asked for one more walk-through. unhappy

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First time working with a wholesaler. I asked for one more walk-through. unhappy

Lilly Fang
Member since 2018 · 89 posts · 26 votes

I just started buying off-market properties for BRRR for myself. I usually JV with my partner do flips, but he handles everything. I only contributed financially and gave some design ideas. That says I don't have much experience.

PinPoint Offers sent me a few deals, and I placed an offer on one without seeing it. They called me, saying my offers were the top ones, and gave me a very short notice to look at the property. Yesterday, at 4:30 p.m., I got the notice, and I had to be there at 6 p.m. I went there by myself and had a budget in mind afterward. I actually increased my original offer by 10k, and PinPoint accepted my offer today. My flipper friend suggested I go there tomorrow with his contractor to ensure I am in good hands. I talked to PInPoint about this. PInPoint was very unhappy and seemed like I made this very difficult. 

My question is: am I acting dramatically? Out of norm? Break some industrial rules?

non-refundable EMD is due in 24 hours, which is tomorrow 6pm. We can go there and have a look anytime before then, and I can send EMD if everything is as I planned. It won't delay any progress. The owner lives in the house, but she is very friendly. I don't think it will be an issue to go there one more time for 10 minutes. PinPoint sounded like if you want to have a look again, we will give the offer to others. Anyway, the PinPoint guy said I will have to talk to my team tomorrow.

I have never bought directly from the wholesaler or PinPoint. Am I breaking any rules here? 

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Chris Barrett
Investor · Madison WI · Member since 2021 · 140 posts · 103 votes
2y

So my approach is --- who cares if they're upset? If they want your money then they can deal with your requests or not have you purchase homes from them. 

Also this emotional pressure is really common with high pressure sales environments, which is often the case with large wholesaling organizations. 

ALWAYS operate in your best interest, even if emotionally uncomfortable. :) 

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  • Ko KashiwagiPro Member
    Lender · Los Angeles, CA · Member since 2022 · 967 posts · 445 votes
    2y

    Hi Lilly,

    They are probably concerned you are backing out of the deal. It would be odd to not have the right to still take a look again, but at the end of the day they have the deal under contract so they can decide who they give the deal to. Personally I'm not a fan of getting pressured into a deal - if you don't feel good about rushing into the deal, it's better to back out.

    310-848-9776
    4Reply
  • Chris Barrett
    Investor · Madison WI · Member since 2021 · 140 posts · 103 votes
    2y

    So my approach is --- who cares if they're upset? If they want your money then they can deal with your requests or not have you purchase homes from them. 

    Also this emotional pressure is really common with high pressure sales environments, which is often the case with large wholesaling organizations. 

    ALWAYS operate in your best interest, even if emotionally uncomfortable. :) 

    11Reply
  • Mary Ainsworth
    Lender · San Diego, CA · Member since 2022 · 235 posts · 94 votes
    2y
    Quote from @Lilly Fang:

    I just started buying off-market properties for BRRR for myself. I usually JV with my partner do flips, but he handles everything. I only contributed financially and gave some design ideas. That says I don't have much experience.

    PinPoint Offers sent me a few deals, and I placed an offer on one without seeing it. They called me, saying my offers were the top ones, and gave me a very short notice to look at the property. Yesterday, at 4:30 p.m., I got the notice, and I had to be there at 6 p.m. I went there by myself and had a budget in mind afterward. I actually increased my original offer by 10k, and PinPoint accepted my offer today. My flipper friend suggested I go there tomorrow with his contractor to ensure I am in good hands. I talked to PInPoint about this. PInPoint was very unhappy and seemed like I made this very difficult. 

    My question is: am I acting dramatically? Out of norm? Break some industrial rules?

    non-refundable EMD is due in 24 hours, which is tomorrow 6pm. We can go there and have a look anytime before then, and I can send EMD if everything is as I planned. It won't delay any progress. The owner lives in the house, but she is very friendly. I don't think it will be an issue to go there one more time for 10 minutes. PinPoint sounded like if you want to have a look again, we will give the offer to others. Anyway, the PinPoint guy said I will have to talk to my team tomorrow.

