Should you work with wholesalers—or avoid them altogether?
Korey RalstonPro Member
Investor · St. Petersburg, FL · Member since 2026 · 83 posts · 49 votesShould you work with wholesalers—or avoid them altogether?
Most Popular Reply
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votesQuote from @Matthew Morrow:
Morning Korey,
There’s definitely good and bad in the wholesale space. As an investor and team lead, I’ve personally bought deals from wholesalers, sold wholesale deals ourselves, and worked with investors across multiple states. The key is understanding that not all wholesalers are operators. Some truly understand numbers, construction, exit strategy, and investor needs… others just blast anything with an address attached to it.
The best wholesalers I’ve worked with are the ones who are transparent, know their market, provide real numbers, and don’t try to force deals that don’t make sense. We’ve absolutely closed great off-market deals through wholesalers, but we underwrite every single one ourselves and never rely solely on their numbers. Starting out, wholesalers can absolutely help you get in the game faster and build deal flow without a giant marketing budget. Just don’t shut your brain off because someone says it’s a “deal.”
Biggest advice: build relationships with a few solid operators instead of chasing every email blast. Good wholesalers usually have repeat buyers for a reason. Happy to connect as well if you want to bounce around deal analysis or investment strategy ideas.
Other than many wholesale deals have hair on them so one has to be careful there.. But the ones who only accept CASH sales the buyer is taking on Title risks.. the reason is the title insurance company will only give you title insurance for the underlying contract so what does that mean in practice.
Purchase price from the owner is 100k your price is 120k wholesaler is making 20k you only get title insurance on 100k so now this hairy deal ends up with buggered title that got missed and the title insurer only pays you 100k you just lost 20k plus any money you put into rehab.
And of course the wholesaler demands you use their title company. What do you do ? You tell the title company you will pay for extra title insurance so you protect at least your 20k for maybe 100.00 extra premium.. Many will balk and say it cant be done but that is not correct I have funded 100s of these in my JV partner deals for my clients and I insist on the extra coverage or we wont close with that company and we find one that will insure us.. Now one wholesaler just pitched a fit in Ohio and I went back and forth with his title company and they simply wont do it so we moved to one that will but we don't source from that wholesaler anymore and they are missing out on my client buying 7 to 10 properties a year from them.
But it only takes on title claim were you lose big dollars and you are like shoot how did that happen well that's how and very few know this and many title companies closing attorneys don't know this unless asked like I do.. SO CASH buyers beware wholesaler deals are prone to title claims over time.. Now for many who just do a deal a year or so many times this will never raise its ugly head and you wont know the difference.. But for a company like mine that is funding buying 10 plus deals a month for my JV clients we average a title claim a year.
For a smaller or starting investor who may get stuck in a title claim like this and lose thousands of dollars it could be a disaster for them depending on their financial strength not to mention the stress and usually they go lawyer up only to find out they still are not going to get paid more than the underlying contract price.
61 Replies
- 5moMichael LiggettBusiness MemberReal Estate Agent · Columbus, OH · Member since 2025 · 28 posts · 33 votes
Hey Korey - I actively work with wholesalers in my market (central Ohio); they are a key source for properties and an important part of the r/e market. If you are not including wholesalers, you are losing out on a lot of potential deals.
When it comes to filtering out the good from the bad...at least in my market, if someone is shady, the news travels fast. At the end of the day, its on you - the investor - to make the judgement call as well as do you due diligence. Ask if the property is being daisy-chained, ask to see the OG purchase contract, etc.
And finally - every price is negiotable. There are definitely deals put out (by agents and by wholesalers) that are way over. Offer the price that you think is fair...the worst they can do is say no.
- Investor · St. Petersburg, FL · Member since 2026 · 83 posts · 49 votes5mo
Quote from @Michael Liggett:
Hey Korey - I actively work with wholesalers in my market (central Ohio); they are a key source for properties and an important part of the r/e market. If you are not including wholesalers, you are losing out on a lot of potential deals.
When it comes to filtering out the good from the bad...at least in my market, if someone is shady, the news travels fast. At the end of the day, its on you - the investor - to make the judgement call as well as do you due diligence. Ask if the property is being daisy-chained, ask to see the OG purchase contract, etc.
And finally - every price is negiotable. There are definitely deals put out (by agents and by wholesalers) that are way over. Offer the price that you think is fair...the worst they can do is say no.
Hey, I appreciate you breaking this down—super helpful perspective, especially on wholesalers being such a big part of deal flow.
Quick question for you—what does “daisy chaining” mean in this context? I’ve heard the term before but want to make sure I fully understand how it shows up in deals.
Also, when you ask to see the original (OG) purchase contract, what exactly should I be looking for to make sure everything is legit and there aren’t any red flags?
And on pricing—are there any clear signs you look for that a wholesaler has a deal priced too high? I’m trying to get better at spotting that upfront beyond just running my own numbers.
Appreciate any insight you can share.
- 5moMichael LiggettBusiness MemberReal Estate Agent · Columbus, OH · Member since 2025 · 28 posts · 33 votes
Quote from @Korey Ralston:
Quote from @Michael Liggett:
Hey Korey - I actively work with wholesalers in my market (central Ohio); they are a key source for properties and an important part of the r/e market. If you are not including wholesalers, you are losing out on a lot of potential deals.
When it comes to filtering out the good from the bad...at least in my market, if someone is shady, the news travels fast. At the end of the day, its on you - the investor - to make the judgement call as well as do you due diligence. Ask if the property is being daisy-chained, ask to see the OG purchase contract, etc.
And finally - every price is negiotable. There are definitely deals put out (by agents and by wholesalers) that are way over. Offer the price that you think is fair...the worst they can do is say no.
Hey, I appreciate you breaking this down—super helpful perspective, especially on wholesalers being such a big part of deal flow.
Quick question for you—what does “daisy chaining” mean in this context? I’ve heard the term before but want to make sure I fully understand how it shows up in deals.
Also, when you ask to see the original (OG) purchase contract, what exactly should I be looking for to make sure everything is legit and there aren’t any red flags?
And on pricing—are there any clear signs you look for that a wholesaler has a deal priced too high? I’m trying to get better at spotting that upfront beyond just running my own numbers.
Appreciate any insight you can share.
Glad I could help provide some insight...
In short, daisy chaining is when a deal is passed through a "chain" of multiple wholesalers before it ever hits a real cash buyer.Instead of a clean transaction (Seller → Wholesaler → Buyer), you end up with Wholesaler A passing it to B, who passes it to C. Each person adds their own $5k–$10k assignment fee along the way.
The main reason to ask for the OG contract is to see what terms (outside of pp, they will black that out) the deal is under contract for...that way you have no suprises at closing. If a WS is hesitant to provide the OG contract when asked for (with their pp blacked out) that's a red flag
- Investor · St. Petersburg, FL · Member since 2026 · 83 posts · 49 votes5mo
Quote from @Michael Liggett:
Quote from @Korey Ralston:
Quote from @Michael Liggett:
Hey Korey - I actively work with wholesalers in my market (central Ohio); they are a key source for properties and an important part of the r/e market. If you are not including wholesalers, you are losing out on a lot of potential deals.
When it comes to filtering out the good from the bad...at least in my market, if someone is shady, the news travels fast. At the end of the day, its on you - the investor - to make the judgement call as well as do you due diligence. Ask if the property is being daisy-chained, ask to see the OG purchase contract, etc.
And finally - every price is negiotable. There are definitely deals put out (by agents and by wholesalers) that are way over. Offer the price that you think is fair...the worst they can do is say no.
Hey, I appreciate you breaking this down—super helpful perspective, especially on wholesalers being such a big part of deal flow.
Quick question for you—what does “daisy chaining” mean in this context? I’ve heard the term before but want to make sure I fully understand how it shows up in deals.
Also, when you ask to see the original (OG) purchase contract, what exactly should I be looking for to make sure everything is legit and there aren’t any red flags?
And on pricing—are there any clear signs you look for that a wholesaler has a deal priced too high? I’m trying to get better at spotting that upfront beyond just running my own numbers.
Appreciate any insight you can share.
Glad I could help provide some insight...
In short, daisy chaining is when a deal is passed through a "chain" of multiple wholesalers before it ever hits a real cash buyer.Instead of a clean transaction (Seller → Wholesaler → Buyer), you end up with Wholesaler A passing it to B, who passes it to C. Each person adds their own $5k–$10k assignment fee along the way.
The main reason to ask for the OG contract is to see what terms (outside of pp, they will black that out) the deal is under contract for...that way you have no suprises at closing. If a WS is hesitant to provide the OG contract when asked for (with their pp blacked out) that's a red flag
That actually helps a lot—I didn’t realize how messy those chains could get. So by the time it reaches the end buyer, is it usually already priced too high to make sense?
And with the OG contract, that makes sense too. I guess I just wasn’t sure what exactly I should be looking for in it besides the obvious terms. Are there specific things you check for every time?
Also, if someone pushes back on sharing it (even with the price blacked out), is that always a deal breaker for you or does it depend on the situation?
- Investor · Hendersonville, NC · Member since 2016 · 498 posts · 285 votes5mo
Quote from @Korey Ralston:
I’ve been going back and forth on this and wanted to get some real-world input from people actually doing deals.
On one hand, wholesalers seem like a great way to get access to off-market deals without having to build a full marketing machine yourself. It feels like a faster way to get in the game, especially starting out.
On the other hand, I’ve heard a lot of mixed opinions—deals being marked up too much, numbers not penciling out, or just getting blasted on massive buyers lists with the same property.
For those of you who have experience:
1. Do you actively work with wholesalers, or do you prefer to source deals yourself?
2. If you do use them, how do you filter out the good ones from the ones just pushing bad deals?
3. Have you actually closed solid deals through wholesalers that met your criteria?
And if you’ve had good experiences, would you recommend any specific wholesalers or how to go about finding reliable ones in a market?
Trying to figure out if this is a path worth leaning into or something to be cautious with. Appreciate any insight
Wholesalers can be useful, especially if you don’t have a network or marketing set up yet. But treat their deals with caution. Markups and inflated numbers are common, and you often get competing buyers on the same property, which drives prices up. You have to run your own numbers, not rely on theirs. If you decide to work with wholesalers, build a relationship with a few who have a track record rather than going after every deal. Over time, I would try to source your own leads,it’s more work but gives you control and better returns. Wholesalers can be a good stepping stone for sure.
- Investor · St. Petersburg, FL · Member since 2026 · 83 posts · 49 votes5mo
Quote from @Dominic Mazzarella:
Quote from @Korey Ralston:
I’ve been going back and forth on this and wanted to get some real-world input from people actually doing deals.
On one hand, wholesalers seem like a great way to get access to off-market deals without having to build a full marketing machine yourself. It feels like a faster way to get in the game, especially starting out.
On the other hand, I’ve heard a lot of mixed opinions—deals being marked up too much, numbers not penciling out, or just getting blasted on massive buyers lists with the same property.
For those of you who have experience:
1. Do you actively work with wholesalers, or do you prefer to source deals yourself?
2. If you do use them, how do you filter out the good ones from the ones just pushing bad deals?
3. Have you actually closed solid deals through wholesalers that met your criteria?
And if you’ve had good experiences, would you recommend any specific wholesalers or how to go about finding reliable ones in a market?
Trying to figure out if this is a path worth leaning into or something to be cautious with. Appreciate any insight
Wholesalers can be useful, especially if you don’t have a network or marketing set up yet. But treat their deals with caution. Markups and inflated numbers are common, and you often get competing buyers on the same property, which drives prices up. You have to run your own numbers, not rely on theirs. If you decide to work with wholesalers, build a relationship with a few who have a track record rather than going after every deal. Over time, I would try to source your own leads,it’s more work but gives you control and better returns. Wholesalers can be a good stepping stone for sure.
That’s a helpful perspective. I’ve been looking at some wholesale deals, but I’ve definitely been unsure how much to trust the numbers being presented. It makes sense to treat them more as leads than actual vetted opportunities and rely on my own underwriting instead of taking anything at face value.
The point about competition is something I’ve already started to notice too—some of those deals feel like they get bid up quickly, which kind of defeats the purpose if the margin disappears. Building relationships with a few solid wholesalers instead of chasing everything also sounds like a smarter approach than what I’ve been doing.
One thing I’m trying to get better at—are there specific red flags you look for that usually signal something’s off in a wholesale deal? Like certain numbers, assumptions, or even how the deal is presented that tend to be misleading?
- Investor · Hendersonville, NC · Member since 2016 · 498 posts · 285 votes5mo
Quote from @Korey Ralston:
Quote from @Dominic Mazzarella:
Quote from @Korey Ralston:
I’ve been going back and forth on this and wanted to get some real-world input from people actually doing deals.
On one hand, wholesalers seem like a great way to get access to off-market deals without having to build a full marketing machine yourself. It feels like a faster way to get in the game, especially starting out.
On the other hand, I’ve heard a lot of mixed opinions—deals being marked up too much, numbers not penciling out, or just getting blasted on massive buyers lists with the same property.
For those of you who have experience:
1. Do you actively work with wholesalers, or do you prefer to source deals yourself?
2. If you do use them, how do you filter out the good ones from the ones just pushing bad deals?
3. Have you actually closed solid deals through wholesalers that met your criteria?
And if you’ve had good experiences, would you recommend any specific wholesalers or how to go about finding reliable ones in a market?
Trying to figure out if this is a path worth leaning into or something to be cautious with. Appreciate any insight
Wholesalers can be useful, especially if you don’t have a network or marketing set up yet. But treat their deals with caution. Markups and inflated numbers are common, and you often get competing buyers on the same property, which drives prices up. You have to run your own numbers, not rely on theirs. If you decide to work with wholesalers, build a relationship with a few who have a track record rather than going after every deal. Over time, I would try to source your own leads,it’s more work but gives you control and better returns. Wholesalers can be a good stepping stone for sure.
That’s a helpful perspective. I’ve been looking at some wholesale deals, but I’ve definitely been unsure how much to trust the numbers being presented. It makes sense to treat them more as leads than actual vetted opportunities and rely on my own underwriting instead of taking anything at face value.
The point about competition is something I’ve already started to notice too—some of those deals feel like they get bid up quickly, which kind of defeats the purpose if the margin disappears. Building relationships with a few solid wholesalers instead of chasing everything also sounds like a smarter approach than what I’ve been doing.
One thing I’m trying to get better at—are there specific red flags you look for that usually signal something’s off in a wholesale deal? Like certain numbers, assumptions, or even how the deal is presented that tend to be misleading?
The biggest red flags for me are when the numbers feel a little too optimistic. Rehab looks light, rents feel stretched, or they skip over stuff instead of breaking it down. Also if there’s a lot of urgency but not a lot of detail, that’s usually not a great sign.
The good wholesalers I’ve worked with are pretty upfront about what’s wrong with the deal. If everything looks perfect, I usually assume I’m missing something.
- Investor · St. Petersburg, FL · Member since 2026 · 83 posts · 49 votes4mo
Quote from @Dominic Mazzarella:
Quote from @Korey Ralston:
Quote from @Dominic Mazzarella:
Quote from @Korey Ralston:
I’ve been going back and forth on this and wanted to get some real-world input from people actually doing deals.
On one hand, wholesalers seem like a great way to get access to off-market deals without having to build a full marketing machine yourself. It feels like a faster way to get in the game, especially starting out.
On the other hand, I’ve heard a lot of mixed opinions—deals being marked up too much, numbers not penciling out, or just getting blasted on massive buyers lists with the same property.
For those of you who have experience:
1. Do you actively work with wholesalers, or do you prefer to source deals yourself?
2. If you do use them, how do you filter out the good ones from the ones just pushing bad deals?
3. Have you actually closed solid deals through wholesalers that met your criteria?
And if you’ve had good experiences, would you recommend any specific wholesalers or how to go about finding reliable ones in a market?
Trying to figure out if this is a path worth leaning into or something to be cautious with. Appreciate any insight
Wholesalers can be useful, especially if you don’t have a network or marketing set up yet. But treat their deals with caution. Markups and inflated numbers are common, and you often get competing buyers on the same property, which drives prices up. You have to run your own numbers, not rely on theirs. If you decide to work with wholesalers, build a relationship with a few who have a track record rather than going after every deal. Over time, I would try to source your own leads,it’s more work but gives you control and better returns. Wholesalers can be a good stepping stone for sure.
That’s a helpful perspective. I’ve been looking at some wholesale deals, but I’ve definitely been unsure how much to trust the numbers being presented. It makes sense to treat them more as leads than actual vetted opportunities and rely on my own underwriting instead of taking anything at face value.
The point about competition is something I’ve already started to notice too—some of those deals feel like they get bid up quickly, which kind of defeats the purpose if the margin disappears. Building relationships with a few solid wholesalers instead of chasing everything also sounds like a smarter approach than what I’ve been doing.
One thing I’m trying to get better at—are there specific red flags you look for that usually signal something’s off in a wholesale deal? Like certain numbers, assumptions, or even how the deal is presented that tend to be misleading?
