Quote from @Jay Hinrichs:
Quote from @Don Konipol:
Quote from @Account Closed:
Stupid wholesalers doesn't begin to describe them. I get messages addressed to my ex wife (divorced over 18 years ago) for my first home, and for properties I sold a year ago. Even in the Bay Area where I can sell my home for multiple offers in cash in one week I get clueless wholesalers offering to "solve my problem". For my Indiana properties its an endless barrage of texts (and since I live in a different time zone they come at all hours of the night) and I have to silence my phone at night to avoid this nonsense. Add to that a basically exploitative model based on stealing equity from uneducated or elderly sellers I would argue this whole business model needs to made illegal with no ambiguity. It actually IS illegal in most places but the presence of this forum proves that enforcement is lacking.
While I understand where you’re coming from, as I too am fed up with the endless mass texts, I think that we need to consider that in a limited set of circumstances, wholesalers do provide a valuable service to both sellers and buyers.
These circumstances center around property that’s so low priced, needs so much work, so unattractive to home buyers, or so undesirable a location, that COMPETENT realtors are not interested in listing the property, oR acknowledge that an offer is not likely in a reasonable period of time. The other circumstance would be one in which a seller needs to sell within a relatively short time frame.
Beyond that, there is an argument which is based on the fact that allowing the market to determine need through success or failure will ultimately lead to the best results.
Don, you hit the nail on the head with this post.. As you know or maybe know my niche is in funding low value assets in 7 mid west and upper mid west markets.. My model is different I dont put mortgages on any of these 250 deals a year I fund our fund takes title. So we are prime time on the call lists. And by prime time I mean the main criteria is Out of State owners NO DEBT or owned it many years. So for us NO debt and out of state you can Imagine all the solicitations I get.. There are wholesalers attached to probably 50% of what I fund there are a few companies that are constant repeats in certain markets . and one in particular wanted to sell his wholesale business and what I could determine the owner was making net net net between 300 to 500k a year with multi millions in fixed overhead to get to that number... the rest are a constant revolving door of new names.
The wholesalers text or telemarket they use Philippine call centers not Indian or Bangladesh . They read from a script every one of the callers reads the same script.. and then they will send the info to their acquisitions manager so usually on these calls your 2 to 3 layers removed from the owner.. But I flip the script on them I want to get to the owner to see if I can help them build their business by whole-tailing I have gotten a few of my best clients this way.. its funny they call me and I end up turning them into REAL owners and investors.
I think the main disservice that is promulgated is the folks that buy this dream and spend what little capital they have on this model only to spend it all and then were are they. Its a tough gig it really is. Its a sales and marketing job and so many people just are not cut out for it.
The other issues is those that buy from contract assignors take on some risk they probably have no clue in the event of a title defect or title claim.. the title insurance is only written at the original contract purchase price. So lets say your friendly local wholesalers snags a deal for 20k and sells it to you the end buyer for 60k your only getting 20k in title insurance.. now lets say there is a title claim and the title company pays .. well you just are going to get your 20k and you lost 40k and have an unmarketable title.. Title company will spend no effort trying to clean up your title they will just pay out the claim.. Does it happen often no but it does happen, And again things that 99% of buyers have no clue about until after the fact.
Gurus selling these course ( the top ones) they make millions there is no doubt I have been a Vendor at these events over the last 2 decades although the FTC and State AG's are really starting to crack down on them think Nudge or Zxirix in Utah and there massive machine..Lastly my issue at least in my home state of Oregon is its just illegal to market properties you don't own and there is no equitable interest as described in that state.. Other states they could give a rip about wholesaling and other states are now finally passing legislation to at least give some consumer protection. We all know that wholesalers solve very few problems a good realtor could not solve and better. And that the wholesalers fee's ( i see them ) take equity from the seller many times when the fee is a large portion of the purchase price.
Look,
This is how mathematics works.
Proof theory.
In order to prove anything, it is useless to list a million examples showing what you are claiming to be true. All I would have to do is list ONE occurrence that shows your claims don't hold.
