Turning Wholesalers into the Good Guys
Rental Property Investor · Newport News, VA · Member since 2018 · 11 posts · 14 votes
Turning Wholesalers into the Good Guys
Most Popular Reply
@Latia Rowland @Mike Cumbie is totally ignoring the fact that there are several categories of sellers who can't or won't sell through a realtor. He's living in a fantasy if he thinks every seller can list every house in every possible scenario and come out better than selling direct. I know this because I exclusively buy direct from sellers who fall into the following categories:
1. Sellers who have been burned by agents before.
2. Sellers who have no equity with which to pay a commission.
3. Sellers who don't have the time, money, or desire to get their property "listing ready".
4. Sellers who don't want the fact that they need to sell to be "shouted from the mountain tops". They want a private and discreet transaction.
5. Sellers who don't want a parade of tire-kickers marching through their house.
6. Sellers who tried listing and their agent failed to produce an offer.
You can do real estate however you want. But being a realtor is totally different than being an investor. You work with a different group of sellers with different needs. "Wholesaling" is not about scamming sellers into taking less than they can get listing with a realtor. True wholesaling is an entirely separate market from the retail MLS.
78 Replies
- Investor · Vancouver, WA · Member since 2014 · 270 posts · 111 votes8y
I started as a wholesaler and now I am just a buyer most houses we buy are not suitable for the MLS or a "Realtor" and when we go on appointments if the house is better for the MLS we tell them what they could realistically get going that direction. A lot of times they still go with us. People think we are in the house business when I am actually in the people business, and with that just be a good person and treat people right and it all works out.
@Latia Rowland I love this conversation.
I am going through the same situation and like you I thought well let me get my license so I can do it the right way but then I learned about net listings...https://www.biggerpockets.com/forums/93/topics/243.... ( I am still going to get my license though)
At this point, I am in the beginning stages of forming my LLC and will consult a real estate attorney about how to protect myself and the best way to use the law in my favor. I will pursue this sector of real estate investing despite the bad rep "wholesalers" have, because people like me and you can change that if we are committed to being ethical and honest.
I am in Virginia as well and would like to add you to my network, message me if you would like to do so. Either way, I wish you the best sis. Do your research and stay determined. Take care!!!
- 8yWilliam BrownPro MemberWholesaler · Los Angeles, CA · Member since 2016 · 276 posts · 181 votes
This is a forum of investors. We speak a different language--one of numbers, ROI, licenses, "correct" ways to do things, etc. All by the books. All formal, proper, and regulated. Wholesaling here is like the punching bag for 90% of the folks on this site that are either a) flippers and don't like having to pay to have opportunities sent to them or b) realtors who know huge demographic and tech changes are coming and unless you're with a big company leveraging big data you'll be wiped out.
Enter the real world of wholesaling
Problem solving. Pound the pavement, (yes, don't just look for the ones on the MLS) and you'll find sellers that simply don't give a **** about any the above. They have problems they need solved and they don't care if they sell it to a serial killer, as long as they can get out of their situation. There's bad unethical people on both sides, both wholesalers and realtors. The folks I speak to everyday HATE realtors because most just have commission on their breath and don't take a second to actual listen and try and solve the sellers problems. Gurus don't help, and theres a lot of people doing this straight illegally and unethically trying to make a buck. Get past those 99% and you'll see a largely untapped market of people who just want a fair cash offer on their home and not deal with the hassle. Solve the problem first, get paid after.
- Real Estate Broker · Chicago, IL · Member since 2015 · 122 posts · 103 votes8y
Hello!!
Thank you for posting.
I've been seeing a lot of trending posts on wholesalers lately, and it's always been the age-old question, "are wholesalers good or bad?"
The simple answer is: just like anything, there are people who are good at their job, and there are people who are bad at their job. There are good basketball players and bad basketball players. There are good attorneys and there are bad attorneys. There are good educators and there are bad educators, etc. And wholesaling is just like everything else: there are good wholesalers, and there are bad wholesalers.
With wholesaling, and any other profession, in my opinion, you'll need a couple things to stand out:
Number 1 - you'll need to be competent. You are correct in your assessment above regarding rehab estimates and determining ARV. If you tell me there's $15,000 needed in repairs for a 500,000 property, you'll never hear from me again.