The biggest red flags for me are when the numbers feel a little too optimistic. Rehab looks light, rents feel stretched, or they skip over stuff instead of breaking it down. Also if there’s a lot of urgency but not a lot of detail, that’s usually not a great sign.
The good wholesalers I’ve worked with are pretty upfront about what’s wrong with the deal. If everything looks perfect, I usually assume I’m missing something.
That’s a sharp take. The too clean deals are usually the ones that come back to bite—real opportunities almost always have a few warts, and if those aren’t being addressed upfront, it’s a red flag. The urgency without substance is another giveaway; if it’s truly a solid deal, it should hold up under a little scrutiny.
I like your point about good wholesalers being transparent—it flips the dynamic from selling to actually collaborating on whether the deal works.
What’s been the biggest thing you’ve uncovered after digging into a deal that initially looked solid and how did you fix it?
- Investor · Hendersonville, NC · Member since 2016 · 498 posts · 285 votes4mo
Quote from @Korey Ralston:
Quote from @Dominic Mazzarella:
Quote from @Korey Ralston:
Quote from @Dominic Mazzarella:
Quote from @Korey Ralston:
I’ve been going back and forth on this and wanted to get some real-world input from people actually doing deals.
On one hand, wholesalers seem like a great way to get access to off-market deals without having to build a full marketing machine yourself. It feels like a faster way to get in the game, especially starting out.
On the other hand, I’ve heard a lot of mixed opinions—deals being marked up too much, numbers not penciling out, or just getting blasted on massive buyers lists with the same property.
For those of you who have experience:
1. Do you actively work with wholesalers, or do you prefer to source deals yourself?
2. If you do use them, how do you filter out the good ones from the ones just pushing bad deals?
3. Have you actually closed solid deals through wholesalers that met your criteria?
And if you’ve had good experiences, would you recommend any specific wholesalers or how to go about finding reliable ones in a market?
Trying to figure out if this is a path worth leaning into or something to be cautious with. Appreciate any insight
Wholesalers can be useful, especially if you don’t have a network or marketing set up yet. But treat their deals with caution. Markups and inflated numbers are common, and you often get competing buyers on the same property, which drives prices up. You have to run your own numbers, not rely on theirs. If you decide to work with wholesalers, build a relationship with a few who have a track record rather than going after every deal. Over time, I would try to source your own leads,it’s more work but gives you control and better returns. Wholesalers can be a good stepping stone for sure.
That’s a helpful perspective. I’ve been looking at some wholesale deals, but I’ve definitely been unsure how much to trust the numbers being presented. It makes sense to treat them more as leads than actual vetted opportunities and rely on my own underwriting instead of taking anything at face value.
The point about competition is something I’ve already started to notice too—some of those deals feel like they get bid up quickly, which kind of defeats the purpose if the margin disappears. Building relationships with a few solid wholesalers instead of chasing everything also sounds like a smarter approach than what I’ve been doing.
One thing I’m trying to get better at—are there specific red flags you look for that usually signal something’s off in a wholesale deal? Like certain numbers, assumptions, or even how the deal is presented that tend to be misleading?
The biggest red flags for me are when the numbers feel a little too optimistic. Rehab looks light, rents feel stretched, or they skip over stuff instead of breaking it down. Also if there’s a lot of urgency but not a lot of detail, that’s usually not a great sign.
The good wholesalers I’ve worked with are pretty upfront about what’s wrong with the deal. If everything looks perfect, I usually assume I’m missing something.
That’s a sharp take. The too clean deals are usually the ones that come back to bite—real opportunities almost always have a few warts, and if those aren’t being addressed upfront, it’s a red flag. The urgency without substance is another giveaway; if it’s truly a solid deal, it should hold up under a little scrutiny.
I like your point about good wholesalers being transparent—it flips the dynamic from selling to actually collaborating on whether the deal works.
What’s been the biggest thing you’ve uncovered after digging into a deal that initially looked solid and how did you fix it?
Plenty of stories there, but one that comes to mind was a property where everything looked pretty good until I had a plumber scope the private water lines. Turned out the water lines were going to be a six-figure problem if they had to be replaced.
I got multiple quotes, brought those back to the seller, and used it to negotiate the price down. That one still ended up being a very profitable deal, but only because I found the issue before closing instead of inheriting it afterward. That’s usually the difference. The problem itself doesn’t always kill the deal, but pretending it isn’t there will for sure.
- Investor · St. Petersburg, FL · Member since 2026 · 83 posts · 49 votes4mo
Quote from @Dominic Mazzarella:
Quote from @Korey Ralston:
Quote from @Dominic Mazzarella:
Quote from @Korey Ralston:
Quote from @Dominic Mazzarella:
Quote from @Korey Ralston:
I’ve been going back and forth on this and wanted to get some real-world input from people actually doing deals.
On one hand, wholesalers seem like a great way to get access to off-market deals without having to build a full marketing machine yourself. It feels like a faster way to get in the game, especially starting out.
On the other hand, I’ve heard a lot of mixed opinions—deals being marked up too much, numbers not penciling out, or just getting blasted on massive buyers lists with the same property.
For those of you who have experience:
1. Do you actively work with wholesalers, or do you prefer to source deals yourself?
2. If you do use them, how do you filter out the good ones from the ones just pushing bad deals?
3. Have you actually closed solid deals through wholesalers that met your criteria?
And if you’ve had good experiences, would you recommend any specific wholesalers or how to go about finding reliable ones in a market?
Trying to figure out if this is a path worth leaning into or something to be cautious with. Appreciate any insight
Wholesalers can be useful, especially if you don’t have a network or marketing set up yet. But treat their deals with caution. Markups and inflated numbers are common, and you often get competing buyers on the same property, which drives prices up. You have to run your own numbers, not rely on theirs. If you decide to work with wholesalers, build a relationship with a few who have a track record rather than going after every deal. Over time, I would try to source your own leads,it’s more work but gives you control and better returns. Wholesalers can be a good stepping stone for sure.
That’s a helpful perspective. I’ve been looking at some wholesale deals, but I’ve definitely been unsure how much to trust the numbers being presented. It makes sense to treat them more as leads than actual vetted opportunities and rely on my own underwriting instead of taking anything at face value.
The point about competition is something I’ve already started to notice too—some of those deals feel like they get bid up quickly, which kind of defeats the purpose if the margin disappears. Building relationships with a few solid wholesalers instead of chasing everything also sounds like a smarter approach than what I’ve been doing.
One thing I’m trying to get better at—are there specific red flags you look for that usually signal something’s off in a wholesale deal? Like certain numbers, assumptions, or even how the deal is presented that tend to be misleading?
The biggest red flags for me are when the numbers feel a little too optimistic. Rehab looks light, rents feel stretched, or they skip over stuff instead of breaking it down. Also if there’s a lot of urgency but not a lot of detail, that’s usually not a great sign.
The good wholesalers I’ve worked with are pretty upfront about what’s wrong with the deal. If everything looks perfect, I usually assume I’m missing something.
That’s a sharp take. The too clean deals are usually the ones that come back to bite—real opportunities almost always have a few warts, and if those aren’t being addressed upfront, it’s a red flag. The urgency without substance is another giveaway; if it’s truly a solid deal, it should hold up under a little scrutiny.
I like your point about good wholesalers being transparent—it flips the dynamic from selling to actually collaborating on whether the deal works.
What’s been the biggest thing you’ve uncovered after digging into a deal that initially looked solid and how did you fix it?
Plenty of stories there, but one that comes to mind was a property where everything looked pretty good until I had a plumber scope the private water lines. Turned out the water lines were going to be a six-figure problem if they had to be replaced.
I got multiple quotes, brought those back to the seller, and used it to negotiate the price down. That one still ended up being a very profitable deal, but only because I found the issue before closing instead of inheriting it afterward. That’s usually the difference. The problem itself doesn’t always kill the deal, but pretending it isn’t there will for sure.
That’s actually a great example of why experienced investors always stress inspections and due diligence so much. From the outside the deal probably still looked good, but a six-figure surprise after closing could completely change the numbers.
I think a lot of newer investors (myself included) sometimes focus so heavily on purchase price and ARV that we underestimate how important it is to catch the hidden infrastructure issues before closing. The fact that you got multiple quotes and used them to renegotiate instead of just walking away is really valuable insight too.
Out of curiosity, what made you decide to scope the water lines in the first place? Was there something that tipped you off, or is that just part of your standard inspection process now? How do you justify spending hundreds to thousands of dollars on inspections, is that something that you negotiate the price with to justify the expense?
Also, when you uncover a major issue like that, how do you decide whether it’s still worth pursuing versus walking away entirely? Is there a certain percentage of unexpected repair costs where the risk starts outweighing the upside for you?
Really appreciate you sharing real-world examples like this because those are the lessons newer investors usually don’t hear about until after they make a mistake themselves.
- Investor · Hendersonville, NC · Member since 2016 · 498 posts · 285 votes4moA couple things tipped me off to the water lines. 1) a tenant told me that there’s been water leaks for years and also the high water bills for the property size.
Quote from @Korey Ralston:
Quote from @Dominic Mazzarella:
Quote from @Korey Ralston:
Quote from @Dominic Mazzarella:
Quote from @Korey Ralston:
Quote from @Dominic Mazzarella:
Quote from @Korey Ralston:
I’ve been going back and forth on this and wanted to get some real-world input from people actually doing deals.
On one hand, wholesalers seem like a great way to get access to off-market deals without having to build a full marketing machine yourself. It feels like a faster way to get in the game, especially starting out.
On the other hand, I’ve heard a lot of mixed opinions—deals being marked up too much, numbers not penciling out, or just getting blasted on massive buyers lists with the same property.
For those of you who have experience:
1. Do you actively work with wholesalers, or do you prefer to source deals yourself?
2. If you do use them, how do you filter out the good ones from the ones just pushing bad deals?
3. Have you actually closed solid deals through wholesalers that met your criteria?
And if you’ve had good experiences, would you recommend any specific wholesalers or how to go about finding reliable ones in a market?
Trying to figure out if this is a path worth leaning into or something to be cautious with. Appreciate any insight
Wholesalers can be useful, especially if you don’t have a network or marketing set up yet. But treat their deals with caution. Markups and inflated numbers are common, and you often get competing buyers on the same property, which drives prices up. You have to run your own numbers, not rely on theirs. If you decide to work with wholesalers, build a relationship with a few who have a track record rather than going after every deal. Over time, I would try to source your own leads,it’s more work but gives you control and better returns. Wholesalers can be a good stepping stone for sure.
That’s a helpful perspective. I’ve been looking at some wholesale deals, but I’ve definitely been unsure how much to trust the numbers being presented. It makes sense to treat them more as leads than actual vetted opportunities and rely on my own underwriting instead of taking anything at face value.
The point about competition is something I’ve already started to notice too—some of those deals feel like they get bid up quickly, which kind of defeats the purpose if the margin disappears. Building relationships with a few solid wholesalers instead of chasing everything also sounds like a smarter approach than what I’ve been doing.
One thing I’m trying to get better at—are there specific red flags you look for that usually signal something’s off in a wholesale deal? Like certain numbers, assumptions, or even how the deal is presented that tend to be misleading?
The biggest red flags for me are when the numbers feel a little too optimistic. Rehab looks light, rents feel stretched, or they skip over stuff instead of breaking it down. Also if there’s a lot of urgency but not a lot of detail, that’s usually not a great sign.
The good wholesalers I’ve worked with are pretty upfront about what’s wrong with the deal. If everything looks perfect, I usually assume I’m missing something.
That’s a sharp take. The too clean deals are usually the ones that come back to bite—real opportunities almost always have a few warts, and if those aren’t being addressed upfront, it’s a red flag. The urgency without substance is another giveaway; if it’s truly a solid deal, it should hold up under a little scrutiny.
I like your point about good wholesalers being transparent—it flips the dynamic from selling to actually collaborating on whether the deal works.
What’s been the biggest thing you’ve uncovered after digging into a deal that initially looked solid and how did you fix it?
Plenty of stories there, but one that comes to mind was a property where everything looked pretty good until I had a plumber scope the private water lines. Turned out the water lines were going to be a six-figure problem if they had to be replaced.
I got multiple quotes, brought those back to the seller, and used it to negotiate the price down. That one still ended up being a very profitable deal, but only because I found the issue before closing instead of inheriting it afterward. That’s usually the difference. The problem itself doesn’t always kill the deal, but pretending it isn’t there will for sure.
That’s actually a great example of why experienced investors always stress inspections and due diligence so much. From the outside the deal probably still looked good, but a six-figure surprise after closing could completely change the numbers.
I think a lot of newer investors (myself included) sometimes focus so heavily on purchase price and ARV that we underestimate how important it is to catch the hidden infrastructure issues before closing. The fact that you got multiple quotes and used them to renegotiate instead of just walking away is really valuable insight too.
Out of curiosity, what made you decide to scope the water lines in the first place? Was there something that tipped you off, or is that just part of your standard inspection process now? How do you justify spending hundreds to thousands of dollars on inspections, is that something that you negotiate the price with to justify the expense?
Also, when you uncover a major issue like that, how do you decide whether it’s still worth pursuing versus walking away entirely? Is there a certain percentage of unexpected repair costs where the risk starts outweighing the upside for you?
Really appreciate you sharing real-world examples like this because those are the lessons newer investors usually don’t hear about until after they make a mistake themselves.
After that though, it’s all numbers. What does it cost to replace/will they come down on price, etc.
- Property Manager · Cleveland, OH · Member since 2021 · 8 posts · 8 votes4mo
I never like to shut down any deal pipelines. As long as the numbers pencil on my end, I don't care where the deal came from. And yes, it does irritate me a little just knowing that this wholesaler is about to make 20K off of me lol. You have to remember, you wouldn't have found the deal if it wasn't for the wholesaler.
- Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes4mo
Quote from @Korey Ralston:
I’ve been going back and forth on this and wanted to get some real-world input from people actually doing deals.
On one hand, wholesalers seem like a great way to get access to off-market deals without having to build a full marketing machine yourself. It feels like a faster way to get in the game, especially starting out.
On the other hand, I’ve heard a lot of mixed opinions—deals being marked up too much, numbers not penciling out, or just getting blasted on massive buyers lists with the same property.
For those of you who have experience:
1. Do you actively work with wholesalers, or do you prefer to source deals yourself?
2. If you do use them, how do you filter out the good ones from the ones just pushing bad deals?
3. Have you actually closed solid deals through wholesalers that met your criteria?
And if you’ve had good experiences, would you recommend any specific wholesalers or how to go about finding reliable ones in a market?
Trying to figure out if this is a path worth leaning into or something to be cautious with. Appreciate any insight
There are a couple of ways to look at wholesale deals.
1. Ones that you will buy cash. If you have the experience, that can be a good soluition to the time & expense of doing it yourself. Just tell the wholesaler in advance what you are looking for.
2. If you are using credit (bank loan or sophisticated hard money lender) they will be more cautious about lending on deals than you are, so your chances of doing "good" deals are imporving.
3. If you do what we do, Creative Financing, generally your profits greatly increase but your risks are on you. You really need to ow what you are doing. Don't fall for listening to the guys who say you can borrow the down payment and buy at MLS prices "because the loan rate" is so low. If you can't afford the down payment, how will you afford the payments and losing the house isn't part of the game plan. Get trained before you do anything creative.
In each situation, never take the wholesaler's word for it. He really doesn't know. He has not owned the house nor does he know what is really going on in the background and you don't know what he has told or agreed to with the seller.Since I buy at wholesale prices, I know the challenges wholesale houses have. They can be overcome, but some "good" deals have to be walked away from. (A common one is one with title problems.)
- Investor · St. Petersburg, FL · Member since 2026 · 83 posts · 49 votes4mo
Quote from @Ken M.:
Quote from @Korey Ralston:
I’ve been going back and forth on this and wanted to get some real-world input from people actually doing deals.
On one hand, wholesalers seem like a great way to get access to off-market deals without having to build a full marketing machine yourself. It feels like a faster way to get in the game, especially starting out.
On the other hand, I’ve heard a lot of mixed opinions—deals being marked up too much, numbers not penciling out, or just getting blasted on massive buyers lists with the same property.
For those of you who have experience:
1. Do you actively work with wholesalers, or do you prefer to source deals yourself?
2. If you do use them, how do you filter out the good ones from the ones just pushing bad deals?
3. Have you actually closed solid deals through wholesalers that met your criteria?
And if you’ve had good experiences, would you recommend any specific wholesalers or how to go about finding reliable ones in a market?
Trying to figure out if this is a path worth leaning into or something to be cautious with. Appreciate any insight
There are a couple of ways to look at wholesale deals.
1. Ones that you will buy cash. If you have the experience, that can be a good soluition to the time & expense of doing it yourself. Just tell the wholesaler in advance what you are looking for.
