OK So I'm sitting around looking to see if there are any deals floating around. I go on Craigslist and look at today's ads. I see two. One is a wholesaler. Then, my BP alert goes off and another listing pops up in the Marketplace. This is a member posting a property that is being advertised by another wholesaler and the property has no less than 3 Zillow listings.
What do you all do when a property is listed by another wholesaler?
Do you pass on it? Give them a call? Float it by your buyers?
Likely garbage but you never know. Get as direct to the source as possible, review the deal, make a new contact and see where it goes. You'd have the answer already if you'd just called them!
I always try and get to the original wholesaler if possible. The most recent property we bought was through a second wholesaler who had a bigger network of investors than the one that actually procured the property. After getting the info from closing we tracked down the wholesaler the property originated from to deal with him directly. The second wholesaler involved cost us about 5K but the property was still a great deal because the ARV was undervalued about 20K.
If the numbers work out I wouldn't hesitate to execute a deal, even with multiple wholesalers involved. When you see the HUD you should be able to identify the actual seller and contact him directly for future deals and possibly gain a great new conduit of properties. We did this and negotiated all future properties down a few thousand because he was selling to us directly.
I hope that helps.
Thanks for responding. I listened to the podcast with you just this week. Great podcast by the way!
I did call them and the minute they said they were a wholesaler and I said the same the conversation died. All I could really say is that I would shop it around to my buyers. Then I thought, my buyers aren't that stupid, they have to be looking in the same places.
I am doing my own marketing (DM and all) but thought I would look at some other places while waiting for the marketing to pay off.
I guess the real question in all of this is "How do you co-wholesale?" I know on the podcast you said you've done this. And, I know that a person would think that half o something is better than nothing. But it seems to me the attitude I got was "This is my deal. Get lost."
I actually came across a listing that said 'Wholesalers and bird doggers need not call.'
"once you add value, you get paid" determining how exactly to do that at times can be a challenge.
It could be having better buyers, better negotiating skills etc..
Many new wholesalers push a deal to the first buyer they know, in many cases that buyer isn't the highest paying. So, if you know better buyers you add value by just helping sell at a much higher price.
I've never cost someone money by involving me in a deal, that is an important thing to note. I add value, so I get paid.
Thanks for the encouragement. I think it may be time to take that thicker skin and try it on again. It's been a while since I've had to use it.
I remember how you said on the podcast that you don't need to have a giant list of buyers, just the highest paying buyers. And also, to know how your market is pricing so you know your numbers inside and out.
Do you think that taking other wholesaler's deals from Craigslist (or wherever) and posting them, say on BP Marketplace, is a way of adding value because you are networking them to a larger audience. I ask because I have seen this done.
This following is from the person who put in his add "No wholesalers or bird doggers":
'I dont do co-wholeslae deals and most inquiries are from wholesalers that try to tie up property and assign to another buyer
the disclaimer works i get a ton less inquiries from people that don’t have a clue as to what there doing'
Thoughts on this and posting in the Marketplace?
its a two way street.
No I don't think just blasting a deal will often net you much. BUT its minimal effort and could. I don't see the best buyers on BP, this is a very conservative group.
I rarely have anyone help me sell a deal, I don't need them. They are essentially asking me to pay them to do something I already know how to do. That is why this person likely doesn't work with them. BUT if he had a deal he couldn't move, you better believe he'll be asking anyone to help find a buyer. WHY? because now they have a chance to add value.
I've never used BP marketplace so I don't know, but most of my deals I've discussed here have been crapped on by folks who think they suck.
You make me laugh. I like that! "most of my deals I've discussed here have been crapped on by folks who think they suck."
I wish I could stay here and pick your brain for awhile. From the podcast you sound like a really down to earth person. Your backstory was interesting. Especially when you talked about finally focusing and your friend's challenge.
I appreciate the time you've given me and hopefully I can talk to you more later.
This is very common...pseudo investors are often part of daisy chains. They usually have no deal flow so they cull the internet, pick up properties being advertised by other wholesalers, then add $5K to the original wholesaler's price and start advertising the property as their own.
Always ask this question of anyone advertising a property. Do you OWN or do you personally CONTROL the property. If they can't or refuse to answer, they have nothing to offer and will generally be a waste of your time.
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