Number 2 - you'll need to be ethical. Never lie. Disclose, disclose, disclose. If you don't have the money to buy the home yourself (most wholesalers won't), then don't tell the owner your the buyer. Tell them you're a wholesaler who sources properties to investors that give you a fee for your services. You'll also need to disclose to your buyer all the terms of your original contract you're assigning, which means they'll know how much you're making on any given deal. Also could be a touchy subject, but if handled correctly, should be no big deal.
Number 3 - kind of a piggy-back off Number 1, but also a no-brainer. DO NOT wholesale deals in California if you're a wholesaler in Illinois. How can you really be expected to be taken seriously? Know your market, and stay out of areas you do not live in. C'mon guys...
Here's my ADVICE: get your real estate license and learn the MLS. Not only is that the BEST way to pull accurate comparables for your subject property, it will also be a valuable source to meet and learn from other brokers. Experienced brokers can show you the ropes of the business, and some can even bring you deals that they don't want, or don't have a buyer for. Extremely valuable. Also, join a couple local meetups in your area and be-friend investors and contractors. DO NOT be-friend other wholesalers unless they are at the level you want to be operating at. The goal here is to learn rehab estimates directly from investors who are currently doing construction, and/or doing the same with their contractors. If you learn rehab numbers from another wholesaler, or even from a book, it's going to be difficulty to apply that to an actual scenario and have accurate numbers for your buyers.
In summary: know your numbers, provide real value, and be ethical. Being GOOD is really that simple.
Hope that helps!
- Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes8y
Originally posted by @Doug P.:
@Joe Splitrock When someone sells to me they pay no fees or commissions and no closing costs or concessions. So obviously 0% is less than 6%.
This is what people call a red herring which is to share one fact to distract from the relevant issue. I am sure you tell sellers that no fees is the advantage of working with you, over a realtor but you don't disclose that in exchange for paying 0% selling fees, they will sell it to you for 20% (or more) below what they could get through the MLS. You probably tell them they won't get much more money on the MLS and will have to deal with months on the market, but we both know that is not true. The same flippers who buy from wholesalers watch the MLS for deals. When distrissed properties hit our local MLS, there is a ten flippers parked out front the day it hits to look at it. They have multiple "as is" offers within a couple days
Here is an example:
Wholesaler pays $60,000 with 0% fees and resells to a flipper for $80,000, so net seller is $60,000
MLS with Realtor sells for $80,000 directly to a flipper with 6% commission, so net seller is $75,200
As far as tips go, give a range for ARV or estimated rent. I find it hilarious when wholesalers say "Will rent for $800" when I know 100% the FMV is $700-$725. The investors are studying and analyzing these things 100x more than you, and they'll be happier getting more than your estimate, than less.
When you're showing properties, people expect you to act like a regular real estate agent, because that's essentially what you are.. only show and talk about what you know 100% you have a key to, and can make a deal. Don't say "I know this person, they'll probably want to sell" because then it's just a lot of hot air. Be professional, have numbers ready and clean cut. Don't say what you think, say what you know.. i hate it when people get emotional or talk too much, it's a real estate transaction.. pure and simple!
- 8yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Originally posted by @Doug P.:
@Pratik P. But you just don't understand. If only they had listed with a REALTOR they could have waited 90+ days, had their dirty laundry aired publicly, and then lost everything in the foreclosure. BUT they would have at least felt secure in the knowledge that they had their best interests represented by a licensed professional, as their life went down in flames.
I have owned 3 brokerages and had hundreds of agents work for me over the years.. there are brokers who can sell a house as good and faster than any wholesaler on the planet.. hands down... you just have to find those that work in those asset class s not a green agent or an agent that works with mostly retail mom and pop.. there are plenty of brokers who have a long list of clients that pay cash and can perform as good or certainly better than most wholesalers out there.. especially if the wholesaler really does not have ability to close.