    I have never bought directly from the wholesaler or PinPoint. Am I breaking any rules here? 


    From my perspective, you are acting responsibly by wanting to have your contractor inspect the property before finalizing the deal. It is a common practice in the industry to ensure the property aligns with your investment criteria and expectations. The short notice and their reaction to your request for a second walkthrough are a bit concerning, as it could indicate they are trying to rush you into a deal.

    You are the one investing your money, and you should feel comfortable with the property before committing the non-refundable EMD. My advice would be to politely but firmly communicate your need to have your contractor inspect the property, and emphasize that this is a standard practice for you.

    If PinPoint is unwilling to accommodate this request, you may want to reconsider the deal! 
    2Reply
  • Michael K GallagherBusiness Member
    Real Estate Agent · Columbus OH · Member since 2018 · 1k+ posts · 1k+ votes
    2y

    In my experience people that act like this generally are doing something shady with regards to how they are framing or selling the deal to the seller themselves and are trying to keep all parties in their separate silos.  They most likely have a "story" they told the owner and you being there again may jeopardize that story and therefore whatever their assignment fee is, or something along those lines.  

    Transparency is always the best approach but generally its been my experience that there are very few wholesalers that act in transparent ways to the sellers and buyers and try to keep everyone as much in the dark as they can.  

    [email protected]614-362-2231
    5Reply
  • Arthur Schwartz
    Investor · Baltimore, MD · Member since 2019 · 164 posts · 47 votes
    2y

    hire a general contractor to loo a the property.  I'll bet it is going to be a good deal

    0Reply
  • Arthur Schwartz
    Investor · Baltimore, MD · Member since 2019 · 164 posts · 47 votes
    2y
    Quote from @Arthur Schwartz:

    hire a general contractor to loo a the property.  I'll bet it is going to be a good deal


     to look at the property

    0Reply
  • Lilly Fang
    OP
    Member since 2018 · 89 posts · 26 votes
    2y

    Thank you, everyone! I will insist on a quick walk-through with my contractor friend, and if that is not allowed, I will walk away. Deals will come again. 

    2Reply
  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    2y
    Quote from @Lilly Fang:

    Thank you, everyone! I will insist on a quick walk-through with my contractor friend, and if that is not allowed, I will walk away. Deals will come again. 


     Does your contract give you the ability to walk through again? Does it give you the ability to walk away?

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    0Reply
  • Lilly Fang
    OP
    Member since 2018 · 89 posts · 26 votes
    2y

    they only sent the assignment contract. There is no walk-through clause in the contract. I have not signed it. There is a non-refundable EMD of $10000 within 24 hours. I am requesting a walk-through with my contractor today and will send the EMD. I have decided that if it's not possible to go with my contractor, I will cancel it. At least I learned something from this experience.

    2Reply
  • Lilly Fang
    OP
    Member since 2018 · 89 posts · 26 votes
    2y

    I don't like their tactic. The PinPoint guy is accusing me of renegotiation. I feel like I am dealing with time-share or car sales.

    2Reply
  • Jon K.
    Rental Property Investor · Perry Hall, MD · Member since 2016 · 587 posts · 599 votes
    2y
    Quote from @Lilly Fang:

    I just started buying off-market properties for BRRR for myself. I usually JV with my partner do flips, but he handles everything. I only contributed financially and gave some design ideas. That says I don't have much experience.

    PinPoint Offers sent me a few deals, and I placed an offer on one without seeing it. They called me, saying my offers were the top ones, and gave me a very short notice to look at the property. Yesterday, at 4:30 p.m., I got the notice, and I had to be there at 6 p.m. I went there by myself and had a budget in mind afterward. I actually increased my original offer by 10k, and PinPoint accepted my offer today. My flipper friend suggested I go there tomorrow with his contractor to ensure I am in good hands. I talked to PInPoint about this. PInPoint was very unhappy and seemed like I made this very difficult. 

