Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
9y
BEFORE you deal with any unlicensed broker consider these ideas:
1. Always require WRITTEN comps that can be substantiated
2. Always require WRITTEN bids from LICENSED contractors
3, Always require WRITTEN comps to substantiate ARV
4. NEVER pay a non-refundable fee
5. Always correspond via email so there is written record to bring suit in the event of misrepresentation.
6. Always demand to see a copy of their contract.
Remember, these are middlemen trying to play RE agent without a license. Make sure they provide GOOD comps. Make sure if they are representing an ARV value make them provide ARV comps. If they make claims about rehab costs, make them provide WRITTEN bids from contractors. They are brokering real estate so make them PROVIDE good quality information like you could get from a licensed broker. Many of these unlicensed brokers simply make up figures that sound good but cannot back them up.
Unlicensed brokers generally have no insurance. From personal experience most just pull their ARV out of thin air. Lets see: claim it costs x and it will sell for y. If someone uses an agent, an agent won't provide or should NOT provide the BS an unlicensed broker does. They should not or do not provide rehab figures (to protect themselves). They should tell a prospective buyer to get their own bids. They can provide comps in some situations on an updated unit vs an original unit. Agents have something to lose, can be fined, and have their license suspended or revoked. Unlicensed brokers, acting as fringe operators skirting the laws have nothing to lose. They are acting as an agent without the laws, ethics requirements, education, and insurance that are vital IMO.
Real Estate Agent · Falls Church · Member since 2012 · 2k+ posts · 1k+ votes
9y
@Henry Montgomery III most of your deals are not going to be sitting around in an advertisement waiting for you to pluck them. The best thing to do is get out and start talking to people :)
Orlando, FL · Member since 2015 · 1 post · 0 votes
7y
Here is a few companies that you can do your homework on for a Wholesalers Website.
CashFlowInvestorsPortal.com provides private label website, CRM, and third party site syndication like facebook, Instagram, Craigslist and others. I know of a lot of wholesalers here in Florida that use them including myself. Also, bigger pocket offers a platform that you can look into as well. Don't know much about it but i have one friend that uses them and he is from Ohio. Another company is CarrotInvestor.com. They offer a private label website but with no syndication. Price is a little cheaper than CashFlowInstorsPortal.com. Below is a list of other ones i had on a list to look into but never got around to do so apart from the first three. Hope this helps :)
@John Thedford here we are some years later and wholesaling is still thriving and legal if done correctly. You really sound bitter that investors are able to do this and build their careers into other real estate strategies while making money. It's legal and people will continue doing it. You come across sounding envious and it's sad. We have alot of happy clients and everything is transparent and approved through our real estate attorney.
Specialist · Member since 2021 · 267 posts · 113 votes
5y
I see most of these posts are over four years ago. Lot's of things can chance in four years, hopefully Mr. Thedford is no longer a broker. I'm a newbie wholesaler, so I'm still wet behind the ears. In my search for properties I see most have a realtor listed. As such the property is off limits for a wholesaler because that would cut the realtor out of his/her fee. Wholesaling is competition for a realtor and I believe that's why Mr. Thedford is so much against the practice. Lets be perfectly clear, wholesaling is NOT brokering nor is a wholesaler representing himself as a broker, basically it's flipping contracts which is 110% legal. I can purchase an automobile for say 5K and resale it for 10K, nothing deceptive and perfectly legal. And I can do so without a license. If Mr. Thedford were to agree to a deal with a wholesaler involved, first that would help him find a buyer and both would make a commission. Better than not selling at all. I hope Mr. Thedford can sleep tonight knowing he's scammed some one out of thousands of dollars under the banner of his fee added to the price.