I buy quite a bit of property each year well over 200 properties and the deals come from my brokers.. sometimes a wholesaler gets in there No biggee.. but to think there are not brokers who can do this as good if not better thats a joke.. I am a broker I did foreclosure rescue for a living for 6 years and it was the opposite I rescued the poor person who was going down in flames from the no money wholesaler who could not get the deal done LOL.. so two sides to this for sure.. so not all brokers are Pintos and not all wholesalers are out and out crooks.. but what you do have is beginners who think wholesaling is the way to start have NEVER done a transaction and those are out there in droves .. they just throw stuff up.. I dont take their calls or emails.. waste of time.. My great OREO brokers though now those people make me money.. they have direct pipelines into banks and servicing companies thats were my deals come from
- 8yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Originally posted by @Joe Splitrock:
Originally posted by @Doug P.:
@Joe Splitrock When someone sells to me they pay no fees or commissions and no closing costs or concessions. So obviously 0% is less than 6%.
This is what people call a red herring which is to share one fact to distract from the relevant issue. I am sure you tell sellers that no fees is the advantage of working with you, over a realtor but you don't disclose that in exchange for paying 0% selling fees, they will sell it to you for 20% (or more) below what they could get through the MLS. You probably tell them they won't get much more money on the MLS and will have to deal with months on the market, but we both know that is not true. The same flippers who buy from wholesalers watch the MLS for deals. When distrissed properties hit our local MLS, there is a ten flippers parked out front the day it hits to look at it. They have multiple "as is" offers within a couple days
Here is an example:
Wholesaler pays $60,000 with 0% fees and resells to a flipper for $80,000, so net seller is $60,000
MLS with Realtor sells for $80,000 directly to a flipper with 6% commission, so net seller is $75,200
I get 10 plus yellow or variants of them each and ever week of my life.
they all say the same thing.
Hey i am joe blow I wan to buy your home I am a cash buyer.
benefits of working with me.
No listing fee you pay nothing
I can close on a date of your choosing .. but then the wholesaler goes for 60 and 90 day due diligence periods in many cases.
No proof of funds like broker would bring.. just a promise of funds.
there is no question though that some areas of real estate are under served in the brokerage community usually very low value assets so this is where many wholesalers find it works for them and let me tell you there is extreme profiteering at the disservice of the seller.
I just had one come to me were the wholesaler bought for 7k and resold for 28k.. how is that adding value to a empty house.. and how is that a good deal for the seller.. ??? Even though the number works for my client i cant help but think the seller would have been better served to talk to a few others or tried it on MLS..
Originally posted by @Joe Splitrock:
Originally posted by @Doug P.:
@Joe Splitrock When someone sells to me they pay no fees or commissions and no closing costs or concessions. So obviously 0% is less than 6%.
This is what people call a red herring which is to share one fact to distract from the relevant issue. I am sure you tell sellers that no fees is the advantage of working with you, over a realtor but you don't disclose that in exchange for paying 0% selling fees, they will sell it to you for 20% (or more) below what they could get through the MLS. You probably tell them they won't get much more money on the MLS and will have to deal with months on the market, but we both know that is not true. The same flippers who buy from wholesalers watch the MLS for deals. When distrissed properties hit our local MLS, there is a ten flippers parked out front the day it hits to look at it. They have multiple "as is" offers within a couple days
Here is an example:
Wholesaler pays $60,000 with 0% fees and resells to a flipper for $80,000, so net seller is $60,000
MLS with Realtor sells for $80,000 directly to a flipper with 6% commission, so net seller is $75,200
Scenario #3: Seller sells $80,000 house to me for $80,000, nets $80,000.
- Attorney · Northbrook, IL · Member since 2017 · 719 posts · 549 votes8y
@Van Blackman I think you missed something on Number 1 that drives me crazy. I don't mind working with a wholesaler that can bring me a good deal to flip. I'll pay you for doing the grunt work to track down a seller that is ignoring or abandoned a property. My issue is I get emails every day from wholesalers offering me a property where they are A. offering it at a price where I can't make a profit, B. using unrealistic rehab numbers, and C. giving me an estimated sale price that is horribly inflated. Nine times out of 10, I run a simple CMA and the sale prices are not even close or the comps they gave are for completely different style properties.
- Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes8y
Originally posted by @Doug P.:
Originally posted by @Joe Splitrock:
Originally posted by @Doug P.:
@Joe Splitrock When someone sells to me they pay no fees or commissions and no closing costs or concessions. So obviously 0% is less than 6%.
