Why are cash buyers at auctions not receptive to wholesalers who approach them?

3 Replies

To start off, this is a claim that I haven't necessarily found to be true. I've made LOTS of contacts at auctions. But I have seen this claim, or similar claims that buyers at auctions are jaded and don't care to talk to wholesalers.

Could someone share additional insight on the mindset of the buyers at auctions and why they might not be receptive to wholesalers, in particular, sharing their contact info with us?

thanks!

Chris

Wholesalers can sometimes get a bad wrap. There are some great one's out there (we've bought several houses from wholesalers) but there are also some that basically just spam you with junk. There's no real way to know upon meeting someone which type they are and I suspect many of them are probably just under the impression they're wasting their time, even if that's not the case.

Medium apartment logoAndrew Syrios, Stewardship Investments | http://www.StewardshipProperties.com | Podcast Guest on Show #121

That's because the wholesalers they have encountered in the past were just a waste of time - inflated ARV and underestimated repairs (plus overestimated rents where applicable) leads to bad deals.

Here's how I did it. 

1. Found deal ( sellers price less than TS buyers )

2. Put into escrow ( Contract & 1k)

3. Called/emailed VP of Operations told them of opportunity

4. Confirmed with buyer (asset and escrow)

5. Buyer closed in their LLC and paid me outside of escrow.

I now have a title officer and buyer on the same page which makes processing easy. In fact I just learned how valuable this can be.