2. If you are using credit (bank loan or sophisticated hard money lender) they will be more cautious about lending on deals than you are, so your chances of doing "good" deals are imporving.
3. If you do what we do, Creative Financing, generally your profits greatly increase but your risks are on you. You really need to ow what you are doing. Don't fall for listening to the guys who say you can borrow the down payment and buy at MLS prices "because the loan rate" is so low. If you can't afford the down payment, how will you afford the payments and losing the house isn't part of the game plan. Get trained before you do anything creative.
In each situation, never take the wholesaler's word for it. He really doesn't know. He has not owned the house nor does he know what is really going on in the background and you don't know what he has told or agreed to with the seller.Since I buy at wholesale prices, I know the challenges wholesale houses have. They can be overcome, but some "good" deals have to be walked away from. (A common one is one with title problems.)
This is a really useful breakdown because it shows how the same wholesale deal can make sense—or not—depending entirely on how you’re structuring it.
The point about not taking the wholesaler’s word for it stands out a lot. I’m realizing more and more that they’re really just passing along information, not validating it. So the responsibility to verify everything (title, repairs, actual numbers) really sits on the buyer.
I also appreciate the distinction between cash, financed, and creative financing approaches. It makes sense that each one changes both your risk tolerance and how strict you need to be with the numbers.
For someone still early in learning, how would you recommend deciding which path to focus on first? Is it more about access to capital, risk tolerance, or just starting with the simplest structure to build experience?
And when you say some good deals still need to be walked away from—what’s your personal red flag threshold where you immediately step back, even if the price looks attractive on paper?
Also on the creative financing side, what’s the safest way for someone to start learning that without getting in over their head too early?
Really helpful perspective overall—especially the reminder that structure matters just as much as the deal itself.
- 4moMatthew MorrowBusiness MemberInvestor · PA - NY - NJ · Member since 2019 · 458 posts · 168 votes
Morning Korey,
There’s definitely good and bad in the wholesale space. As an investor and team lead, I’ve personally bought deals from wholesalers, sold wholesale deals ourselves, and worked with investors across multiple states. The key is understanding that not all wholesalers are operators. Some truly understand numbers, construction, exit strategy, and investor needs… others just blast anything with an address attached to it.
The best wholesalers I’ve worked with are the ones who are transparent, know their market, provide real numbers, and don’t try to force deals that don’t make sense. We’ve absolutely closed great off-market deals through wholesalers, but we underwrite every single one ourselves and never rely solely on their numbers. Starting out, wholesalers can absolutely help you get in the game faster and build deal flow without a giant marketing budget. Just don’t shut your brain off because someone says it’s a “deal.”
Biggest advice: build relationships with a few solid operators instead of chasing every email blast. Good wholesalers usually have repeat buyers for a reason. Happy to connect as well if you want to bounce around deal analysis or investment strategy ideas.
CORE Team | Realty ONE Group Supreme547 Reviews- 4moJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Quote from @Matthew Morrow:
Morning Korey,
There’s definitely good and bad in the wholesale space. As an investor and team lead, I’ve personally bought deals from wholesalers, sold wholesale deals ourselves, and worked with investors across multiple states. The key is understanding that not all wholesalers are operators. Some truly understand numbers, construction, exit strategy, and investor needs… others just blast anything with an address attached to it.
The best wholesalers I’ve worked with are the ones who are transparent, know their market, provide real numbers, and don’t try to force deals that don’t make sense. We’ve absolutely closed great off-market deals through wholesalers, but we underwrite every single one ourselves and never rely solely on their numbers. Starting out, wholesalers can absolutely help you get in the game faster and build deal flow without a giant marketing budget. Just don’t shut your brain off because someone says it’s a “deal.”
Biggest advice: build relationships with a few solid operators instead of chasing every email blast. Good wholesalers usually have repeat buyers for a reason. Happy to connect as well if you want to bounce around deal analysis or investment strategy ideas.
Other than many wholesale deals have hair on them so one has to be careful there.. But the ones who only accept CASH sales the buyer is taking on Title risks.. the reason is the title insurance company will only give you title insurance for the underlying contract so what does that mean in practice.
Purchase price from the owner is 100k your price is 120k wholesaler is making 20k you only get title insurance on 100k so now this hairy deal ends up with buggered title that got missed and the title insurer only pays you 100k you just lost 20k plus any money you put into rehab.
And of course the wholesaler demands you use their title company. What do you do ? You tell the title company you will pay for extra title insurance so you protect at least your 20k for maybe 100.00 extra premium.. Many will balk and say it cant be done but that is not correct I have funded 100s of these in my JV partner deals for my clients and I insist on the extra coverage or we wont close with that company and we find one that will insure us.. Now one wholesaler just pitched a fit in Ohio and I went back and forth with his title company and they simply wont do it so we moved to one that will but we don't source from that wholesaler anymore and they are missing out on my client buying 7 to 10 properties a year from them.
But it only takes on title claim were you lose big dollars and you are like shoot how did that happen well that's how and very few know this and many title companies closing attorneys don't know this unless asked like I do.. SO CASH buyers beware wholesaler deals are prone to title claims over time.. Now for many who just do a deal a year or so many times this will never raise its ugly head and you wont know the difference.. But for a company like mine that is funding buying 10 plus deals a month for my JV clients we average a title claim a year.For a smaller or starting investor who may get stuck in a title claim like this and lose thousands of dollars it could be a disaster for them depending on their financial strength not to mention the stress and usually they go lawyer up only to find out they still are not going to get paid more than the underlying contract price.
- Investor · St. Petersburg, FL · Member since 2026 · 83 posts · 49 votes4mo
Quote from @Matthew Morrow:
Morning Korey,
There’s definitely good and bad in the wholesale space. As an investor and team lead, I’ve personally bought deals from wholesalers, sold wholesale deals ourselves, and worked with investors across multiple states. The key is understanding that not all wholesalers are operators. Some truly understand numbers, construction, exit strategy, and investor needs… others just blast anything with an address attached to it.
The best wholesalers I’ve worked with are the ones who are transparent, know their market, provide real numbers, and don’t try to force deals that don’t make sense. We’ve absolutely closed great off-market deals through wholesalers, but we underwrite every single one ourselves and never rely solely on their numbers. Starting out, wholesalers can absolutely help you get in the game faster and build deal flow without a giant marketing budget. Just don’t shut your brain off because someone says it’s a “deal.”
Biggest advice: build relationships with a few solid operators instead of chasing every email blast. Good wholesalers usually have repeat buyers for a reason. Happy to connect as well if you want to bounce around deal analysis or investment strategy ideas.
This makes a lot of sense, especially the distinction between wholesalers who are actual operators vs. people just marketing deals. I’m starting to see how important it is to treat every deal as something you personally underwrite, regardless of where it comes from.
The idea of building relationships with a few solid wholesalers instead of reacting to every email blast is something I probably haven’t been intentional enough about yet. I can see how having trusted sources would make the whole process less noisy and more consistent.
When you’re evaluating a new wholesaler, what’s usually the first thing you look for to decide if they’re worth building a relationship with? Is it accuracy in their numbers, how they source deals, or how they communicate?
Also, when you say you never rely solely on their numbers, what’s your personal underwriting process like when you first receive a deal? Do you always start from scratch with comps and repairs, or do you use their info as a starting point?
And for someone still early, how many wholesalers would you recommend actually working with at once before it becomes overwhelming or low-quality?
Appreciate you sharing the operator side of this—it really helps connect the dots between theory and how deals actually get done in practice.
- Investor · St. Petersburg, FL · Member since 2026 · 83 posts · 49 votes4mo
Quote from @Jay Hinrichs:
Quote from @Matthew Morrow:
Morning Korey,
There’s definitely good and bad in the wholesale space. As an investor and team lead, I’ve personally bought deals from wholesalers, sold wholesale deals ourselves, and worked with investors across multiple states. The key is understanding that not all wholesalers are operators. Some truly understand numbers, construction, exit strategy, and investor needs… others just blast anything with an address attached to it.
The best wholesalers I’ve worked with are the ones who are transparent, know their market, provide real numbers, and don’t try to force deals that don’t make sense. We’ve absolutely closed great off-market deals through wholesalers, but we underwrite every single one ourselves and never rely solely on their numbers. Starting out, wholesalers can absolutely help you get in the game faster and build deal flow without a giant marketing budget. Just don’t shut your brain off because someone says it’s a “deal.”
Biggest advice: build relationships with a few solid operators instead of chasing every email blast. Good wholesalers usually have repeat buyers for a reason. Happy to connect as well if you want to bounce around deal analysis or investment strategy ideas.
Other than many wholesale deals have hair on them so one has to be careful there.. But the ones who only accept CASH sales the buyer is taking on Title risks.. the reason is the title insurance company will only give you title insurance for the underlying contract so what does that mean in practice.
Purchase price from the owner is 100k your price is 120k wholesaler is making 20k you only get title insurance on 100k so now this hairy deal ends up with buggered title that got missed and the title insurer only pays you 100k you just lost 20k plus any money you put into rehab.
And of course the wholesaler demands you use their title company. What do you do ? You tell the title company you will pay for extra title insurance so you protect at least your 20k for maybe 100.00 extra premium.. Many will balk and say it cant be done but that is not correct I have funded 100s of these in my JV partner deals for my clients and I insist on the extra coverage or we wont close with that company and we find one that will insure us.. Now one wholesaler just pitched a fit in Ohio and I went back and forth with his title company and they simply wont do it so we moved to one that will but we don't source from that wholesaler anymore and they are missing out on my client buying 7 to 10 properties a year from them.
But it only takes on title claim were you lose big dollars and you are like shoot how did that happen well that's how and very few know this and many title companies closing attorneys don't know this unless asked like I do.. SO CASH buyers beware wholesaler deals are prone to title claims over time.. Now for many who just do a deal a year or so many times this will never raise its ugly head and you wont know the difference.. But for a company like mine that is funding buying 10 plus deals a month for my JV clients we average a title claim a year.For a smaller or starting investor who may get stuck in a title claim like this and lose thousands of dollars it could be a disaster for them depending on their financial strength not to mention the stress and usually they go lawyer up only to find out they still are not going to get paid more than the underlying contract price.
This is one of those topics most beginners don’t hear early enough, so it’s actually really valuable context.
The core issue you’re pointing out makes sense: in a wholesale assignment structure, the title insurance is typically tied to the original purchase price, not the higher assignment price. So if there’s a hidden title defect, the protection gap can land entirely on the buyer’s spread—which is exactly where investors think they’re making their profit.
The idea of proactively asking for additional coverage to insure the assignment fee or spread is interesting, and it also highlights something I’m starting to notice a lot: deals aren’t just about price and rehab, they’re also about how the legal and insurance structure is set up before closing. That part feels just as important as underwriting the numbers.
A couple things I’m trying to understand better from your experience:
When you say you move to a different title company that will insure the spread, is that something most investors can realistically negotiate early on, or does it require more experience / volume before title companies take that request seriously?
Also, in your experience, are these title issues more common in certain types of wholesale deals (like distressed properties, probate, tax liens, etc.), or is it more random across the board?
And for someone still early and doing smaller volume, what’s the simplest way to protect themselves without overcomplicating every deal or getting stuck in legal details they don’t fully understand yet?
Really helpful insight here—this is exactly the kind of hidden risk layer that doesn’t show up in basic deal analysis.
- 4moMatthew MorrowBusiness MemberInvestor · PA - NY - NJ · Member since 2019 · 458 posts · 168 votes
Quote from @Korey Ralston:
You’re already looking at it the right way. The biggest thing is realizing you’re not really buying a “wholesale deal” — you’re making a business decision that you’ll own after closing. Good operators understand that fast.
For us, the first thing we usually look for is honesty and realism. The numbers don’t need to be perfect, but if somebody is constantly inflating ARVs, hiding issues, rushing people, or clearly never even walked the property, that’s usually a bad sign. The wholesalers we work with long term are the ones who communicate well, know their product, and don’t try to force deals that don’t make sense.
And honestly, we underwrite everything ourselves from scratch. We’ll use their numbers as a quick starting point, but we still run our own comps, repair numbers, rents, taxes, insurance, financing, all of it. We always ask ourselves, “Would we actually buy this at this price?” If not, we move on pretty quick.
If you’re early on, I’d focus on maybe 3-5 good wholesalers max. Way better than chasing 100 email blasts every morning. Once you build relationships with a few solid people, they start bringing you stuff that actually fits your buy box instead of just spamming every deal they lock up.
A good wholesaler relationship can become a huge advantage over time. A bad one just burns time and creates noise.
You’re already looking at it the right way. The biggest thing is realizing you’re not really buying a “wholesale deal” — you’re making a business decision that you’ll own after closing. Good operators understand that fast.
For us, the first thing we usually look for is honesty and realism. The numbers don’t need to be perfect, but if somebody is constantly inflating ARVs, hiding issues, rushing people, or clearly never even walked the property, that’s usually a bad sign. The wholesalers we work with long term are the ones who communicate well, know their product, and don’t try to force deals that don’t make sense.
And honestly, we underwrite everything ourselves from scratch. We’ll use their numbers as a quick starting point, but we still run our own comps, repair numbers, rents, taxes, insurance, financing, all of it. We always ask ourselves, “Would we actually buy this at this price?” If not, we move on pretty quick.
If you’re early on, I’d focus on maybe 3-5 good wholesalers max. Way better than chasing 100 email blasts every morning. Once you build relationships with a few solid people, they start bringing you stuff that actually fits your buy box instead of just spamming every deal they lock up.
A good wholesaler relationship can become a huge advantage over time. A bad one just burns time and creates noise.
CORE Team | Realty ONE Group Supreme547 Reviews - 4moJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Quote from @Korey Ralston:
Quote from @Jay Hinrichs:
Quote from @Matthew Morrow:
Morning Korey,
There’s definitely good and bad in the wholesale space. As an investor and team lead, I’ve personally bought deals from wholesalers, sold wholesale deals ourselves, and worked with investors across multiple states. The key is understanding that not all wholesalers are operators. Some truly understand numbers, construction, exit strategy, and investor needs… others just blast anything with an address attached to it.
The best wholesalers I’ve worked with are the ones who are transparent, know their market, provide real numbers, and don’t try to force deals that don’t make sense. We’ve absolutely closed great off-market deals through wholesalers, but we underwrite every single one ourselves and never rely solely on their numbers. Starting out, wholesalers can absolutely help you get in the game faster and build deal flow without a giant marketing budget. Just don’t shut your brain off because someone says it’s a “deal.”
Biggest advice: build relationships with a few solid operators instead of chasing every email blast. Good wholesalers usually have repeat buyers for a reason. Happy to connect as well if you want to bounce around deal analysis or investment strategy ideas.
Other than many wholesale deals have hair on them so one has to be careful there.. But the ones who only accept CASH sales the buyer is taking on Title risks.. the reason is the title insurance company will only give you title insurance for the underlying contract so what does that mean in practice.
Purchase price from the owner is 100k your price is 120k wholesaler is making 20k you only get title insurance on 100k so now this hairy deal ends up with buggered title that got missed and the title insurer only pays you 100k you just lost 20k plus any money you put into rehab.
And of course the wholesaler demands you use their title company. What do you do ? You tell the title company you will pay for extra title insurance so you protect at least your 20k for maybe 100.00 extra premium.. Many will balk and say it cant be done but that is not correct I have funded 100s of these in my JV partner deals for my clients and I insist on the extra coverage or we wont close with that company and we find one that will insure us.. Now one wholesaler just pitched a fit in Ohio and I went back and forth with his title company and they simply wont do it so we moved to one that will but we don't source from that wholesaler anymore and they are missing out on my client buying 7 to 10 properties a year from them.
But it only takes on title claim were you lose big dollars and you are like shoot how did that happen well that's how and very few know this and many title companies closing attorneys don't know this unless asked like I do.. SO CASH buyers beware wholesaler deals are prone to title claims over time.. Now for many who just do a deal a year or so many times this will never raise its ugly head and you wont know the difference.. But for a company like mine that is funding buying 10 plus deals a month for my JV clients we average a title claim a year.For a smaller or starting investor who may get stuck in a title claim like this and lose thousands of dollars it could be a disaster for them depending on their financial strength not to mention the stress and usually they go lawyer up only to find out they still are not going to get paid more than the underlying contract price.
This is one of those topics most beginners don’t hear early enough, so it’s actually really valuable context.
The core issue you’re pointing out makes sense: in a wholesale assignment structure, the title insurance is typically tied to the original purchase price, not the higher assignment price. So if there’s a hidden title defect, the protection gap can land entirely on the buyer’s spread—which is exactly where investors think they’re making their profit.
The idea of proactively asking for additional coverage to insure the assignment fee or spread is interesting, and it also highlights something I’m starting to notice a lot: deals aren’t just about price and rehab, they’re also about how the legal and insurance structure is set up before closing. That part feels just as important as underwriting the numbers.
