Why do so many Wholesalers have such a problem running numbers?
Lately, I have been noticing a trend. Wholesalers have been sending me deals with ARVs too high, rehab estimats too low, and they aren't calculating closing costs, holding costs, or profit spreads (let alone extras, like hard money costs).
Obviously, this isn't a new problem, but it's more consistent than I remember. Is there a new "guru" in town teaching bad math? Should I dump these Wholesalers and try to find new ones for my area or is there something else going on?
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I feel like it's always been like this, but I've sensed an uptick as well. I help guys dispo deals, and I kick back over 90% of them as I will not have egg on my face pushing out a bad deal to my premium buyers list. At this point, I just assume if a wholesaler sends me a deal to JV that their numbers are off. Most of them do not want to have the difficult conversations with sellers in negotiations and do not realize how difficult it is to get a seller to commit to selling their home for 50% of ARV. They tend to be desperate to get a "yes" from a seller and hope that they'll find a sucker of a buyer.
Simply put, people just don't want to put in the work these days to become professionals at their craft. It gives all wholesalers such a bad name, especially the ones who are exceptional at what they do.