    My question is: am I acting dramatically? Out of norm? Break some industrial rules?

    non-refundable EMD is due in 24 hours, which is tomorrow 6pm. We can go there and have a look anytime before then, and I can send EMD if everything is as I planned. It won't delay any progress. The owner lives in the house, but she is very friendly. I don't think it will be an issue to go there one more time for 10 minutes. PinPoint sounded like if you want to have a look again, we will give the offer to others. Anyway, the PinPoint guy said I will have to talk to my team tomorrow.

    I have never bought directly from the wholesaler or PinPoint. Am I breaking any rules here? 

     I know this wasn't your question, but if PinPoint said your offer was the top one or one of the top ones and asked you to come take a look in person why did you then increase your offer by 10k? It is entirely possible you were the best offer and unnecessarily cost yourself some money here.

    5Reply
  • Luka Milicevic
    Real Estate Agent · Nashville, TN · Member since 2015 · 2k+ posts · 2k+ votes
    2y

    You aren't doing anything wrong or out of the norm. 

    Their concern is that your contractor is going to find something that will change your mind after they have already assigned the deal. 

    If the house was occupied, I would definitely be concerned about bothering tenants but if it's vacant that's a non factor.

    I understand both sides, but you should be able to go see it again as part of your due diligence

    2Reply
  • Jay HurstBusiness Member
    Lender · Dallas, TX · Member since 2017 · 1k+ posts · 1k+ votes
    2y
    Quote from @Lilly Fang:

    I just started buying off-market properties for BRRR for myself. I usually JV with my partner do flips, but he handles everything. I only contributed financially and gave some design ideas. That says I don't have much experience.

    PinPoint Offers sent me a few deals, and I placed an offer on one without seeing it. They called me, saying my offers were the top ones, and gave me a very short notice to look at the property. Yesterday, at 4:30 p.m., I got the notice, and I had to be there at 6 p.m. I went there by myself and had a budget in mind afterward. I actually increased my original offer by 10k, and PinPoint accepted my offer today. My flipper friend suggested I go there tomorrow with his contractor to ensure I am in good hands. I talked to PInPoint about this. PInPoint was very unhappy and seemed like I made this very difficult. 

    My question is: am I acting dramatically? Out of norm? Break some industrial rules?

    non-refundable EMD is due in 24 hours, which is tomorrow 6pm. We can go there and have a look anytime before then, and I can send EMD if everything is as I planned. It won't delay any progress. The owner lives in the house, but she is very friendly. I don't think it will be an issue to go there one more time for 10 minutes. PinPoint sounded like if you want to have a look again, we will give the offer to others. Anyway, the PinPoint guy said I will have to talk to my team tomorrow.

    I have never bought directly from the wholesaler or PinPoint. Am I breaking any rules here? 

     certain wholesalers pray on newbies, and rush the entire process so you do not have time to do the required due diligence. 

    Hurst Real Estate, INC4.991 Reviews
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    2Reply
  • Matthew Paul
    Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
    2y

    Its your money , put yourself in the Big chair and dictate to them . 

    2Reply
  • David Vaughn
    Contractor · shelby · Member since 2022 · 60 posts · 42 votes
    2y
    Quote from @Chris Barrett:

    So my approach is --- who cares if they're upset? If they want your money then they can deal with your requests or not have you purchase homes from them. 

    Also this emotional pressure is really common with high pressure sales environments, which is often the case with large wholesaling organizations. 

    ALWAYS operate in your best interest, even if emotionally uncomfortable. :) 


     100%

    0Reply
  • Joe S.Pro Member
    Investor · San Antonio · Member since 2020 · 3k+ posts · 3k+ votes
    2y
    Quote from @Jon K.:
    Quote from @Lilly Fang:

    I just started buying off-market properties for BRRR for myself. I usually JV with my partner do flips, but he handles everything. I only contributed financially and gave some design ideas. That says I don't have much experience.

    PinPoint Offers sent me a few deals, and I placed an offer on one without seeing it. They called me, saying my offers were the top ones, and gave me a very short notice to look at the property. Yesterday, at 4:30 p.m., I got the notice, and I had to be there at 6 p.m. I went there by myself and had a budget in mind afterward. I actually increased my original offer by 10k, and PinPoint accepted my offer today. My flipper friend suggested I go there tomorrow with his contractor to ensure I am in good hands. I talked to PInPoint about this. PInPoint was very unhappy and seemed like I made this very difficult. 