A couple things I’m trying to understand better from your experience:
When you say you move to a different title company that will insure the spread, is that something most investors can realistically negotiate early on, or does it require more experience / volume before title companies take that request seriously?
Also, in your experience, are these title issues more common in certain types of wholesale deals (like distressed properties, probate, tax liens, etc.), or is it more random across the board?
And for someone still early and doing smaller volume, what’s the simplest way to protect themselves without overcomplicating every deal or getting stuck in legal details they don’t fully understand yet?
Really helpful insight here—this is exactly the kind of hidden risk layer that doesn’t show up in basic deal analysis.
U can start by talking to title and escrow companies and telling them your going to buy from a wholesaler but you want to pay for extra title insurance to cover the total cost ( original contract and assingment fee) Once one agrees to that .. Then you tell the wholesaler you need to close with that company I mean your paying all the fee's anyway.. although the rub is the wholesaler will already have escrow set up and switching companies they may not want to do and the wholesaler 9 times out of 10 does not know this about title insurance. Most title companies will say know but you have to push them to actually call their underwriter and ask if they will do this. Some will do it and approve some will not.
I get it my way because this is MY money and its my way or the Highway and I am doing volume not just one off.
So in real world title claims here are the last 3 in the last 1.5 years I have had.
1. Fraud bad guy stole property from someone in Australia and used a forged deed to transfer title wholesaler has 15k on it and we were protected with our additional insurance and title company turned fraudster into the authorities. We could still not find the AU owner and since we got paid off on the title policy but we still were in title to the property we then did a quiet title action and ended up another year later owning the property free and clear. we got the benefit of it but quiet title took 5k and another year.
2. Missed relatives in the chain of title one relative sold it but did not have the right to sell it title missed it this one title company defended us but it took 6 months of back and forth nasty letters threats etc until they paid in the meantime one relative was squatting and then we had to evict them. wholesaler would not pay their fee back to the title company so not sure if title sued them or not.
3. Another missed title search and title was buggered this one we did not have the extended coverage and I lost 10k and it took a year to unwind. And we did 50k worth of work. We eventually got title and basically broke even on the deal or maybe lost a little bit. Just cost of doing bizz for us but for someone doing one or so a year this can be a major issue.
I have seen 50 to 100k assignment fee's and I simply wont pay them unless I get title insurance although to be frank I wont fund those out of respect for the original seller who is getting ripped off in my mind so its more on my moral compass than bizz. In my mind wholesalers with that kind of spread have lied to the owner on the value of property.
Now this is for CASH ONLY buyers if you getting a hard money loan the lender will have a lenders title policy for the full loan amount but your down payment would be at risk and any rehab and or interest only payments or anything else you paid out of pocket utls taxs insurance etc.. - Investor · St. Petersburg, FL · Member since 2026 · 83 posts · 49 votes4mo
Quote from @Jay Hinrichs:
Quote from @Korey Ralston:
Quote from @Jay Hinrichs:
Quote from @Matthew Morrow:
Morning Korey,
There’s definitely good and bad in the wholesale space. As an investor and team lead, I’ve personally bought deals from wholesalers, sold wholesale deals ourselves, and worked with investors across multiple states. The key is understanding that not all wholesalers are operators. Some truly understand numbers, construction, exit strategy, and investor needs… others just blast anything with an address attached to it.
The best wholesalers I’ve worked with are the ones who are transparent, know their market, provide real numbers, and don’t try to force deals that don’t make sense. We’ve absolutely closed great off-market deals through wholesalers, but we underwrite every single one ourselves and never rely solely on their numbers. Starting out, wholesalers can absolutely help you get in the game faster and build deal flow without a giant marketing budget. Just don’t shut your brain off because someone says it’s a “deal.”
Biggest advice: build relationships with a few solid operators instead of chasing every email blast. Good wholesalers usually have repeat buyers for a reason. Happy to connect as well if you want to bounce around deal analysis or investment strategy ideas.
Other than many wholesale deals have hair on them so one has to be careful there.. But the ones who only accept CASH sales the buyer is taking on Title risks.. the reason is the title insurance company will only give you title insurance for the underlying contract so what does that mean in practice.
Purchase price from the owner is 100k your price is 120k wholesaler is making 20k you only get title insurance on 100k so now this hairy deal ends up with buggered title that got missed and the title insurer only pays you 100k you just lost 20k plus any money you put into rehab.
And of course the wholesaler demands you use their title company. What do you do ? You tell the title company you will pay for extra title insurance so you protect at least your 20k for maybe 100.00 extra premium.. Many will balk and say it cant be done but that is not correct I have funded 100s of these in my JV partner deals for my clients and I insist on the extra coverage or we wont close with that company and we find one that will insure us.. Now one wholesaler just pitched a fit in Ohio and I went back and forth with his title company and they simply wont do it so we moved to one that will but we don't source from that wholesaler anymore and they are missing out on my client buying 7 to 10 properties a year from them.
But it only takes on title claim were you lose big dollars and you are like shoot how did that happen well that's how and very few know this and many title companies closing attorneys don't know this unless asked like I do.. SO CASH buyers beware wholesaler deals are prone to title claims over time.. Now for many who just do a deal a year or so many times this will never raise its ugly head and you wont know the difference.. But for a company like mine that is funding buying 10 plus deals a month for my JV clients we average a title claim a year.For a smaller or starting investor who may get stuck in a title claim like this and lose thousands of dollars it could be a disaster for them depending on their financial strength not to mention the stress and usually they go lawyer up only to find out they still are not going to get paid more than the underlying contract price.
This is one of those topics most beginners don’t hear early enough, so it’s actually really valuable context.
The core issue you’re pointing out makes sense: in a wholesale assignment structure, the title insurance is typically tied to the original purchase price, not the higher assignment price. So if there’s a hidden title defect, the protection gap can land entirely on the buyer’s spread—which is exactly where investors think they’re making their profit.
The idea of proactively asking for additional coverage to insure the assignment fee or spread is interesting, and it also highlights something I’m starting to notice a lot: deals aren’t just about price and rehab, they’re also about how the legal and insurance structure is set up before closing. That part feels just as important as underwriting the numbers.
A couple things I’m trying to understand better from your experience:
When you say you move to a different title company that will insure the spread, is that something most investors can realistically negotiate early on, or does it require more experience / volume before title companies take that request seriously?
Also, in your experience, are these title issues more common in certain types of wholesale deals (like distressed properties, probate, tax liens, etc.), or is it more random across the board?
And for someone still early and doing smaller volume, what’s the simplest way to protect themselves without overcomplicating every deal or getting stuck in legal details they don’t fully understand yet?
Really helpful insight here—this is exactly the kind of hidden risk layer that doesn’t show up in basic deal analysis.
U can start by talking to title and escrow companies and telling them your going to buy from a wholesaler but you want to pay for extra title insurance to cover the total cost ( original contract and assingment fee) Once one agrees to that .. Then you tell the wholesaler you need to close with that company I mean your paying all the fee's anyway.. although the rub is the wholesaler will already have escrow set up and switching companies they may not want to do and the wholesaler 9 times out of 10 does not know this about title insurance. Most title companies will say know but you have to push them to actually call their underwriter and ask if they will do this. Some will do it and approve some will not.
I get it my way because this is MY money and its my way or the Highway and I am doing volume not just one off.
So in real world title claims here are the last 3 in the last 1.5 years I have had.
1. Fraud bad guy stole property from someone in Australia and used a forged deed to transfer title wholesaler has 15k on it and we were protected with our additional insurance and title company turned fraudster into the authorities. We could still not find the AU owner and since we got paid off on the title policy but we still were in title to the property we then did a quiet title action and ended up another year later owning the property free and clear. we got the benefit of it but quiet title took 5k and another year.
2. Missed relatives in the chain of title one relative sold it but did not have the right to sell it title missed it this one title company defended us but it took 6 months of back and forth nasty letters threats etc until they paid in the meantime one relative was squatting and then we had to evict them. wholesaler would not pay their fee back to the title company so not sure if title sued them or not.
3. Another missed title search and title was buggered this one we did not have the extended coverage and I lost 10k and it took a year to unwind. And we did 50k worth of work. We eventually got title and basically broke even on the deal or maybe lost a little bit. Just cost of doing bizz for us but for someone doing one or so a year this can be a major issue.
I have seen 50 to 100k assignment fee's and I simply wont pay them unless I get title insurance although to be frank I wont fund those out of respect for the original seller who is getting ripped off in my mind so its more on my moral compass than bizz. In my mind wholesalers with that kind of spread have lied to the owner on the value of property.
Now this is for CASH ONLY buyers if you getting a hard money loan the lender will have a lenders title policy for the full loan amount but your down payment would be at risk and any rehab and or interest only payments or anything else you paid out of pocket utls taxs insurance etc..This is honestly the kind of real-world stuff that newer investors almost never hear about, so I appreciate you sharing it. I’m still pretty inexperienced, and before reading this I didn’t even realize you could request additional title coverage to protect against the assignment fee portion of a wholesale deal.
The examples you gave are kind of eye opening too — especially the forged deed situation. A lot of beginners (myself included) probably think title issues are rare edge cases until hearing stories like this.
A few things I’m curious about:
- Is there a specific type/name for this extended coverage when talking to title companies?
- Roughly how much more does the added coverage usually cost?
- Have you found certain states or markets where title issues are way more common?
- When you’re evaluating wholesalers now, are there certain red flags that immediately make you walk away before even getting to title?
Also interesting hearing your perspective on huge assignment fees. I feel like social media makes massive spreads sound normal, but I can see why that would raise concerns about how the original seller was treated.
- 4moDrew SygitBusiness MemberProperty Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
Quote from @Korey Ralston:
Quote from @Jay Hinrichs:
Quote from @Korey Ralston:
Quote from @Jay Hinrichs:
Quote from @Matthew Morrow:
Morning Korey,
There’s definitely good and bad in the wholesale space. As an investor and team lead, I’ve personally bought deals from wholesalers, sold wholesale deals ourselves, and worked with investors across multiple states. The key is understanding that not all wholesalers are operators. Some truly understand numbers, construction, exit strategy, and investor needs… others just blast anything with an address attached to it.
The best wholesalers I’ve worked with are the ones who are transparent, know their market, provide real numbers, and don’t try to force deals that don’t make sense. We’ve absolutely closed great off-market deals through wholesalers, but we underwrite every single one ourselves and never rely solely on their numbers. Starting out, wholesalers can absolutely help you get in the game faster and build deal flow without a giant marketing budget. Just don’t shut your brain off because someone says it’s a “deal.”
Biggest advice: build relationships with a few solid operators instead of chasing every email blast. Good wholesalers usually have repeat buyers for a reason. Happy to connect as well if you want to bounce around deal analysis or investment strategy ideas.
Other than many wholesale deals have hair on them so one has to be careful there.. But the ones who only accept CASH sales the buyer is taking on Title risks.. the reason is the title insurance company will only give you title insurance for the underlying contract so what does that mean in practice.
Purchase price from the owner is 100k your price is 120k wholesaler is making 20k you only get title insurance on 100k so now this hairy deal ends up with buggered title that got missed and the title insurer only pays you 100k you just lost 20k plus any money you put into rehab.
And of course the wholesaler demands you use their title company. What do you do ? You tell the title company you will pay for extra title insurance so you protect at least your 20k for maybe 100.00 extra premium.. Many will balk and say it cant be done but that is not correct I have funded 100s of these in my JV partner deals for my clients and I insist on the extra coverage or we wont close with that company and we find one that will insure us.. Now one wholesaler just pitched a fit in Ohio and I went back and forth with his title company and they simply wont do it so we moved to one that will but we don't source from that wholesaler anymore and they are missing out on my client buying 7 to 10 properties a year from them.
But it only takes on title claim were you lose big dollars and you are like shoot how did that happen well that's how and very few know this and many title companies closing attorneys don't know this unless asked like I do.. SO CASH buyers beware wholesaler deals are prone to title claims over time.. Now for many who just do a deal a year or so many times this will never raise its ugly head and you wont know the difference.. But for a company like mine that is funding buying 10 plus deals a month for my JV clients we average a title claim a year.For a smaller or starting investor who may get stuck in a title claim like this and lose thousands of dollars it could be a disaster for them depending on their financial strength not to mention the stress and usually they go lawyer up only to find out they still are not going to get paid more than the underlying contract price.
This is one of those topics most beginners don’t hear early enough, so it’s actually really valuable context.
The core issue you’re pointing out makes sense: in a wholesale assignment structure, the title insurance is typically tied to the original purchase price, not the higher assignment price. So if there’s a hidden title defect, the protection gap can land entirely on the buyer’s spread—which is exactly where investors think they’re making their profit.
The idea of proactively asking for additional coverage to insure the assignment fee or spread is interesting, and it also highlights something I’m starting to notice a lot: deals aren’t just about price and rehab, they’re also about how the legal and insurance structure is set up before closing. That part feels just as important as underwriting the numbers.
A couple things I’m trying to understand better from your experience:
When you say you move to a different title company that will insure the spread, is that something most investors can realistically negotiate early on, or does it require more experience / volume before title companies take that request seriously?
Also, in your experience, are these title issues more common in certain types of wholesale deals (like distressed properties, probate, tax liens, etc.), or is it more random across the board?
And for someone still early and doing smaller volume, what’s the simplest way to protect themselves without overcomplicating every deal or getting stuck in legal details they don’t fully understand yet?
Really helpful insight here—this is exactly the kind of hidden risk layer that doesn’t show up in basic deal analysis.
U can start by talking to title and escrow companies and telling them your going to buy from a wholesaler but you want to pay for extra title insurance to cover the total cost ( original contract and assingment fee) Once one agrees to that .. Then you tell the wholesaler you need to close with that company I mean your paying all the fee's anyway.. although the rub is the wholesaler will already have escrow set up and switching companies they may not want to do and the wholesaler 9 times out of 10 does not know this about title insurance. Most title companies will say know but you have to push them to actually call their underwriter and ask if they will do this. Some will do it and approve some will not.
I get it my way because this is MY money and its my way or the Highway and I am doing volume not just one off.
So in real world title claims here are the last 3 in the last 1.5 years I have had.
1. Fraud bad guy stole property from someone in Australia and used a forged deed to transfer title wholesaler has 15k on it and we were protected with our additional insurance and title company turned fraudster into the authorities. We could still not find the AU owner and since we got paid off on the title policy but we still were in title to the property we then did a quiet title action and ended up another year later owning the property free and clear. we got the benefit of it but quiet title took 5k and another year.
2. Missed relatives in the chain of title one relative sold it but did not have the right to sell it title missed it this one title company defended us but it took 6 months of back and forth nasty letters threats etc until they paid in the meantime one relative was squatting and then we had to evict them. wholesaler would not pay their fee back to the title company so not sure if title sued them or not.
3. Another missed title search and title was buggered this one we did not have the extended coverage and I lost 10k and it took a year to unwind. And we did 50k worth of work. We eventually got title and basically broke even on the deal or maybe lost a little bit. Just cost of doing bizz for us but for someone doing one or so a year this can be a major issue.
I have seen 50 to 100k assignment fee's and I simply wont pay them unless I get title insurance although to be frank I wont fund those out of respect for the original seller who is getting ripped off in my mind so its more on my moral compass than bizz. In my mind wholesalers with that kind of spread have lied to the owner on the value of property.
Now this is for CASH ONLY buyers if you getting a hard money loan the lender will have a lenders title policy for the full loan amount but your down payment would be at risk and any rehab and or interest only payments or anything else you paid out of pocket utls taxs insurance etc..This is honestly the kind of real-world stuff that newer investors almost never hear about, so I appreciate you sharing it. I’m still pretty inexperienced, and before reading this I didn’t even realize you could request additional title coverage to protect against the assignment fee portion of a wholesale deal.
The examples you gave are kind of eye opening too — especially the forged deed situation. A lot of beginners (myself included) probably think title issues are rare edge cases until hearing stories like this.
A few things I’m curious about:
- Is there a specific type/name for this extended coverage when talking to title companies?
- Roughly how much more does the added coverage usually cost?
- Have you found certain states or markets where title issues are way more common?
- When you’re evaluating wholesalers now, are there certain red flags that immediately make you walk away before even getting to title?
Also interesting hearing your perspective on huge assignment fees. I feel like social media makes massive spreads sound normal, but I can see why that would raise concerns about how the original seller was treated.
ALWAYS close with a title company in Michigan and get a title policy from the seller.
The ONLY exceptions are Sheriff & Tax Deeds, as they come from the government.
If someone is trying to sell you a property via Quit Claim Deed (QCD) - run!
- You do NOT know enough at this stage to have any idea how to measure the risk of buying via QCD.
Logical Property Management4.9458 Reviews - 4moJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Quote from @Korey Ralston:
Quote from @Jay Hinrichs:
Quote from @Korey Ralston:
Quote from @Jay Hinrichs:
Quote from @Matthew Morrow:
Morning Korey,
There’s definitely good and bad in the wholesale space. As an investor and team lead, I’ve personally bought deals from wholesalers, sold wholesale deals ourselves, and worked with investors across multiple states. The key is understanding that not all wholesalers are operators. Some truly understand numbers, construction, exit strategy, and investor needs… others just blast anything with an address attached to it.
