Circumventing Wholesaler

6 Replies

Hi everyone, general question here.

Interested in a property that came through in an email from a wholesaler. Cannot reach them by any method for a week. I saw through tax records who owns the property. Would it be wise to skip the wholesaler at this point and go to the sellers directly to buy the property? Or can they not sell it now because the wholesaler technically owns it at this point? Unsure about that. I'm happy to give the wholesaler my business but if I can't get in touch with them (multiple emails and voicemails), I feel like I need to do something to get this property.

If anyone knows, let me know.

thahnks,
John

Maybe you could contact the homeowner and first find out if this wholesaler even really has it under contract. If they do, tell the homeowner that you're interested in buying their house but you can't get ahold of the wholesaler. Then have them call the wholesaler. The wholesaler will likely be more responsive to them.

I wouldn't wait on the wholesaler if there is a way to contact the seller directly.

That said you probably don't want to completely cut out the wholesaler either.  If you ultimately close with this seller, you should honor whatever agreement is in place. 

I would start off contacting the seller and mentioning the source of the lead.

I agree with Kyle on this one. A REAL wholesaler would answer his phone or at least return your calls. Contact the homeonwer to see if there is a contract on the house. If there is you can just wait till the contract expires and get the house. 

I disagree with the people saying to circumvent the wholesaler. I try to run my business with integrity. You never know why the guy may not be returning calls. Family emergency? I am for the approach of contacting the home owner and asking them to have the wholesaler return your call. If you go with the approach of "waiting for the contract to expire and snatching it up" that paints you in a highly unfavorable light. Not to mention this wholesaler may be active in other clubs/circles. He may end up with a steal down the road and will remember the guy who worked him over when you submit your offer. In real estate your biggest asset if your name. Don't muddy your reputation. 

Originally posted by @Ryan Dossey :

im with you man especially for the fact that I am a full one wholesaler. Your name is you biggest asset in this business and I am a firm believer of the "honor code". You right you never know what that wholesaler is going through and why he isn't retuening your calls. I have never done it but if I had a property under contract and someone decided to go around my back and contact the seller directly and convince them to let my contract expire to sell for a higher spruce I would CLOUD THAT TITLE like a normal day in rainy Seattle and make my payoff fee what I would have made on the deal. Keep your biz respectful and honest and you will go further and have greater success. 

Business is Business.  This "wholesaler" has not reached out to return communication within a week.  With todays technologies that is unacceptable.  Even while I'm on vacation I check emails in the am and pm.  Contact the owner directly and see what you can do. 

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