    My question is: am I acting dramatically? Out of norm? Break some industrial rules?

    non-refundable EMD is due in 24 hours, which is tomorrow 6pm. We can go there and have a look anytime before then, and I can send EMD if everything is as I planned. It won't delay any progress. The owner lives in the house, but she is very friendly. I don't think it will be an issue to go there one more time for 10 minutes. PinPoint sounded like if you want to have a look again, we will give the offer to others. Anyway, the PinPoint guy said I will have to talk to my team tomorrow.

    I have never bought directly from the wholesaler or PinPoint. Am I breaking any rules here? 

     I know this wasn't your question, but if PinPoint said your offer was the top one or one of the top ones and asked you to come take a look in person why did you then increase your offer by 10k? It is entirely possible you were the best offer and unnecessarily cost yourself some money here.

      My thoughts exactly.
    0Reply
  • V.G JasonPro Member
    Investor · Member since 2022 · 3k+ posts · 3k+ votes
    2y

    You upped a winning offer, then are bringing in someone to have a second visit'? You made their day, now you're crushing their month. 

    No **** they're a little bitter. 

    First, why did you increase your offer and two why did you agree to see it right then and there without a contractor? Always let your contractors know you've made some offers and may need them on a whim. 

    And last, but not least, if they are going to be pushy with it like most off-market folks such as New Western  & the likes are, just operate at your own pace. They'll deal with it. 

    1Reply
  • Lilly Fang
    OP
    Member since 2018 · 89 posts · 26 votes
    2y

    Because the condition is better than I thought, and someone else was looking at the house as well and seemed very interested in it, too. Now I have learned a lot. 

    UPDATE: My contractor went to look at it, and it's okay to go. However, I found out I had to clean up that messy house (lots of trash, like a hoarder's house). This is probably my bad: PInPoint says delivered vacant, as is. I assume as is means as is, no repair. I randomly asked: it will be cleaned up, right? The guy said: no, we said as is.

    Can I still re-negotiate and get 5k down? We had a verbal agreement, and they sent me the contract, which I have not signed yet because of the walk-through. I am pretty sure they don't have a buyer higher than my price because I saw them just advertise it again at my price minus 5k. Will I be blocked in the future?

    0Reply
  • Steve K.
    Realtor · Boulder, CO · Member since 2016 · 3k+ posts · 5k+ votes
    2y

    Why are you so worried about what the wholesaler thinks? You'll both forget about each other in a few months, but you'll still have the property. One thing that has been consistent in all my years of real estate is that everyone only really cares about their own self-interests. You've got to look out for #1 and that's it. Buying from a wholesaler isn't really "off market" in my opinion, you have to really source the deals directly and not go through a middle man for it to truly be off market in my book. Wholesalers are just like agents who take a fee for connecting buyer and seller. They just might not be licensed, might not be ethical, usually don't answer to a broker or a regulatory body (unless they are licensed) and use a different sales process where the EM typically goes hard earlier in the transaction and the buyer is on their own with fewer contingencies and less time to do their due diligence. The property is still shopped around to the highest bidder so it's still being marketed. Some wholesaler "deals" are actually just pulled off the MLS and marked up. Direct to the seller is the only true "off market" IMO. Frankly it doesn't seem like you're ready to pull the trigger on this deal. 99 out of 100 "deals" from wholesalers are bad IME. I wouldn't recommend working with wholesalers until you've got the experience to identify that 1 in 100 deals that isn't bad, and can rule out the 99 that are bad. You should know the contracts and the closing process, construction costs and all the potential money-pit issues to look out for with properties, so that you feel comfortable with your EM going hard without a proper inspection, etc. You probably need a few dozen "normal" deals with the usual contingencies before jumping in the savage ocean with the sharks IMO. If you were ready, you'd be offering 20% under their asking price since they have no other offers. If that deal hasn't been snapped up already, it's probably one of the 99 bad ones and not the 1 very rare good one, so proceed with caution. Good luck!