The best wholesalers I’ve worked with are the ones who are transparent, know their market, provide real numbers, and don’t try to force deals that don’t make sense. We’ve absolutely closed great off-market deals through wholesalers, but we underwrite every single one ourselves and never rely solely on their numbers. Starting out, wholesalers can absolutely help you get in the game faster and build deal flow without a giant marketing budget. Just don’t shut your brain off because someone says it’s a “deal.”
Biggest advice: build relationships with a few solid operators instead of chasing every email blast. Good wholesalers usually have repeat buyers for a reason. Happy to connect as well if you want to bounce around deal analysis or investment strategy ideas.
Other than many wholesale deals have hair on them so one has to be careful there.. But the ones who only accept CASH sales the buyer is taking on Title risks.. the reason is the title insurance company will only give you title insurance for the underlying contract so what does that mean in practice.
Purchase price from the owner is 100k your price is 120k wholesaler is making 20k you only get title insurance on 100k so now this hairy deal ends up with buggered title that got missed and the title insurer only pays you 100k you just lost 20k plus any money you put into rehab.
And of course the wholesaler demands you use their title company. What do you do ? You tell the title company you will pay for extra title insurance so you protect at least your 20k for maybe 100.00 extra premium.. Many will balk and say it cant be done but that is not correct I have funded 100s of these in my JV partner deals for my clients and I insist on the extra coverage or we wont close with that company and we find one that will insure us.. Now one wholesaler just pitched a fit in Ohio and I went back and forth with his title company and they simply wont do it so we moved to one that will but we don't source from that wholesaler anymore and they are missing out on my client buying 7 to 10 properties a year from them.
But it only takes on title claim were you lose big dollars and you are like shoot how did that happen well that's how and very few know this and many title companies closing attorneys don't know this unless asked like I do.. SO CASH buyers beware wholesaler deals are prone to title claims over time.. Now for many who just do a deal a year or so many times this will never raise its ugly head and you wont know the difference.. But for a company like mine that is funding buying 10 plus deals a month for my JV clients we average a title claim a year.For a smaller or starting investor who may get stuck in a title claim like this and lose thousands of dollars it could be a disaster for them depending on their financial strength not to mention the stress and usually they go lawyer up only to find out they still are not going to get paid more than the underlying contract price.
This is one of those topics most beginners don’t hear early enough, so it’s actually really valuable context.
The core issue you’re pointing out makes sense: in a wholesale assignment structure, the title insurance is typically tied to the original purchase price, not the higher assignment price. So if there’s a hidden title defect, the protection gap can land entirely on the buyer’s spread—which is exactly where investors think they’re making their profit.
The idea of proactively asking for additional coverage to insure the assignment fee or spread is interesting, and it also highlights something I’m starting to notice a lot: deals aren’t just about price and rehab, they’re also about how the legal and insurance structure is set up before closing. That part feels just as important as underwriting the numbers.
A couple things I’m trying to understand better from your experience:
When you say you move to a different title company that will insure the spread, is that something most investors can realistically negotiate early on, or does it require more experience / volume before title companies take that request seriously?
Also, in your experience, are these title issues more common in certain types of wholesale deals (like distressed properties, probate, tax liens, etc.), or is it more random across the board?
And for someone still early and doing smaller volume, what’s the simplest way to protect themselves without overcomplicating every deal or getting stuck in legal details they don’t fully understand yet?
Really helpful insight here—this is exactly the kind of hidden risk layer that doesn’t show up in basic deal analysis.
U can start by talking to title and escrow companies and telling them your going to buy from a wholesaler but you want to pay for extra title insurance to cover the total cost ( original contract and assingment fee) Once one agrees to that .. Then you tell the wholesaler you need to close with that company I mean your paying all the fee's anyway.. although the rub is the wholesaler will already have escrow set up and switching companies they may not want to do and the wholesaler 9 times out of 10 does not know this about title insurance. Most title companies will say know but you have to push them to actually call their underwriter and ask if they will do this. Some will do it and approve some will not.
I get it my way because this is MY money and its my way or the Highway and I am doing volume not just one off.
So in real world title claims here are the last 3 in the last 1.5 years I have had.
1. Fraud bad guy stole property from someone in Australia and used a forged deed to transfer title wholesaler has 15k on it and we were protected with our additional insurance and title company turned fraudster into the authorities. We could still not find the AU owner and since we got paid off on the title policy but we still were in title to the property we then did a quiet title action and ended up another year later owning the property free and clear. we got the benefit of it but quiet title took 5k and another year.
2. Missed relatives in the chain of title one relative sold it but did not have the right to sell it title missed it this one title company defended us but it took 6 months of back and forth nasty letters threats etc until they paid in the meantime one relative was squatting and then we had to evict them. wholesaler would not pay their fee back to the title company so not sure if title sued them or not.
3. Another missed title search and title was buggered this one we did not have the extended coverage and I lost 10k and it took a year to unwind. And we did 50k worth of work. We eventually got title and basically broke even on the deal or maybe lost a little bit. Just cost of doing bizz for us but for someone doing one or so a year this can be a major issue.
I have seen 50 to 100k assignment fee's and I simply wont pay them unless I get title insurance although to be frank I wont fund those out of respect for the original seller who is getting ripped off in my mind so its more on my moral compass than bizz. In my mind wholesalers with that kind of spread have lied to the owner on the value of property.
Now this is for CASH ONLY buyers if you getting a hard money loan the lender will have a lenders title policy for the full loan amount but your down payment would be at risk and any rehab and or interest only payments or anything else you paid out of pocket utls taxs insurance etc..This is honestly the kind of real-world stuff that newer investors almost never hear about, so I appreciate you sharing it. I’m still pretty inexperienced, and before reading this I didn’t even realize you could request additional title coverage to protect against the assignment fee portion of a wholesale deal.
The examples you gave are kind of eye opening too — especially the forged deed situation. A lot of beginners (myself included) probably think title issues are rare edge cases until hearing stories like this.
A few things I’m curious about:
- Is there a specific type/name for this extended coverage when talking to title companies?
- Roughly how much more does the added coverage usually cost?
- Have you found certain states or markets where title issues are way more common?
- When you’re evaluating wholesalers now, are there certain red flags that immediately make you walk away before even getting to title?
Also interesting hearing your perspective on huge assignment fees. I feel like social media makes massive spreads sound normal, but I can see why that would raise concerns about how the original seller was treatedyou tell the title company you want a buyers policy for the total amount and will pay for it.. cost maybe 100 bucks or so on smaller deals 200k deals total. Again many to most will say it cant be done as your talking to the escrow officer or maybe the attorney and they may never have been asked the question and never done it so they just default to NO. you have to ask them to call their underwriter and ask some underwriters will do this some will not. Now again I only fund in about 8 markets so we do volume with many of these escrow companies and we can get them to do this for us. Or we move to one that will. So just ask. And you can talk to the escrow company and simply ask them what happens in a title claim and I have paid out the assignment fee is that covered and they will let you know I would do that just to confirm what I am telling you is how it works.
Wholesale many times is done on props with tough titles in areas were the owners historically have not done proper vesting and or move on but never actually get a divorce or whats common and happened to us is they deed out to 10 kids .. And one of the kids never got notified of the sale or signed off.
Forged title is a tough one again this takes a dishonest wholesaler or property dude/dudet to do this knowingly and the wholesaler does not know they get caught up in it as well. But the point is wholesaler makes a 20k assignment fee and is down the road you never going to get one of these guys to pay the money back 99% of the time the money is spent.. There are wholesalers that have wherewithal but many live like most Americans pay check to pay check.. And they did not do it intentionally so that just ghost the title company now title company may refuse to ever work with them again though.
- Investor · Malakoff, TX · Member since 2017 · 2k+ posts · 2k+ votes4moWhen you purchase land to build on how do you get title insurance to cover the value of what you build?
Quote from @Jay Hinrichs:
Quote from @Matthew Morrow:
Morning Korey,
There’s definitely good and bad in the wholesale space. As an investor and team lead, I’ve personally bought deals from wholesalers, sold wholesale deals ourselves, and worked with investors across multiple states. The key is understanding that not all wholesalers are operators. Some truly understand numbers, construction, exit strategy, and investor needs… others just blast anything with an address attached to it.
The best wholesalers I’ve worked with are the ones who are transparent, know their market, provide real numbers, and don’t try to force deals that don’t make sense. We’ve absolutely closed great off-market deals through wholesalers, but we underwrite every single one ourselves and never rely solely on their numbers. Starting out, wholesalers can absolutely help you get in the game faster and build deal flow without a giant marketing budget. Just don’t shut your brain off because someone says it’s a “deal.”
Biggest advice: build relationships with a few solid operators instead of chasing every email blast. Good wholesalers usually have repeat buyers for a reason. Happy to connect as well if you want to bounce around deal analysis or investment strategy ideas.
Other than many wholesale deals have hair on them so one has to be careful there.. But the ones who only accept CASH sales the buyer is taking on Title risks.. the reason is the title insurance company will only give you title insurance for the underlying contract so what does that mean in practice.
Purchase price from the owner is 100k your price is 120k wholesaler is making 20k you only get title insurance on 100k so now this hairy deal ends up with buggered title that got missed and the title insurer only pays you 100k you just lost 20k plus any money you put into rehab.
And of course the wholesaler demands you use their title company. What do you do ? You tell the title company you will pay for extra title insurance so you protect at least your 20k for maybe 100.00 extra premium.. Many will balk and say it cant be done but that is not correct I have funded 100s of these in my JV partner deals for my clients and I insist on the extra coverage or we wont close with that company and we find one that will insure us.. Now one wholesaler just pitched a fit in Ohio and I went back and forth with his title company and they simply wont do it so we moved to one that will but we don't source from that wholesaler anymore and they are missing out on my client buying 7 to 10 properties a year from them.
But it only takes on title claim were you lose big dollars and you are like shoot how did that happen well that's how and very few know this and many title companies closing attorneys don't know this unless asked like I do.. SO CASH buyers beware wholesaler deals are prone to title claims over time.. Now for many who just do a deal a year or so many times this will never raise its ugly head and you wont know the difference.. But for a company like mine that is funding buying 10 plus deals a month for my JV clients we average a title claim a year.For a smaller or starting investor who may get stuck in a title claim like this and lose thousands of dollars it could be a disaster for them depending on their financial strength not to mention the stress and usually they go lawyer up only to find out they still are not going to get paid more than the underlying contract price.
- 4moJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Quote from @Eric James:
When you purchase land to build on how do you get title insurance to cover the value of what you build?Quote from @Jay Hinrichs:
Quote from @Matthew Morrow:
Morning Korey,
There’s definitely good and bad in the wholesale space. As an investor and team lead, I’ve personally bought deals from wholesalers, sold wholesale deals ourselves, and worked with investors across multiple states. The key is understanding that not all wholesalers are operators. Some truly understand numbers, construction, exit strategy, and investor needs… others just blast anything with an address attached to it.
The best wholesalers I’ve worked with are the ones who are transparent, know their market, provide real numbers, and don’t try to force deals that don’t make sense. We’ve absolutely closed great off-market deals through wholesalers, but we underwrite every single one ourselves and never rely solely on their numbers. Starting out, wholesalers can absolutely help you get in the game faster and build deal flow without a giant marketing budget. Just don’t shut your brain off because someone says it’s a “deal.”
Biggest advice: build relationships with a few solid operators instead of chasing every email blast. Good wholesalers usually have repeat buyers for a reason. Happy to connect as well if you want to bounce around deal analysis or investment strategy ideas.
Other than many wholesale deals have hair on them so one has to be careful there.. But the ones who only accept CASH sales the buyer is taking on Title risks.. the reason is the title insurance company will only give you title insurance for the underlying contract so what does that mean in practice.
Purchase price from the owner is 100k your price is 120k wholesaler is making 20k you only get title insurance on 100k so now this hairy deal ends up with buggered title that got missed and the title insurer only pays you 100k you just lost 20k plus any money you put into rehab.
And of course the wholesaler demands you use their title company. What do you do ? You tell the title company you will pay for extra title insurance so you protect at least your 20k for maybe 100.00 extra premium.. Many will balk and say it cant be done but that is not correct I have funded 100s of these in my JV partner deals for my clients and I insist on the extra coverage or we wont close with that company and we find one that will insure us.. Now one wholesaler just pitched a fit in Ohio and I went back and forth with his title company and they simply wont do it so we moved to one that will but we don't source from that wholesaler anymore and they are missing out on my client buying 7 to 10 properties a year from them.
But it only takes on title claim were you lose big dollars and you are like shoot how did that happen well that's how and very few know this and many title companies closing attorneys don't know this unless asked like I do.. SO CASH buyers beware wholesaler deals are prone to title claims over time.. Now for many who just do a deal a year or so many times this will never raise its ugly head and you wont know the difference.. But for a company like mine that is funding buying 10 plus deals a month for my JV clients we average a title claim a year.For a smaller or starting investor who may get stuck in a title claim like this and lose thousands of dollars it could be a disaster for them depending on their financial strength not to mention the stress and usually they go lawyer up only to find out they still are not going to get paid more than the underlying contract price.
our new builds almost always have a lender so there is a lenders policy for the construction cost . If we are builing out of cash I pay for additional title insurance.. As stated this can be a tug of war with some title insurers but rest assured its done and can be done I have done it many time.s - Investor · Malakoff, TX · Member since 2017 · 2k+ posts · 2k+ votes4mo
Quote from @Jay Hinrichs:
Quote from @Eric James:
When you purchase land to build on how do you get title insurance to cover the value of what you build?Quote from @Jay Hinrichs:
Quote from @Matthew Morrow:
Morning Korey,
There’s definitely good and bad in the wholesale space. As an investor and team lead, I’ve personally bought deals from wholesalers, sold wholesale deals ourselves, and worked with investors across multiple states. The key is understanding that not all wholesalers are operators. Some truly understand numbers, construction, exit strategy, and investor needs… others just blast anything with an address attached to it.
The best wholesalers I’ve worked with are the ones who are transparent, know their market, provide real numbers, and don’t try to force deals that don’t make sense. We’ve absolutely closed great off-market deals through wholesalers, but we underwrite every single one ourselves and never rely solely on their numbers. Starting out, wholesalers can absolutely help you get in the game faster and build deal flow without a giant marketing budget. Just don’t shut your brain off because someone says it’s a “deal.”
Biggest advice: build relationships with a few solid operators instead of chasing every email blast. Good wholesalers usually have repeat buyers for a reason. Happy to connect as well if you want to bounce around deal analysis or investment strategy ideas.
Other than many wholesale deals have hair on them so one has to be careful there.. But the ones who only accept CASH sales the buyer is taking on Title risks.. the reason is the title insurance company will only give you title insurance for the underlying contract so what does that mean in practice.
Purchase price from the owner is 100k your price is 120k wholesaler is making 20k you only get title insurance on 100k so now this hairy deal ends up with buggered title that got missed and the title insurer only pays you 100k you just lost 20k plus any money you put into rehab.
And of course the wholesaler demands you use their title company. What do you do ? You tell the title company you will pay for extra title insurance so you protect at least your 20k for maybe 100.00 extra premium.. Many will balk and say it cant be done but that is not correct I have funded 100s of these in my JV partner deals for my clients and I insist on the extra coverage or we wont close with that company and we find one that will insure us.. Now one wholesaler just pitched a fit in Ohio and I went back and forth with his title company and they simply wont do it so we moved to one that will but we don't source from that wholesaler anymore and they are missing out on my client buying 7 to 10 properties a year from them.
But it only takes on title claim were you lose big dollars and you are like shoot how did that happen well that's how and very few know this and many title companies closing attorneys don't know this unless asked like I do.. SO CASH buyers beware wholesaler deals are prone to title claims over time.. Now for many who just do a deal a year or so many times this will never raise its ugly head and you wont know the difference.. But for a company like mine that is funding buying 10 plus deals a month for my JV clients we average a title claim a year.For a smaller or starting investor who may get stuck in a title claim like this and lose thousands of dollars it could be a disaster for them depending on their financial strength not to mention the stress and usually they go lawyer up only to find out they still are not going to get paid more than the underlying contract price.
our new builds almost always have a lender so there is a lenders policy for the construction cost . If we are builing out of cash I pay for additional title insurance.. As stated this can be a tug of war with some title insurers but rest assured its done and can be done I have done it many time.sGood to know!
- Virtual Assistant · Member since 2026 · 54 posts · 20 votes3mo
Quote from @Jay Hinrichs:
Quote from @Matthew Morrow:
Morning Korey,
There’s definitely good and bad in the wholesale space. As an investor and team lead, I’ve personally bought deals from wholesalers, sold wholesale deals ourselves, and worked with investors across multiple states. The key is understanding that not all wholesalers are operators. Some truly understand numbers, construction, exit strategy, and investor needs… others just blast anything with an address attached to it.
