Wholesale or no sale;

Is their goal retail not wholesale?

By

Martin Caldwell

Have you ever bought a property through a wholesaler?

Have you ever had someone text you out of the blue wanting to buy your property?

Finally,

Have you ever agreed to be added to a wholesalers buyer list after you told them that you are looking for properties to purchase yourself.

And the crowd goes wild!

Yes, many of us have had one or all of these experiences.

The real question is…

Is it a deal or no deal?

I don’t know about you but lately the “deals” I have received from “wholesalers” don’t quite qualify as anything close to a deal.

Yes, I do understand the inflated market conditions and also somewhat higher rents that we are seeing at this time. However, these deals from wholesalers don't leave much meat on the bone for flippers or buy and hold investors. Furthermore, where are these guys learning to calculate ARV? I don't know about you but lately I look at an offering from an eager fellow telling me that the ARV is $250k, but recent (last 30 days) sales of comps is more in the $225k tops range. What's worse, they want $200k fore the property. Where's the meat?!

.

Picture yourself staring blankly at your smartphone or laptop screen.

That is how I must look when I am looking at these lately. Then, a couple weeks go buy as crickets chirp in the background and suddenly, I get an email alerting me of a price drop, hmmm?

Yes, Yes, I know, many of these are newbies and they are learning the ropes and…. Bla bla bla, but com on guys and gals, if you’re going to call yourself a wholesaler, make sure you have a real deal with some profit left for the investor.

I am not talking to all wholesalers,

so back away from the keyboard and take a

breath. I am just reminding you that We the

investors will not buy from you if the margins are too tight, even in this challenging market. I suspect that some properties are falling out of contract because of poor calculations or greadiness on the part of the wholesaler.

What say you guys? Have you had deals like this lately?

Let me know with a reply.