Why do seasoned real estate investors and seasoned real estate brokers/associate brokers hate wholesalers?

[Brian Gibbons]

Not trying to be provocative here, but many seasoned real estate investors and seasoned real estate brokers/associate brokers hate wholesalers.

Not just for breaking the law, acting as an agent for a fee, without being on title, but unprofessionalism, outright lying, misrepresenting, etc.

And there is no recourse for the poor home seller; if you were treated poorly, unethically, with a listing agent or a buyers agent, you have recourse.

There is a live thread:

Well-executed wholesale deals feel like well planned checkmate.

I would like anyone with 10 years experience in real estate to list of 3 to 10 reasons due to ACTUAL experience with terrible wholesaler behavior why he or she truly dislikes the average wholesaler.

Ex) wholesaler said he would definitely close with CASH PARTNER, there was no CASH PARTNER, wasted 3 months of prime summer home marketing.

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@Account Closed
@Bill Gulley

@Mike LaCava

@Brian Burke

@John Thedford

@Bryan Hancock

@Ann Bellamy

@Paul Timmins

@Rob Gillespie

@Steve Vaughan

[Brian Burke]

@Brian Gibbons I don't hate wholesalers. Perhaps many seasoned investors and brokers do.  But I suspect many also do not.

You asked for reasons based on actual experience. The only negative experience I actually have is where I make an offer on a listed property, only to have my offer rejected because I was outbid, then the next day I have a wholesaler trying to sell me the same deal a price that makes no sense. This has happened several times. I'm perfectly capable of making offers on properties that are listed on the market, I don't need wholesalers getting into the mix and taking profit out of the deal, or killing the deal entirely.

I can understand why brokers may dislike wholesalers but I don't have any actual experience in that regard so I'll refrain from commenting.

On the flip side, one of my largest profits on an SFR flip came from a wholesaler that I met right here on BP. In the context of off-market properties, I love wholesalers as long as they are direct to the seller and not just handing me a useless daisy chain list. I've bought several great deals from wholesalers.

There is a tendency for wholesalers to have a bad rap, and I think that in many cases (but not all) the person is just new to REI and lost in a world they haven't yet become familiar with. We were all there one day.