The best wholesalers I’ve worked with are the ones who are transparent, know their market, provide real numbers, and don’t try to force deals that don’t make sense. We’ve absolutely closed great off-market deals through wholesalers, but we underwrite every single one ourselves and never rely solely on their numbers. Starting out, wholesalers can absolutely help you get in the game faster and build deal flow without a giant marketing budget. Just don’t shut your brain off because someone says it’s a “deal.”
Biggest advice: build relationships with a few solid operators instead of chasing every email blast. Good wholesalers usually have repeat buyers for a reason. Happy to connect as well if you want to bounce around deal analysis or investment strategy ideas.
Other than many wholesale deals have hair on them so one has to be careful there.. But the ones who only accept CASH sales the buyer is taking on Title risks.. the reason is the title insurance company will only give you title insurance for the underlying contract so what does that mean in practice.
Purchase price from the owner is 100k your price is 120k wholesaler is making 20k you only get title insurance on 100k so now this hairy deal ends up with buggered title that got missed and the title insurer only pays you 100k you just lost 20k plus any money you put into rehab.
And of course the wholesaler demands you use their title company. What do you do ? You tell the title company you will pay for extra title insurance so you protect at least your 20k for maybe 100.00 extra premium.. Many will balk and say it cant be done but that is not correct I have funded 100s of these in my JV partner deals for my clients and I insist on the extra coverage or we wont close with that company and we find one that will insure us.. Now one wholesaler just pitched a fit in Ohio and I went back and forth with his title company and they simply wont do it so we moved to one that will but we don't source from that wholesaler anymore and they are missing out on my client buying 7 to 10 properties a year from them.
But it only takes on title claim were you lose big dollars and you are like shoot how did that happen well that's how and very few know this and many title companies closing attorneys don't know this unless asked like I do.. SO CASH buyers beware wholesaler deals are prone to title claims over time.. Now for many who just do a deal a year or so many times this will never raise its ugly head and you wont know the difference.. But for a company like mine that is funding buying 10 plus deals a month for my JV clients we average a title claim a year.For a smaller or starting investor who may get stuck in a title claim like this and lose thousands of dollars it could be a disaster for them depending on their financial strength not to mention the stress and usually they go lawyer up only to find out they still are not going to get paid more than the underlying contract price.
Good breakdown on both sides.
One thing I’ve noticed is the best wholesalers aren’t really “deal senders” — they’re more like deal filters. The difference is whether they actually understand buyer criteria before pushing inventory.
Curious — do you still actively take on new off-market deal flow from wholesalers, or are you mostly working with your existing trusted network now?
- 4moSam McCormackBusiness MemberReal Estate Agent · Cincinnati, OH/NKY · Member since 2021 · 1k+ posts · 833 votes
Quote from @Korey Ralston:
I’ve been going back and forth on this and wanted to get some real-world input from people actually doing deals.
On one hand, wholesalers seem like a great way to get access to off-market deals without having to build a full marketing machine yourself. It feels like a faster way to get in the game, especially starting out.
On the other hand, I’ve heard a lot of mixed opinions—deals being marked up too much, numbers not penciling out, or just getting blasted on massive buyers lists with the same property.
For those of you who have experience:
1. Do you actively work with wholesalers, or do you prefer to source deals yourself?
2. If you do use them, how do you filter out the good ones from the ones just pushing bad deals?
3. Have you actually closed solid deals through wholesalers that met your criteria?
And if you’ve had good experiences, would you recommend any specific wholesalers or how to go about finding reliable ones in a market?
Trying to figure out if this is a path worth leaning into or something to be cautious with. Appreciate any insight
Avoid, lol
Sam McCormack Realtor- Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes4mo
Quote from @Sam McCormack:
Quote from @Korey Ralston:
I’ve been going back and forth on this and wanted to get some real-world input from people actually doing deals.
On one hand, wholesalers seem like a great way to get access to off-market deals without having to build a full marketing machine yourself. It feels like a faster way to get in the game, especially starting out.
On the other hand, I’ve heard a lot of mixed opinions—deals being marked up too much, numbers not penciling out, or just getting blasted on massive buyers lists with the same property.
For those of you who have experience:
1. Do you actively work with wholesalers, or do you prefer to source deals yourself?
2. If you do use them, how do you filter out the good ones from the ones just pushing bad deals?
3. Have you actually closed solid deals through wholesalers that met your criteria?
And if you’ve had good experiences, would you recommend any specific wholesalers or how to go about finding reliable ones in a market?
Trying to figure out if this is a path worth leaning into or something to be cautious with. Appreciate any insight
Avoid, lol
Avoid
- 4moAlex KhanPro MemberSpecialist · Southeast Michigan · Member since 2015 · 300 posts · 244 votes
Quote from @Korey Ralston:
I’ve been going back and forth on this and wanted to get some real-world input from people actually doing deals.
On one hand, wholesalers seem like a great way to get access to off-market deals without having to build a full marketing machine yourself. It feels like a faster way to get in the game, especially starting out.
On the other hand, I’ve heard a lot of mixed opinions—deals being marked up too much, numbers not penciling out, or just getting blasted on massive buyers lists with the same property.
For those of you who have experience:
1. Do you actively work with wholesalers, or do you prefer to source deals yourself?
2. If you do use them, how do you filter out the good ones from the ones just pushing bad deals?
3. Have you actually closed solid deals through wholesalers that met your criteria?
And if you’ve had good experiences, would you recommend any specific wholesalers or how to go about finding reliable ones in a market?
Trying to figure out if this is a path worth leaning into or something to be cautious with. Appreciate any insight
It all boils down to the numbers..... Working with wholesalers can often get you a better deal. Just do your own due diligence and often times you can have your buyers agent still represent you through the process and even if you pay them 2-3% commission out of pocket you will still end up getting a better deal as opposed to something listed on the market.
The extremely good deals that are listed on the market will usually go pending the same day. The same deal off market with a wholesaler may take a week or so to sell. (if they know what they're doing)
Many new wholesalers don't know much of what they're doing or putting together which has caused buyers and sellers to be hesitant. If you find an experienced wholesaler doing deals more than likely you will get great deals from them. I see this happen way too often in my market where people just want to sign a pa and get property under contract without any intention to close. A good way to avoid this mess is just simply ask for a minimum $2,500 emd as a seller.
On the buyer side you want to make sure title is already ordered and you will also get a copy of the original PA before signing assignment.
- Investor · St. Petersburg, FL · Member since 2026 · 83 posts · 49 votes4mo
Quote from @Alex Khan:
Quote from @Korey Ralston:
I’ve been going back and forth on this and wanted to get some real-world input from people actually doing deals.
On one hand, wholesalers seem like a great way to get access to off-market deals without having to build a full marketing machine yourself. It feels like a faster way to get in the game, especially starting out.
On the other hand, I’ve heard a lot of mixed opinions—deals being marked up too much, numbers not penciling out, or just getting blasted on massive buyers lists with the same property.
For those of you who have experience:
1. Do you actively work with wholesalers, or do you prefer to source deals yourself?
2. If you do use them, how do you filter out the good ones from the ones just pushing bad deals?
3. Have you actually closed solid deals through wholesalers that met your criteria?
And if you’ve had good experiences, would you recommend any specific wholesalers or how to go about finding reliable ones in a market?
Trying to figure out if this is a path worth leaning into or something to be cautious with. Appreciate any insight
It all boils down to the numbers..... Working with wholesalers can often get you a better deal. Just do your own due diligence and often times you can have your buyers agent still represent you through the process and even if you pay them 2-3% commission out of pocket you will still end up getting a better deal as opposed to something listed on the market.
The extremely good deals that are listed on the market will usually go pending the same day. The same deal off market with a wholesaler may take a week or so to sell. (if they know what they're doing)
Many new wholesalers don't know much of what they're doing or putting together which has caused buyers and sellers to be hesitant. If you find an experienced wholesaler doing deals more than likely you will get great deals from them. I see this happen way too often in my market where people just want to sign a pa and get property under contract without any intention to close. A good way to avoid this mess is just simply ask for a minimum $2,500 emd as a seller.
On the buyer side you want to make sure title is already ordered and you will also get a copy of the original PA before signing assignment.
This is really helpful insight, especially for someone newer trying to understand the difference between on-market vs off-market deals.
The part about wholesalers getting access to deals before they ever hit the MLS is something I'm starting to realize more and more. It makes sense why some of the great listed deals disappear almost immediately.
I also appreciate the advice on due diligence. That’s honestly one of the things that makes me the most cautious as a beginner — figuring out how to separate experienced wholesalers from people just locking up contracts without real numbers or a real exit plan.
When you’re evaluating a wholesaler for the first time, what are the biggest green flags or red flags you look for? Is it mostly about transparency with the original PA/title work, or are there other things experienced investors watch for right away?
Also curious — when you say the numbers matter most, what's the first number you personally look at before spending more time on a deal? Cash flow, ARV spread, cash-on-cash return, equity percentage, something else?
Really appreciate you breaking this down from both the buyer and seller side. Lots of value in this comment.
- 4moAlex KhanPro MemberSpecialist · Southeast Michigan · Member since 2015 · 300 posts · 244 votes
@Korey Ralston The ARV and the amount of equity built into the deal as it is. If you're purchasing a "cash deal" off market it only makes sense to do the deal if you're getting a bargain. The cash flow will always follow as long as you get the right deal at the right price.
What makes it a bargain is the amount you're getting the property for must be a minimum of 20-30% less than what the same type of property in the same condition is selling for on the MLS.
I'm In the Metro Detroit market and to be successful here it is crucial to work with someone that knows the neighborhoods in and out as each block and area has its own unique characteristics and values.
I usually don't evaluate wholesalers, only the deals they bring to the table. The spread or how much they're making on the deal doesn't really matter much and it's only the value they are providing in the deal that matters.
If you're investing from out of state then you're much better off buying properties that need minimal rehab (cosmetics etc).I have been on both sides of the spectrum and it can be very lucrative to work with wholesalers. For example;
As a buyer, I have done some deals where I purchase from a wholesaler, do a clean out on the property and list it right away for a profit.
On the other hand as a seller: I've also sold off market deals for clients that just want out and do not want to deal with agents, inspections, showings and contingencies.
I have also sold my own properties through wholesalers in the past, if they know what they're doing they shouldn't have a problem putting down a EMD with their purchase agreement( Even if it's only $500)So at the end of the day it all boils down to the deal and numbers. A good way to look at it is that It's only worth buying from wholesaler if you know for a fact that you are getting a better deal than what you can find listed on the market and easily exit/ sell it for a profit on the market without putting a single dollar in it other than a lockbox or maximum $2,500 for a clean out.
if you can check these boxes on the deal then I'd say go for it.If you're presented an off market deal from a wholesaler and the house next door is selling for similar price on the MLS then you're better off just buying the listed property. On the other hand if it's 30% cheaper than the house selling next door then it's worth it. ( You must still do your due diligence/ inspection or contractor walk through prior to sending EMD)
- Investor · St. Petersburg, FL · Member since 2026 · 83 posts · 49 votes4mo
Quote from @Alex Khan:
@Korey Ralston The ARV and the amount of equity built into the deal as it is. If you're purchasing a "cash deal" off market it only makes sense to do the deal if you're getting a bargain. The cash flow will always follow as long as you get the right deal at the right price.
What makes it a bargain is the amount you're getting the property for must be a minimum of 20-30% less than what the same type of property in the same condition is selling for on the MLS.
I'm In the Metro Detroit market and to be successful here it is crucial to work with someone that knows the neighborhoods in and out as each block and area has its own unique characteristics and values.
I usually don't evaluate wholesalers, only the deals they bring to the table. The spread or how much they're making on the deal doesn't really matter much and it's only the value they are providing in the deal that matters.
If you're investing from out of state then you're much better off buying properties that need minimal rehab (cosmetics etc).I have been on both sides of the spectrum and it can be very lucrative to work with wholesalers. For example;
As a buyer, I have done some deals where I purchase from a wholesaler, do a clean out on the property and list it right away for a profit.
On the other hand as a seller: I've also sold off market deals for clients that just want out and do not want to deal with agents, inspections, showings and contingencies.
I have also sold my own properties through wholesalers in the past, if they know what they're doing they shouldn't have a problem putting down a EMD with their purchase agreement( Even if it's only $500)So at the end of the day it all boils down to the deal and numbers. A good way to look at it is that It's only worth buying from wholesaler if you know for a fact that you are getting a better deal than what you can find listed on the market and easily exit/ sell it for a profit on the market without putting a single dollar in it other than a lockbox or maximum $2,500 for a clean out.
if you can check these boxes on the deal then I'd say go for it.If you're presented an off market deal from a wholesaler and the house next door is selling for similar price on the MLS then you're better off just buying the listed property. On the other hand if it's 30% cheaper than the house selling next door then it's worth it. ( You must still do your due diligence/ inspection or contractor walk through prior to sending EMD)
This was really helpful to read because I’m still pretty new to investing and trying to understand how experienced investors actually evaluate wholesale deals beyond just is it cheap?
Your point about focusing on the deal itself rather than what the wholesaler is making makes a lot of sense. I think a lot of newer investors (myself included) probably get too caught up in the assignment fee instead of asking whether the numbers still work regardless.
A couple things I’m curious about:
- When you say 20–30% below comparable MLS pricing, is that before factoring in rehab costs or after?
- In Detroit specifically, how do you get comfortable with neighborhood-by-neighborhood risk if you’re newer to the market?
- Have insurance/taxes changed your buy criteria much recently?
- For cosmetic-only deals, what’s usually the biggest hidden issue newer investors underestimate?
Also liked your point about comparing the wholesale price to what’s already listed on market. Seems obvious when you say it that way, but I feel like a lot of people get blinded by the word off market and assume it automatically means a great deal.
- 4moAlex KhanPro MemberSpecialist · Southeast Michigan · Member since 2015 · 300 posts · 244 votes
@Korey Ralston The 20-30% is for likewise property. For example the same condition property selling on the MLS is 100k which needs cosmetics and the property that is off market needs the same amount of work and you're getting it for 70k then you have a winner there. ( still do your due diligence )
If the property is turnkey and meets FHA standards is selling for 200k and you're able to buy it off market for 160-170k and maybe do some light touch ups cleaning and it will be the same as the one selling on MLS for 200k then you have a great deal there.
As far as which neighborhoods to buy in for a market like Detroit you just have to stay focused on the neighborhoods where it's been completely gentrified and there's only a couple left on the block. This way you aren't having issues in the future for appraisals, obtaining financing, exiting or finding tenants etc... Experience goes a long way when it comes to these areas and working with someone that knows the market in and out.
I personally always recommend that anyone looking to invest or investing in Detroit to take a weekend out and fly out to see the city and visit the neighborhoods in person to get a feel for the area and neighborhoods.
You're much better off doing this to get a better idea on which areas you want to invest in and for a peace of mind which is ultimately priceless at the end of the day and will save you from trouble in the long run.
lately there has been way too many newbie's that have no clue what they're doing and just want to get properties under contract with no intention to close just to try to make a quick buck.
Personally, I don't recommend for anyone starting out to buy anything that needs extensive rehab. ( Maximum paint , carpet and light cosmetics is the sweet spot) regardless of the market especially if you're not local.
- Investor · Akron, OH · Member since 2016 · 2k+ posts · 4k+ votes4mo
The ones that reach out to me are almost always selling 'hovels in the 'hood'' not anything nice. Most of the 'off market' deals I've done have been through friends of my contractors or other owners in the neighborhoods where I already own properties or through my commercial real estate agent.
- Realtor · OH · Member since 2026 · 122 posts · 77 votes4mo
Quote from @Korey Ralston:
I’ve been going back and forth on this and wanted to get some real-world input from people actually doing deals.
On one hand, wholesalers seem like a great way to get access to off-market deals without having to build a full marketing machine yourself. It feels like a faster way to get in the game, especially starting out.
On the other hand, I’ve heard a lot of mixed opinions—deals being marked up too much, numbers not penciling out, or just getting blasted on massive buyers lists with the same property.
For those of you who have experience:
1. Do you actively work with wholesalers, or do you prefer to source deals yourself?
2. If you do use them, how do you filter out the good ones from the ones just pushing bad deals?
3. Have you actually closed solid deals through wholesalers that met your criteria?
And if you’ve had good experiences, would you recommend any specific wholesalers or how to go about finding reliable ones in a market?