    1Reply
  • Lilly Fang
    OP
    Member since 2018 · 89 posts · 26 votes
    2y

    Thank you, everyone!!!! I love this forum.

    1Reply
  • David Vaughn
    Contractor · shelby · Member since 2022 · 60 posts · 42 votes
    2y
    Quote from @Lilly Fang:

    Because the condition is better than I thought, and someone else was looking at the house as well and seemed very interested in it, too. Now I have learned a lot. 

    UPDATE: My contractor went to look at it, and it's okay to go. However, I found out I had to clean up that messy house (lots of trash, like a hoarder's house). This is probably my bad: PInPoint says delivered vacant, as is. I assume as is means as is, no repair. I randomly asked: it will be cleaned up, right? The guy said: no, we said as is.

    Can I still re-negotiate and get 5k down? We had a verbal agreement, and they sent me the contract, which I have not signed yet because of the walk-through. I am pretty sure they don't have a buyer higher than my price because I saw them just advertise it again at my price minus 5k. Will I be blocked in the future?


     I'm my experience there is supposedly "always" somebody else looking. Whether as to this is a real person or not well..... That being said never base your offer on the other guy. What he is thinking. The backstory or all this other nonsense that people talk about. It's a numbers business. Point blank. They work or they don't. If this wholesaler really had this great offer that you upset he would not have been so pushy and may not have even agreed for you to see it. Also he wouldn't have told the winning offer about you until he had your earnest money, assignment fee or whatever we are calling money where mouth is these days. His words vs actions don't line up and I'd say he is full of crap

    2Reply
  • Dan Thomas
    Rental Property Investor · Bow, NH · Member since 2016 · 216 posts · 185 votes
    2y

    @Lilly Fang

    Don't worry about re negotiating if another buyer is in the mix. Clearly this wholesaler doesn't think it's a done deal, if they did they wouldn't have another buyer there.

    I would take the opportunity to account for the cleaning and re adjust your offer to what you are willing to pay for it. Higher, lower, the same (based on what you have explained i would expect lower). It really doesn't matter in the least what the wholesaler thinks. It matters what's a good deal for you.

    0Reply
  • Dan Thomas
    Rental Property Investor · Bow, NH · Member since 2016 · 216 posts · 185 votes
    2y

    @David Vaughn

    In general I agree with what you have said however I have had this happen......house sitting for 6 mo, make an offer at asking, be told there is a new interested party, not adjust my offer because I think they are blowing smoke, loose the deal because there was another offer.

    I think it is common place for agents or wholesalers to re engage tire kickers when they get an offer.

    At the end of the day I tend to offer what I am willing to pay no more no less. So when I loose a deal I don't loose any sleep over it because I feel content I would have over paid if I got it.

    0Reply
  • Lilly Fang
    OP
    Member since 2018 · 89 posts · 26 votes
    2y

    Thank you everyone, I got 5k down.

    Another question is that we constructed this as a cash offer. I thought a cash offer meant no conventional bank, appraisal, etc. involved. However, I would like to use private lenders' money, which is from my two friends. My friends agreed already, and we just need a note. We will close on time. If not, I will use my actual cash. Will use my friend's money violate the "cash offer" rule? And one friend wants to wire her money directly to my account without any note. Is that ok?

    Gosh, so much to learn. 

    0Reply
  • David Vaughn
    Contractor · shelby · Member since 2022 · 60 posts · 42 votes
    2y
    Quote from @Dan Thomas:

    @David Vaughn

    In general I agree with what you have said however I have had this happen......house sitting for 6 mo, make an offer at asking, be told there is a new interested party, not adjust my offer because I think they are blowing smoke, loose the deal because there was another offer.

    I think it is common place for agents or wholesalers to re engage tire kickers when they get an offer.

    At the end of the day I tend to offer what I am willing to pay no more no less. So when I loose a deal I don't loose any sleep over it because I feel content I would have over paid if I got it.


     100% and I've lost deals on the same premise. Wholesellers and realtors have to know you will walk though so they take you serious. Nothing is worse than overpaying for a house other than maybe an over inflated arv that can't be real

    0Reply
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