Is anyone aware of a site or source that one can review to see the results of those investors engaged in wholesale activities? In the short time I've engaged in trying to obtain properties from Wholesalers, it has become painfully apparent that many, if not most, inflate ARVs, deflate rehab costs, and present very unrealistic deals to investors. Are there places these folks can show "see, I offered it at these terms and this investor purchased and the results are this --".
Am I too naive to hope for such disclosure?
@David Begley , kind of like AngiesList for wholesalers? That would be nice.
I think personal recommendations/referrals from others in that market is going to be your best bet.
Unfortunately most wholesalers suck and only try to push crappy deals so that they can make a few bucks at your expense......however with that said there are some good ones out there, but it takes time to figure out who they are and to work your way into the rotation on their buyers lists. I would reccomend asking around in your area to find out who the real players are when it comes to wholesaling solid deals that make money.
The biggest reason why my company has been so successful wholesaling is because our buyers ALWAYS make money on the houses we sell them. If I am off on my numbers I will make it up to them on the next deal......nobody else in my market cares nearly that much about the end result, which is why we have people calling us every day trying to get into the buying rotation. Just start looking around and asking other investors and you should find the guys in your area who opperate in a similar fashion to how my company does things.....good luck.
Yes, you're on it!
I wouldn't say you're naive so much as becoming aware that most wholesalers don't have a clue or, it could be they are trying to scam you.
When I meet others that use incorrect data, I usually chalk it up to them being unaware rather than trying to scam or lie to me. The more salesmanship they throw into the conversation the more I begin to lean toward seeing them more as the uniformed type, and that can lead to seeing them as attempting to scam the deal or deceive they more they talk sticking to their claims.
I just got off another wholesale thread. I have no idea when passing a contract or property off to an investor or one dealing in RE ever got the term "wholesaling" we didn't have the term in the 70s or prior that I know of. They seem to think it's a tactic worthy of forming a business strategy around, to me, it's like a radiator shop saying they are in the car repair business, it's a sliver of the business.
Devised and promoted by gurus that prey selectively on people with little RE knowledge, usually without money and or credit that restricts their activities. Not bad folks, just a more desperate situation looking for ways to earn money. The training is specific to a system, step by step, that only tosses them into the deep end where they dog paddle to survive. Without getting back to the shallow end and learning the conventional strokes they'll never be winning a swim meet or diving off the platform.
So, you can't really expect much from most. Like I've mentioned before, if a wholesaler has the knowledge really required to be a really good wholesaler, they probably wouldn't be a wholesaler. To be good at it you really need to understand markets, property valuations, construction, the business aspects of buy and hold investors, the retail market, RE financing options and settlement costs, legal issues and title matters. If they know all that, they'd be doing many other things, in some cases much easier things and more profitable things.
As long as they are under the impressions pumped out by gurus, coaches, paid mentors, even other unknowing operators, as long as they believe what they are doing is the way to do it, they'll likely stay right where they are.
Wholesaling is a good technique, but the way it's promoted and carried out, it has little to do with real estate and more to do with marketing a transaction. Why not sell options on soy beans? :)
"So, you can't really expect much from most. Like I've mentioned before, if a wholesaler has the knowledge really required to be a really good wholesaler, they probably wouldn't be a wholesaler. To be good at it you really need to understand markets, property valuations, construction, the business aspects of buy and hold investors, the retail market, RE financing options and settlement costs, legal issues and title matters. If they know all that, they'd be doing many other things, in some cases much easier things and more profitable things."
@Bill Gulley Am I reading this wrong or are you saying people become wholesalers when they are not smart enough to do anything else in real estate?
I wish Google would start working on some glass that would just point out the scammers in the room. Actually, with face recognition and online public records searches that might be slightly possible. Maybe I should dust off my coding skills and get to work on that.. Then I'll sell it to google or facebook for $97,000,000,000,000,000,000
The longer I'm involved in business, regardless of the sector, the more due diligence I do on all clients, employees, subs, vendors, transactions, contracts... The more you deal with the human race, the more cynical you get. Thing is, you only get ripped off by people you trust. The sad conclusion to that is trust nobody.
I think @Brett Russell is right. Get referrals from others doing what you're doing in your area and then realize that you still could get scammed so know your business well.
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