Any Positive Experiences Working With Wholesalers?
Hello BP,
I wanted to put this post out here as I have been reading many of the forums lately, and it seems that most real estate investors are quick to bring wholesalers to a negative light, and some really blast wholesalers thinking that "all" wholesalers are shady, brand new, don't know what they are doing, are just out to rip people off, and the list goes on.
So my question for any landlords, fix-n-flippers, or any other real estate investors on BP is: Have you had any positive experiences with a good wholesaler? Is there a wholesaler that is a big part of making you lots of $ and bringing you good deals? I want to see if all of Real Estate investors think wholesalers are bottom dwellers, or can wholesalers be a huge asset for other investors?
I can start by saying that I am from Indianapolis and a full time wholesaler. I have chosen this as a career path. I could be a landlord or a fix-n-flipper (Which I did for 3 years), but I just like finding deals $ selling deals. I don't enjoy contractors or tenants... so that's why I chose this path. I have sold many deals to other investors in the past 8 years, and I know that some of the investors have made a lot $ on the deals that we have sold them. I also worked with other wholesalers and have a positive experience with a few of them, and I actually will buy their deals because they leave a lot of "meat on the bone". So I have had some good experiences with wholesalers and think they can be an asset. Yes, I agree, there are many out there that don't do it right & and there are "bad wholesalers." But like any profession, there are good ones and bad ones. Please tell us your "Good" experience that you have had using a wholesaler and making a lot of $ from their services.
Thank you for your time and have a blessed day.
Brett
I am looking forward to doing some deals with you in the future! Wholesalers fill a void.
Sorry for the typo in my subject. Grammar is not be strong suit. I meant "Any positive experiences working WITH wholesalers"
IMO - the bad rap for wholesalers comes from the shady "Craigs List Whores". You now the ones...they live out of State and crab your property from CL or other websites, then mark it up [usually a lot] and then try to pawn it off as their own to other buyers.
Even worse is the ones that send me a property that is obviously "daisy chain" because I've seen it 5 other times from 5 other "wholesalers" - all at different prices. It's always amusing to see my own inventory show up a few days later after I've sent it out to my buyers list as a daisy chain deal.
I try not to buy from anyone that is not direct to the seller and/or has direct ownership of the property. I tend to shy away from "assignments" as well, even though they do work out sometimes.
Like @Brett Snodgrass, I am a full time "wholesaler" and pride myself on offering quality opportunities and try to leave plenty of "meat on the bone" for the next guy. I own all the properties that I offer to sell and am a licensed Broker as well.
I've had my share of bad experiences with the above mentioned "wholesalers" and it's a shame the general reaction to wholesalers as a group is so low.
Thanks Kevin, I am looking forward to it as well, Will send you a PM. Thanks
Thanks Shawn, I can vouch for you, that you are a man of your word, and I have the utmost confidence in dealing with you as we have done in the past. Thanks for your comments, I have had many of my deals show up from other wholesalers with various prices as well, some even marking them up 20-25K from my price, and I don't even know who the person is? I am not where they have learned this tactic from, but I feel if anything is illegal, then taking someone else's property and marketing it and pretending like it's your own when they don't have any interest whatsoever in the property is definitely illegal without authorization from the owner. I feel like this is really bad Form, and we should help each other to not let this happen, by reaching out to anyone doing this, and turning them in as it gives a bad name to the industry.
If anyone else has any positive spin on working with a wholesaler, we would love to hear.
Thanks for your comments. Brett
Way to step it up proudly for your honarable approach to your profession @Brett Snodgrass. I don't have the skill to do what you and the other professionals ws do in this market.
I was at a meetup last night for the largest turnkey operator in Indianapolis and he usually buys from the court house but he said his best deals always come from wholesalers, he was begging them for more properties.
As a PML in the indy market, I can personally vouch for the professional approach @Brett Snodgrass and @Shawn Holsapple, and several others as well in this market who may jump on this thread. Since I JV with other investors who buy homes from you guys and others , we profit as well after rehab and selling. I think the legit wholesaler provides a very valuable service in an inefficient market place. Persevere!
I haven't worked with wholesalers very much since I market for my own deals. However, the first flip I bought in Austin, I got from a wholesaler. He assigned a one page hand written contract to me with a $10K assignment fee. We did an extreme rehab, added square footage, and netted $84K profit. Would do again.
My wife and I are 3 months into our REI business and thanks to a wholesaler we are renovating deal 1 and are about to start deal 2.
I don't know that we would have deals underway already through our own marketing.
You still have to do your own due diligence but so far my experience with wholesalers is positive.
@Brett Snodgrass - As a wholesaler myself I am not in a position to add the content/feedback that you are looking for.
However, I will say that as I was getting my start here in the Indianapolis market you and @Shawn Holsapple were two of the first that stood out as solid professionals that had solid reputations.
Thank you to both of you!!
We get at least 50%-60% of our properties from wholesalers who bring us off market property.
Thanks Don, It has been a pleasure working with you, and looking forward to more deals in the future.
Thanks for the Input @Jon Klaus, 84K is AWESOME!
Thanks @Hugh Ayles, I wish you much success in your ventures.
Thanks @Glenn Antoine, I wish you much success, and let me know if you need any help with anything.
Brett
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My only complaint is there aren't any in my little area! I've even advertised on craigslist. "I'm reviewing property proposals! Bring me your deals!"
The good wholesalers that solve problems for those poor sellers with few options are awesome! Their skills and knowledge are the whole enchilada: From marketing and lead generation, negotiating to valuating (the property and the rehab) to having the buyer's list, closings, contracts, etc. Surprised so many new folks try this first. It takes years of experience to gain these skills!
There are are quality folks in every profession. It's the no EMD, empty seller promise, mark-up artists that give the profession a bad name. Quality wholesalers rock and you can find them here!
I am relatively new in Austin land area as an investor own couple of rental properties. I wanted to reach out to local Wholesalers but not having any luck on that. I didn't get any "wholesale" price, mostly overpriced and projections are totally wrong in order to make them marketable. Sometimes took directly from MLS. Ironically, they are making money meaning there are people out there kept purchasing from them and keeping them in the businesses. If there are "Good" wholesaler in Austin Land area please do reach out to me. Thanks!
@ Hugh Ayles, Who are you getting your deals through?
@brettsnodgrass @shawnholsapple
Hello boys lol
Can vouch for Brett and Shawn. Closed deals with both and both are honorable!