Trying to figure out if this is a path worth leaning into or something to be cautious with. Appreciate any insight
Working with wholesalers is a "trust but verify" strategy where you essentially outsource the high cost of direct-to-seller marketing in exchange for an assignment fee, but success in 2026 requires treating their numbers as raw data rather than facts. To filter out the "noise," you must ignore their projected ARVs and repair estimates—which are frequently underestimated to make a deal look better—and perform your own rigorous underwriting based on current labor costs and 2026 neighborhood comps. The most reliable wholesalers are those who have a direct contract with the seller rather than being part of a "daisy chain" of bird-dogs adding multiple fees; you can find these top-tier operators by tracking recent cash closings in your target zip codes and reaching out with proof of funds to secure their "pocket listings" before they hit a mass blast. Ultimately, wholesalers are worth the effort if you have the discipline to vet every deal yourself and the speed to close on the rare 1% that actually pencils out in a high-interest environment. I hope that helps.- Investor · St. Petersburg, FL · Member since 2026 · 83 posts · 49 votes4mo
Quote from @Alioune Camara:
Quote from @Korey Ralston:
I’ve been going back and forth on this and wanted to get some real-world input from people actually doing deals.
On one hand, wholesalers seem like a great way to get access to off-market deals without having to build a full marketing machine yourself. It feels like a faster way to get in the game, especially starting out.
On the other hand, I’ve heard a lot of mixed opinions—deals being marked up too much, numbers not penciling out, or just getting blasted on massive buyers lists with the same property.
For those of you who have experience:
1. Do you actively work with wholesalers, or do you prefer to source deals yourself?
2. If you do use them, how do you filter out the good ones from the ones just pushing bad deals?
3. Have you actually closed solid deals through wholesalers that met your criteria?
And if you’ve had good experiences, would you recommend any specific wholesalers or how to go about finding reliable ones in a market?
Trying to figure out if this is a path worth leaning into or something to be cautious with. Appreciate any insight
Working with wholesalers is a "trust but verify" strategy where you essentially outsource the high cost of direct-to-seller marketing in exchange for an assignment fee, but success in 2026 requires treating their numbers as raw data rather than facts. To filter out the "noise," you must ignore their projected ARVs and repair estimates—which are frequently underestimated to make a deal look better—and perform your own rigorous underwriting based on current labor costs and 2026 neighborhood comps. The most reliable wholesalers are those who have a direct contract with the seller rather than being part of a "daisy chain" of bird-dogs adding multiple fees; you can find these top-tier operators by tracking recent cash closings in your target zip codes and reaching out with proof of funds to secure their "pocket listings" before they hit a mass blast. Ultimately, wholesalers are worth the effort if you have the discipline to vet every deal yourself and the speed to close on the rare 1% that actually pencils out in a high-interest environment. I hope that helps.This is really helpful framing, especially the trust but verify part. I’m starting to realize how much of this game is just having solid underwriting on every deal no matter where it comes from, instead of assuming the numbers are already tight because someone else presented them.
The point about ignoring their ARV and repair estimates is something I probably needed to hear. I think as a beginner it's easy to anchor to the spreadsheet they send and not rebuild it from scratch using actual comps and current costs.
On wholesalers specifically, do you think it’s realistic for someone newer to build relationships with the better direct contract type wholesalers early on, or is that something that usually comes after a few closed deals and a track record? Also when you say tracking recent cash closings, are you pulling that from public records in your target zip codes and then reverse-engineering who’s moving deals?
Trying to understand what the fastest path is to actually getting access to those higher-quality off-market deals without wasting time on low-signal inventory.
- 4moJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Wholesale many times is done on props with tough titles in areas were the owners historically have not done proper vesting and or move on but never actually get a divorce or whats common and happened to us is they deed out to 10 kids .. And one of the kids never got notified of the sale or signed off.
Forged title is a tough one again this takes a dishonest wholesaler or property dude/dudet to do this knowingly and the wholesaler does not know they get caught up in it as well. But the point is wholesaler makes a 20k assignment fee and is down the road you never going to get one of these guys to pay the money back 99% of the time the money is spent.. There are wholesalers that have wherewithal but many live like most Americans pay check to pay check.. And they did not do it intentionally so that just ghost the title company now title company may refuse to ever work with them again though.
- Jay Hinrichs
- Podcast Guest on Show #222
JLH Capital Partners
0 Votes
- 4moJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
as a lender I have had bad guys record deeds of trust ahead of my loan by like 30 minutes and then try to claim first position of course I turn that over to my title company and they have to defend it and go after these bad guys.
I have also took over a book of 15 million of mortgages from a retiring HML who ( very long story) but they were all frauds and the guy who did it was a syndicator in SF bay area.. Title company paid out on all of these but it was very tramatic when the big boys from Miami and their lawyers came to my office and wanted to know how this happened.. I was the one who turned the guy in.. He got 9 years in San quention thats hard time. this investors in his syndication were all Portugese folks like him and went to same church etc. He knew these folks owned there homes free and clear. My predecessor who wrote all the loans was also invested in this guys syndications. So he trusted him and the guy stole his secretaries notary stamp And forged all those deeds of trust and then had Jack ( owner of company) wire the proceeds to him directly stating these people were doing helocs to invest in his apartment deals in Dallas that subsequently all went into foreclosure like your seeing today with today's syndicators. this was 1990.. The investors in all these private mortgages got paid out but they wanted their interest so they were yelling at me and the title company is NOPE principal only as fraud is a covered item in Lenders policy. So CA then moved to mandate thumb prints on notaries books after that and other high profile frauds.
This is why in RE experience is hard earned and 95% of folks have no clue how the back end and how title and escrow actually work they just hand a contract to a closer and trust them to say everything is fine.
- Investor · St. Petersburg, FL · Member since 2026 · 83 posts · 49 votes4mo
Quote from @Jay Hinrichs:
as a lender I have had bad guys record deeds of trust ahead of my loan by like 30 minutes and then try to claim first position of course I turn that over to my title company and they have to defend it and go after these bad guys.
I have also took over a book of 15 million of mortgages from a retiring HML who ( very long story) but they were all frauds and the guy who did it was a syndicator in SF bay area.. Title company paid out on all of these but it was very tramatic when the big boys from Miami and their lawyers came to my office and wanted to know how this happened.. I was the one who turned the guy in.. He got 9 years in San quention thats hard time. this investors in his syndication were all Portugese folks like him and went to same church etc. He knew these folks owned there homes free and clear. My predecessor who wrote all the loans was also invested in this guys syndications. So he trusted him and the guy stole his secretaries notary stamp And forged all those deeds of trust and then had Jack ( owner of company) wire the proceeds to him directly stating these people were doing helocs to invest in his apartment deals in Dallas that subsequently all went into foreclosure like your seeing today with today's syndicators. this was 1990.. The investors in all these private mortgages got paid out but they wanted their interest so they were yelling at me and the title company is NOPE principal only as fraud is a covered item in Lenders policy. So CA then moved to mandate thumb prints on notaries books after that and other high profile frauds.
This is why in RE experience is hard earned and 95% of folks have no clue how the back end and how title and escrow actually work they just hand a contract to a closer and trust them to say everything is fine.
That’s a wild story, but it’s actually a really useful reminder of something most beginners completely overlook: real estate isn’t just numbers and comps, it’s a legal and title system first, and the money sits on top of that.
A few things I’m taking from what you shared:
The idea that someone can try to race a deed recording and create priority issues is something I honestly didn’t even know was possible at a practical level. I assumed recording was just clean and orderly, but it sounds like timing + fraud + sloppy controls can create real chaos.
Also the level of trust abuse you described (forged notary stamp, internal wiring instructions, relationship-based syndication fraud) is way beyond what I've been thinking about when I look at deals. I've mostly been focused on BRRRR vs flips, but this is more like who controls the paper and verification layer than anything else.
It makes me wonder for today’s investing environment:
- How much of this risk is still relevant for smaller investors doing BRRRR or flips under $500k–$1M?
- Is modern title insurance basically strong enough that the main risk becomes inconvenience/slow resolution, or are there still real exposure points beginners should understand?
- And from your perspective as a lender, what are the early warning signs in a deal or counterparty that something might be off before it ever gets to closing?
Appreciate you sharing that context — it definitely adds a layer I wasn’t thinking about at all.
- Investor · Fort Washington, MD · Member since 2014 · 1k+ posts · 1k+ votes4mo
Quote from @Korey Ralston:
I’ve been going back and forth on this and wanted to get some real-world input from people actually doing deals.
On one hand, wholesalers seem like a great way to get access to off-market deals without having to build a full marketing machine yourself. It feels like a faster way to get in the game, especially starting out.
On the other hand, I’ve heard a lot of mixed opinions—deals being marked up too much, numbers not penciling out, or just getting blasted on massive buyers lists with the same property.
For those of you who have experience:
1. Do you actively work with wholesalers, or do you prefer to source deals yourself?
2. If you do use them, how do you filter out the good ones from the ones just pushing bad deals?
3. Have you actually closed solid deals through wholesalers that met your criteria?
And if you’ve had good experiences, would you recommend any specific wholesalers or how to go about finding reliable ones in a market?
Trying to figure out if this is a path worth leaning into or something to be cautious with. Appreciate any insight
The answer to your question is simple; get a good wholesaler.
1. I have worked with them before, and some have good deals, but many have sht. The problem is, so many untrained newbies don't know a good deal, so they take anything. This drives up what wholesalers are charging. If they can get more, they take more.
2. I filter out the good ones from the bad ones through the deal. If they numbers are right, we continue. If not, be gone.
3. Yes, many of my deals came through wholesalers. Many who I have dealt with have not continued for years and years. Also, there were many great deals back in the day when even basic idiot wholesalers could make money. Many of those deals are gone. I have no one to recommend.
- Investor · St. Petersburg, FL · Member since 2026 · 83 posts · 49 votes4mo
Quote from @Mark Cruse:
Quote from @Korey Ralston:
I’ve been going back and forth on this and wanted to get some real-world input from people actually doing deals.
On one hand, wholesalers seem like a great way to get access to off-market deals without having to build a full marketing machine yourself. It feels like a faster way to get in the game, especially starting out.
On the other hand, I’ve heard a lot of mixed opinions—deals being marked up too much, numbers not penciling out, or just getting blasted on massive buyers lists with the same property.
For those of you who have experience:
1. Do you actively work with wholesalers, or do you prefer to source deals yourself?
2. If you do use them, how do you filter out the good ones from the ones just pushing bad deals?
3. Have you actually closed solid deals through wholesalers that met your criteria?
And if you’ve had good experiences, would you recommend any specific wholesalers or how to go about finding reliable ones in a market?
Trying to figure out if this is a path worth leaning into or something to be cautious with. Appreciate any insight
The answer to your question is simple; get a good wholesaler.
1. I have worked with them before, and some have good deals, but many have sht. The problem is, so many untrained newbies don't know a good deal, so they take anything. This drives up what wholesalers are charging. If they can get more, they take more.
2. I filter out the good ones from the bad ones through the deal. If they numbers are right, we continue. If not, be gone.
3. Yes, many of my deals came through wholesalers. Many who I have dealt with have not continued for years and years. Also, there were many great deals back in the day when even basic idiot wholesalers could make money. Many of those deals are gone. I have no one to recommend.
That makes sense, especially the idea that the wholesaler quality is basically revealed through the deal itself rather than their reputation or pitch. I’ve been realizing more that in this business, the numbers are the filter—not the relationship or presentation.
The point about newer investors unknowingly accepting bad deals also hits. I can see how that would slowly raise assignment fees and still leave inexperienced buyers thinking they’re in the game, when really they’re just overpaying for access.
When you say you filter them purely through the deal, do you usually re-underwrite everything from scratch right away, or do you have a quick first-pass checklist you run before spending time digging deeper?
Also curious from your perspective—what separates a dead-on-arrival wholesale deal from one that’s actually worth the time to analyze seriously? I’m trying to build better instincts for filtering faster instead of spending hours on deals that were never viable to begin with.
- 4moPatrick DruryBusiness MemberReal Estate Agent · Columbus, OH & Cleveland OH · Member since 2021 · 1k+ posts · 2k+ votes
@Korey Ralston
Wholesalers can have good opportunities, but when working with them, you need to be able to discern when something doesn't make sense numbers-wise or if things aren't adding up since the wholesaler isn't an agent representing you. The higher the price they can sell it for the more money they make as the spread. Wholesale deals are best for investors who have a couple of deals under their belt and have done a couple of rehabs. I don't think wholesale deals are ideal for someone brand new to real estate, just starting out.
When I say things not adding up I mean stuff like this:
-Property is tenant-occupied, and they are saying it will be delivered vacant at closing in 14 days
-----> yeah, that almost never is the case
-Owner-occupied property packed to the brim by a pack rat and they are claiming it will be fully cleaned out by closing.
-----> yeah, that almost never is the case- Investor · St. Petersburg, FL · Member since 2026 · 83 posts · 49 votes4mo
Quote from @Patrick Drury:
@Korey Ralston
Wholesalers can have good opportunities, but when working with them, you need to be able to discern when something doesn't make sense numbers-wise or if things aren't adding up since the wholesaler isn't an agent representing you. The higher the price they can sell it for the more money they make as the spread. Wholesale deals are best for investors who have a couple of deals under their belt and have done a couple of rehabs. I don't think wholesale deals are ideal for someone brand new to real estate, just starting out.
When I say things not adding up I mean stuff like this:
-Property is tenant-occupied, and they are saying it will be delivered vacant at closing in 14 days
-----> yeah, that almost never is the case
-Owner-occupied property packed to the brim by a pack rat and they are claiming it will be fully cleaned out by closing.
-----> yeah, that almost never is the caseThat actually helps clarify a lot. I think I was starting to assume wholesalers were just another deal source, but it sounds more like they’re a filtered marketplace where the burden is still on the investor to validate everything independently.
The examples you gave are really practical too. The delivered vacant in 14 days and pack rat clean-out by closing scenarios are exactly the kind of things I wouldn’t have flagged as red flags early on, but I can see now how those assumptions can completely blow up timelines and holding costs if they don’t go as promised.
It also makes sense what you said about experience level. I think I was trying to shortcut into wholesale deals before I even have a baseline understanding of rehab timelines and real carrying costs. Probably backwards.
From your experience, what would you consider a safer entry point for a beginner—direct MLS deals, small BRRRRs, or even just partnering on a first deal—before leaning heavily into wholesaler inventory?
- Member since 2026 · 3 posts · 1 vote4mo
Hi Korey.I am a new investor looking to do my first fix & flip.would love to connect and learn from you experience
- Member since 2026 · 1 post · 0 votes4mo
Hi Korey, great question. I'm a wholesaler in the Georgia market and I focus on bringing solid deals that make sense to the investor. If you're open to connecting, I'd love connecting to see what your buyer criteria looks like.
- Real Estate Agent · Nashville, TN · Member since 2026 · 12 posts · 9 votes4mo
Agent in Nashville, work primarily with investors. I've had clients bring me wholesale deals plenty of times, and I've watched them go direct on assignments too.
The numbers on a wholesale deal sheet are marketing materials. They're not comps. The ARV is whatever the wholesaler thinks will move the deal, and the repair estimate is whatever makes the spread look tolerable. I tell my investor clients to treat it like a flyer you'd get in the mailbox.
When a client brings me one, first thing I do is pull actual closed comps from the MLS within the last 90 days. Not active listings, not Zestimates, closed sales in the same condition band. Half the time the ARV the wholesaler quoted is 15-20% higher than what I'm seeing in closed data. That alone kills most of these deals before we even get to rehab scope.
The title issue Jay brought up is real and I've seen it play out. Had a client almost close on an assignment last year where there was a judgment lien the wholesaler either didn't know about or didn't disclose. If that client had gone cash with no title work he'd own the lien now. Always close through a title company, and make sure the policy covers your full purchase price including the assignment fee, not just the underlying contract amount.
The other thing that bites people is lender friction. If your buyer is using financing, a lot of lenders won't touch an assignment contract without extra documentation. DSCR shops especially want clean chain of title and a standard purchase agreement. I've had deals where the lender saw the assignment and tacked on two weeks to underwriting while they sorted it out.
Wholesalers aren't the problem. I've seen great deals come through that channel. But every time it worked out, the buyer had already done their own underwriting before they committed to anything.
- Investor · St. Petersburg, FL · Member since 2026 · 83 posts · 49 votes4mo
Quote from @Derek Hollis:
Agent in Nashville, work primarily with investors. I've had clients bring me wholesale deals plenty of times, and I've watched them go direct on assignments too.
The numbers on a wholesale deal sheet are marketing materials. They're not comps. The ARV is whatever the wholesaler thinks will move the deal, and the repair estimate is whatever makes the spread look tolerable. I tell my investor clients to treat it like a flyer you'd get in the mailbox.
When a client brings me one, first thing I do is pull actual closed comps from the MLS within the last 90 days. Not active listings, not Zestimates, closed sales in the same condition band. Half the time the ARV the wholesaler quoted is 15-20% higher than what I'm seeing in closed data. That alone kills most of these deals before we even get to rehab scope.
The title issue Jay brought up is real and I've seen it play out. Had a client almost close on an assignment last year where there was a judgment lien the wholesaler either didn't know about or didn't disclose. If that client had gone cash with no title work he'd own the lien now. Always close through a title company, and make sure the policy covers your full purchase price including the assignment fee, not just the underlying contract amount.