Example.
If you want to claim all apples are red, you can't prove this by showing 3 billion red apples, right?
All I have to do is show you ONE green apple and that alone proves you wrong.
Yes a lot of people use wholesaling mentorships and make a fortune doing so. No, that is not wholesaling and that is not what is meant when it is said that wholesalers can make $500K.
ALL I have to do is show ONE wholesaler that DOES make money and that this system is sustainable to prove all the haters wrong.
Now I will not list anyone that is making a ton of money, but I will still logically prove I am correct.
Focus, pay attention!
Do you think I would have trouble wholesaling a house I bought for 10 dollars, for a $100K wholesaling fee, when the ARV is $250K while needing $60K in repairs?
Yes any day - every day.
So IFFF I get 4 to 12 of these kind of deals/leads every day, heck even a week, I would only need to make 10 of such deals a year to make $1M in revenue.
So far this is fact, logic common sense , math, TRUTH! Right?
Great. Now look at my leads.
Or
Keep in mind that these leads are ridiculously motivated. I mean SO motivated they are willing to slel their $183K house for $11K!
Do you think it is really that hard to see that it is ABSOLUTELY possible to make $1M/year in revenue with these numbers?
In fact it is not only possible,
it is inevitable!
"OK so you will say, yeah but you are so good looking, sexy smart and you have god-like lead generation powers. Of course YOU do this.."To which I say..
EXACTLY!!! THAT is my point.As long as you are good at lead generation you ABSOLUTELY CAN do this.
It is sustainable doable as long as you do it right.
Now, the reason why so many of you fail, is because you are stubborn, deviant, haters, lazy!
I have been showing off my results for YEARS! Trying to educate you all, teach you, guide you, show you. But what do you all see? You see ego, showing off. That is on YOU! Not me.
If I don't show proof, you think I am full of it. If I do show proof, either YOU don't believe it or you are so resentful you rather call me a scammer than acknowledge "he does have a point".
The reason so many of you fail is because you are driving for dollars, door knocking, text messaging, bandit signs, DDM, yellow letters, post cards, to the probate list, tax lien lists foreclosure list etc. etc.
Tell me this, smart person... what is the success rate of these strategies? Meaning, how many calls do you need to make, mailers you need to sent, texts you need to blast to get just one deal? 1000? 2000? 3000? 10,000?
Your success rate is less than 3%. You are reliying on strategies with a less than 3% success rate to become successful.
Do you REALLY DARE telling me this is not true? No YOU CAN'T!!
OK then why are you doing these stupid strategies KNOWING the success rate is so low?
Do you still dare call yourself smart.. savvy? Not to me you're not!
DUDES.. Read my lips... I provide SO MUCH gaadamn evidence y'all are doing it wrong but all you see is what you want to see... its ridiculous!
So, the reason NONE of you can see or comprehend this is because of this:
1). You all are SO set in your ways, YOUR ways, you can't possibly even begin to comprehend there is something else out there further than what your eyes can see. One of you made a comment in a previous post that none of your deals have been from anyone on the computer. .. That exactly proves my point. If NONE of your deals came from anything involving internet, you pretty much are going out of your way to avoid internet.. because pretty much EVERYONE will resort to internet the second they need... well.. anything!
2). You draw the wrong conclusions because you are looking at the wrong data. Let me explain. You simply are convinced wholesaling is wrong, illegal bla bla bla, and you are convinced all wholesalers are lazy scumbags that don't care about anything else than to make your lives miserable. This idea is CARVED in stone in your head and there is no deviating from this to you.
No, wholesaling is a strategy... including a double close.
Wholesaling will NEVER be illegal as long as you do a double close. Buy the property (doesn't have to be with your money), and then sell that property. THAT TOO IS WHOLESALING!!
So please you all need to stop seeing red. Stop using emotions to prove a point (that doesn't exist) and look at data, facts numbers.
ANYONE claiming that wholesaling is not sustainable you need to consider this. If I can just show ONE person that has made it sustainable, it would be enough to end this discussion.. in your defeat!