The other thing that bites people is lender friction. If your buyer is using financing, a lot of lenders won't touch an assignment contract without extra documentation. DSCR shops especially want clean chain of title and a standard purchase agreement. I've had deals where the lender saw the assignment and tacked on two weeks to underwriting while they sorted it out.
Wholesalers aren't the problem. I've seen great deals come through that channel. But every time it worked out, the buyer had already done their own underwriting before they committed to anything.
This is really helpful context, especially coming from the agent side who actually sees these deals hit the MLS and financing stage.
The part about treating the wholesaler sheet as marketing instead of data is starting to be a recurring theme, and I think that's the mental shift I needed. I've definitely been guilty of anchoring too much on their ARV and repair numbers instead of rebuilding everything from closed comps like you're describing.
The title and lien risk example is honestly something I hadn’t fully appreciated either. I assumed title insurance just “handled it,” but it sounds like the real risk is more about delays, exceptions, and getting caught in edge cases where you still have capital tied up or a messy resolution.
The lender friction point is also interesting. I wouldn't have thought an assignment structure alone could slow underwriting that much, but it makes sense if DSCR lenders are trying to standardize risk and paperwork flow.
A couple questions I’m trying to calibrate myself on:
- When you say closed comps in the same condition band, how granular do you get on that—are you basically separating cosmetic vs full gut vs partial rehab, or do you keep it more high-level?
- And from what you see in Nashville (or similar investor-heavy markets), do good wholesale deals still exist at scale, or is it more like occasional pockets that only experienced investors consistently catch?
I’m trying to figure out how much of this is about finding better deals vs just becoming better at filtering the same inventory everyone else sees.
- 4moMatthew MorrowBusiness MemberInvestor · PA - NY - NJ · Member since 2019 · 458 posts · 168 votes
Quote from @Derek Hollis:
Agent in Nashville, work primarily with investors. I've had clients bring me wholesale deals plenty of times, and I've watched them go direct on assignments too.
The numbers on a wholesale deal sheet are marketing materials. They're not comps. The ARV is whatever the wholesaler thinks will move the deal, and the repair estimate is whatever makes the spread look tolerable. I tell my investor clients to treat it like a flyer you'd get in the mailbox.
When a client brings me one, first thing I do is pull actual closed comps from the MLS within the last 90 days. Not active listings, not Zestimates, closed sales in the same condition band. Half the time the ARV the wholesaler quoted is 15-20% higher than what I'm seeing in closed data. That alone kills most of these deals before we even get to rehab scope.
The title issue Jay brought up is real and I've seen it play out. Had a client almost close on an assignment last year where there was a judgment lien the wholesaler either didn't know about or didn't disclose. If that client had gone cash with no title work he'd own the lien now. Always close through a title company, and make sure the policy covers your full purchase price including the assignment fee, not just the underlying contract amount.
The other thing that bites people is lender friction. If your buyer is using financing, a lot of lenders won't touch an assignment contract without extra documentation. DSCR shops especially want clean chain of title and a standard purchase agreement. I've had deals where the lender saw the assignment and tacked on two weeks to underwriting while they sorted it out.
Wholesalers aren't the problem. I've seen great deals come through that channel. But every time it worked out, the buyer had already done their own underwriting before they committed to anything.
Spot on. Trust but verify- always. Their rehab numbers are typically low and ARV is high. Some of our really good deals have been sourced by solid wholesale teams, and also some of the worst.
CORE Team | Realty ONE Group Supreme547 Reviews
- Cincinnati, OH · Member since 2020 · 4k+ posts · 3k+ votes4mo
I know I am late to the game. I don't flat out avoid them, but they often provide very little value.
As noted, YOU need to know your numbers. I would imagine most people that say to avoid them see what I see: a vast majority of "wholesalers" don't know the first thing about the markets they are buying in, rehab costs, etc. And there are only really three or four numbers that matter in REI: purchase price, rehab cost, ARV and rent amount.
Second, I am generally skeptical in overall, because these deals are not "off market". True, they may not be listed on the MLS, but market is the root word for marketing/marketed because they are the same thing. If you are getting an email blast from a wholesaler, that deal is being marketed to you. The only one getting an "off market" deal is the wholesaler because they went straight to seller. I know this is semantics, but it matters.Third, to Jay's point, ALWAYS, buy title insurance. Granted, I do this for all properties regardless of source. In the roughly 2 dozen transactions I have bought, I have used my title insurance 3 times.
Lastly, be careful about the contract you are signing. Again, this is true on all deals. Understand it, make sure you are comfortable with the risks you are taking on. I bring this up specifically in this thread, because a lot of more seasoned wholesalers will have their own contracts that differ from the your standard Board of Realtors contract.
At the end of the day, if you are starting out, I would say it is probably worth being on their lists. Know that any deal you see is one that the wholesaler chose not to take on themselves and didn't find a buyer for within their "preferred buyer" pool, so you are only seeing deals that have likely been passed on by two other groups. That doesn't mean they are bad, they are just not the home run you might think it is. But, if you run your numbers and it makes sense, there is nothing necessarily wrong with it.
- Investor · St. Petersburg, FL · Member since 2026 · 83 posts · 49 votes4mo
Quote from @Evan Polaski:
I know I am late to the game. I don't flat out avoid them, but they often provide very little value.
As noted, YOU need to know your numbers. I would imagine most people that say to avoid them see what I see: a vast majority of "wholesalers" don't know the first thing about the markets they are buying in, rehab costs, etc. And there are only really three or four numbers that matter in REI: purchase price, rehab cost, ARV and rent amount.
Second, I am generally skeptical in overall, because these deals are not "off market". True, they may not be listed on the MLS, but market is the root word for marketing/marketed because they are the same thing. If you are getting an email blast from a wholesaler, that deal is being marketed to you. The only one getting an "off market" deal is the wholesaler because they went straight to seller. I know this is semantics, but it matters.Third, to Jay's point, ALWAYS, buy title insurance. Granted, I do this for all properties regardless of source. In the roughly 2 dozen transactions I have bought, I have used my title insurance 3 times.
Lastly, be careful about the contract you are signing. Again, this is true on all deals. Understand it, make sure you are comfortable with the risks you are taking on. I bring this up specifically in this thread, because a lot of more seasoned wholesalers will have their own contracts that differ from the your standard Board of Realtors contract.
At the end of the day, if you are starting out, I would say it is probably worth being on their lists. Know that any deal you see is one that the wholesaler chose not to take on themselves and didn't find a buyer for within their "preferred buyer" pool, so you are only seeing deals that have likely been passed on by two other groups. That doesn't mean they are bad, they are just not the home run you might think it is. But, if you run your numbers and it makes sense, there is nothing necessarily wrong with it.
This is actually one of the most balanced takes I’ve heard on it. The biggest takeaway for me is that wholesaling isn’t really a deal source advantage — it’s just another layer of marketing on top of the same underlying market data. That reframing helps a lot.
The point about only a few numbers really mattering (purchase, rehab, ARV, rent) is something I keep hearing from experienced investors, and I'm starting to realize how easy it is for beginners to get distracted by everything around those four inputs instead of getting brutally good at estimating them.
The not really off-market, just differently marketed explanation also makes sense. I hadn’t thought about it that way, but it changes how I should mentally categorize these deals. It’s less hidden opportunity and more pre-filtered inventory with an added fee layer.
Quick questions I’m trying to calibrate on as I learn this:
- When you personally underwrite a deal, how conservative are you on each of those four numbers (price, rehab, ARV, rent)? Do you build a fixed buffer, or does it depend heavily on property type/neighborhood?
- And when you’ve had to use title insurance those few times, was it usually fraud/ownership issues, or more lien/clerical-type surprises?
Also appreciate the broader perspective here — it’s helpful hearing how experienced investors think about wholesalers without the hype or the outright dismissal. It feels more like use them if the math works, ignore the narrative, which is probably where I need to be mentally right now.
- 4moPatrick DruryBusiness MemberReal Estate Agent · Columbus, OH & Cleveland OH · Member since 2021 · 1k+ posts · 2k+ votes
@Korey Ralston
To be honest, your first deal is going to be your worst deal. I think too many people get caught up trying to time the market and hit a grand slam out of the park that they miss completely good opportunities in front of them.
To answer your question for your first deal, I would buy a house hack if you are able to, and maybe do some of the cosmetic rehab yourself and then sub out the capex related items like -Plumbing, Electrical, HVAC and and roofing if needed. This won't be a great BRRRR but a good way to get more familiar with rehab costs, a way to find subs needed, and try them out without having to worry about a hard money loan with a tight deadline. - Cincinnati, OH · Member since 2020 · 4k+ posts · 3k+ votes4mo
In today's market, unfortunately, it feels like you can't be too conservative on any of the numbers, because you simply won't buy anything. I primarily am doing pure flips these days, so rent isn't much of a factor, but the biggest variable is ARV. I tend to know my rehab numbers pretty well, although every project seems to get more and more expensive. Purchase price is the only controllable variable. So ARV just takes a good amount of market knowledge to truly factor in.
As for buffers, again, they come in two forms, Buffer rehab costs. I won't say I "buffer" these, but I have extra capital available as needed to make sure I can get through issues. Additionally, I can normally value engineer finishes, which can help make up for overruns on items like roof or HVAC or anywhere that costs start climbing. And for ARVs, I just need a healthy margin overall, which again is buffer. No, I don't want to make less money, but if I anticipate having a $100k profit, costs go up $30k and ARV ends up $25k below anticipated, I still made money. But, on ARVs I will take actual sales, but typically look at ones that are not as updated, or maybe were updated 10-15 yrs ago. If I can sell at that price, and make money then I know I have more potential when my rehab is done.Title issues: I didn't have any that resulted in me giving back a house (not sure if that is even a possibility). The one that most stands out was a property that I bought from the foreclosing bank. While we were mid rehab, we get notice that another bank had a mortgage recorded, that didn't get handled in the initial foreclosure. Owner had refi'd a pool of properties together and stated no mortgages, bank apparently didn't check. But also, the initial mortgage was held by a bank that went under in Financial Crisis and assets got sold to another bank, so lots of hair on it. Ultimately, title insurance settled the claim with that initial bank. It did slow down our sale, but happy we had it. And once we made the claim, things were fairly smooth. It was stressful only because we were trying not to lose our buyer.
- Investor · St. Petersburg, FL · Member since 2026 · 83 posts · 49 votes4mo
Quote from @Evan Polaski:
In today's market, unfortunately, it feels like you can't be too conservative on any of the numbers, because you simply won't buy anything. I primarily am doing pure flips these days, so rent isn't much of a factor, but the biggest variable is ARV. I tend to know my rehab numbers pretty well, although every project seems to get more and more expensive. Purchase price is the only controllable variable. So ARV just takes a good amount of market knowledge to truly factor in.
As for buffers, again, they come in two forms, Buffer rehab costs. I won't say I "buffer" these, but I have extra capital available as needed to make sure I can get through issues. Additionally, I can normally value engineer finishes, which can help make up for overruns on items like roof or HVAC or anywhere that costs start climbing. And for ARVs, I just need a healthy margin overall, which again is buffer. No, I don't want to make less money, but if I anticipate having a $100k profit, costs go up $30k and ARV ends up $25k below anticipated, I still made money. But, on ARVs I will take actual sales, but typically look at ones that are not as updated, or maybe were updated 10-15 yrs ago. If I can sell at that price, and make money then I know I have more potential when my rehab is done.Title issues: I didn't have any that resulted in me giving back a house (not sure if that is even a possibility). The one that most stands out was a property that I bought from the foreclosing bank. While we were mid rehab, we get notice that another bank had a mortgage recorded, that didn't get handled in the initial foreclosure. Owner had refi'd a pool of properties together and stated no mortgages, bank apparently didn't check. But also, the initial mortgage was held by a bank that went under in Financial Crisis and assets got sold to another bank, so lots of hair on it. Ultimately, title insurance settled the claim with that initial bank. It did slow down our sale, but happy we had it. And once we made the claim, things were fairly smooth. It was stressful only because we were trying not to lose our buyer.
Really appreciate you sharing all of that. I'm still pretty new to investing, so hearing how you think through deals is super helpful. The way you explained ARV and using more conservative comps makes a lot of sense to me. I hadn't really thought about looking at older or less updated sales as a way to build in a safety margin.
Also interesting to hear how you think about buffers. I always assumed it was just adding extra numbers into the rehab budget, but having access to additional capital and being able to adjust finishes/materials along the way seems just as important.
That title issue story is honestly a little scary, but also a good lesson on why title insurance matters. As someone newer to this, I probably wouldn’t even think something like that could happen after closing. Glad it worked out and you didn’t lose the buyer. Definitely learned a few things from your post.
- Lender · Tampa, FL · Member since 2013 · 2k+ posts · 2k+ votes4mo
They are like anything else...some are good, some are bad. We've worked with a handful of wholesalers in the Tampa Bay area (we're here too) and had some luck. I find you don't get accurate ARVs or rehab estimates, so you have to do your own due diligence. They also often don't leave much meat on the bone, so we don't buy from them that often anymore, but it doesn't hurt to look at deals they send just in case.
- Real Estate Agent · Member since 2021 · 62 posts · 15 votes4mo
Hey Korey, Wholesaler and investor here myself. I work with a bunch of wholesalers daily here in Tampa doing deals, and every house I've bought has been from a wholesaler. Its just like Realtors, most dont know what they are doing but the few who do are great. I think the deals are typically much better than MLS but just run your own numbers and have your contractor confirm the rehab. I can help you find deals if you are looking
- 4moJorge VazquezBusiness MemberReal Estate Broker · Tampa, FL · Member since 2017 · 1k+ posts · 685 votes
Korey, honestly, wholesalers can be great if you find the right ones. I’ve been investing for about 25 years and people underestimate how hard direct acquisitions really are. Everybody likes the idea of cutting out wholesalers, but building a real acquisitions machine takes serious money, systems, and patience. It’s a numbers game.
My advice is simple: trust the deal, not the person. Always underwrite it yourself. Walk the property, have a handyman or GC confirm repairs, and let a good title company look at title before closing. A good property management company can help a lot too because they’ll tell you the real story on rents, rehab expectations, and tenant demand.
There are definitely bad wholesalers out there blasting junk deals, but there are also really good ones that can save you a ton of time and help you scale faster.
Graystone Investment Group4.6271 Reviews - Specialist · Goa, India · Member since 2026 · 175 posts · 36 votes4mo
Both sides of this debate make valid points — but there's a variable that applies to either approach that doesn't get talked about enough: what happens the moment a deal lands in your inbox.
With wholesalers specifically, the best deals on a large buyers list go to whoever responds first and signals they can close. The investor with the fastest, clearest response wins — not necessarily the one with the deepest pockets or the longest relationship.
Self-sourcing has the same dynamic on the seller side. A motivated seller who reaches out and doesn't hear back quickly starts questioning whether you're serious.
The sourcing debate matters, but the operators I've seen close consistently have solved the response side first — regardless of which channel the deal came through.
@Korey Ralston — of the deals you've come close to closing so far, did response speed ever end up being a factor in whether it moved forward or fell apart?
- San Jose, CA · Member since 2026 · 13 posts · 1 vote3mo
wholesale deals usually come with way less time for inspections and they won't fix anything. just factor that into your numbers upfront.
- Virtual Assistant · Member since 2026 · 54 posts · 20 votes3mo
Quote from @Korey Ralston:
I’ve been going back and forth on this and wanted to get some real-world input from people actually doing deals.
On one hand, wholesalers seem like a great way to get access to off-market deals without having to build a full marketing machine yourself. It feels like a faster way to get in the game, especially starting out.
On the other hand, I’ve heard a lot of mixed opinions—deals being marked up too much, numbers not penciling out, or just getting blasted on massive buyers lists with the same property.
For those of you who have experience:
1. Do you actively work with wholesalers, or do you prefer to source deals yourself?
2. If you do use them, how do you filter out the good ones from the ones just pushing bad deals?
3. Have you actually closed solid deals through wholesalers that met your criteria?
And if you’ve had good experiences, would you recommend any specific wholesalers or how to go about finding reliable ones in a market?
Trying to figure out if this is a path worth leaning into or something to be cautious with. Appreciate any insight
I’ve seen both sides of this play out in real deals.
Wholesalers are definitely useful when they actually control quality on the acquisition side. The issue usually isn’t wholesalers themselves — it’s lack of filtering, pricing discipline, and buyer alignment before the deal gets blasted out.
From a buyer perspective, the good ones stand out fast because:
they already know their buyer’s criteria
they send fewer, more targeted deals
and they’re transparent on numbers instead of overselling
Personally, I work with wholesalers who already have active deal flow and just need strong end buyers ready to move quickly.
If anyone is consistently sourcing deals and wants a reliable buyer/dispo connection, feel free to reach out.
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