This is what people call a red herring which is to share one fact to distract from the relevant issue. I am sure you tell sellers that no fees is the advantage of working with you, over a realtor but you don't disclose that in exchange for paying 0% selling fees, they will sell it to you for 20% (or more) below what they could get through the MLS. You probably tell them they won't get much more money on the MLS and will have to deal with months on the market, but we both know that is not true. The same flippers who buy from wholesalers watch the MLS for deals. When distrissed properties hit our local MLS, there is a ten flippers parked out front the day it hits to look at it. They have multiple "as is" offers within a couple days
Here is an example:
Wholesaler pays $60,000 with 0% fees and resells to a flipper for $80,000, so net seller is $60,000
MLS with Realtor sells for $80,000 directly to a flipper with 6% commission, so net seller is $75,200
Scenario #3: Seller sells $80,000 house to me for $80,000, nets $80,000.
You can't argue the logic, so you just claim that you pay the same price someone could sell for on the MLS? I have never met a wholesaler that pays retail price. How does the math work on that? I guess in your business model you can just wholesale off the MLS? Tell us more about how you do that.
- Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes8y
Originally posted by @Jay Hinrichs:
Originally posted by @Joe Splitrock:
Originally posted by @Doug P.:
@Joe Splitrock When someone sells to me they pay no fees or commissions and no closing costs or concessions. So obviously 0% is less than 6%.
This is what people call a red herring which is to share one fact to distract from the relevant issue. I am sure you tell sellers that no fees is the advantage of working with you, over a realtor but you don't disclose that in exchange for paying 0% selling fees, they will sell it to you for 20% (or more) below what they could get through the MLS. You probably tell them they won't get much more money on the MLS and will have to deal with months on the market, but we both know that is not true. The same flippers who buy from wholesalers watch the MLS for deals. When distrissed properties hit our local MLS, there is a ten flippers parked out front the day it hits to look at it. They have multiple "as is" offers within a couple days
Here is an example:
Wholesaler pays $60,000 with 0% fees and resells to a flipper for $80,000, so net seller is $60,000
MLS with Realtor sells for $80,000 directly to a flipper with 6% commission, so net seller is $75,200
I get 10 plus yellow or variants of them each and ever week of my life.
they all say the same thing.
Hey i am joe blow I wan to buy your home I am a cash buyer.
benefits of working with me.
No listing fee you pay nothing
I can close on a date of your choosing .. but then the wholesaler goes for 60 and 90 day due diligence periods in many cases.
No proof of funds like broker would bring.. just a promise of funds.
there is no question though that some areas of real estate are under served in the brokerage community usually very low value assets so this is where many wholesalers find it works for them and let me tell you there is extreme profiteering at the disservice of the seller.
I just had one come to me were the wholesaler bought for 7k and resold for 28k.. how is that adding value to a empty house.. and how is that a good deal for the seller.. ??? Even though the number works for my client i cant help but think the seller would have been better served to talk to a few others or tried it on MLS..
My issue with wholesalers isn't that they find good deals and make money. It is when they pretend like the seller wouldn't get more money through another avenue. The wholesaler controls the information to the seller and convinces the seller that wholesaling through them is the best option. That is negotiating and that is how they make money. My problem is when wholesalers refuse to acknowledge that the profit of their business depends on buying properties at lower than market prices. They refuse to acknowledge that selling on the MLS would result in larger net dollars to a seller. We all know what this business is. I can't help but think some wholesalers have some lingering guilt and acknowledging that they are not always the best choice would make the job harder.
@Joe Splitrock I'll use short sentences since you seem to be having trouble understanding. Are you a REALTOR by chance?
House is worth $500,000.
I pay $500,000 + closing costs.
Seller nets $500,000.
- Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes8y
Originally posted by @Doug P.:
@Joe Splitrock I'll use short sentences since you seem to be having trouble understanding. Are you a REALTOR by chance?
House is worth $500,000.
I pay $500,000 + closing costs.
Seller nets $500,000.
In this example, what do you sell the house for? We need that number so we can calculate your profit. That will tell us how much more the seller could have made on the MLS.
I am not a realtor, but I do look at the MLS daily and I follow properties that were wholesaled and flipped. I can tell you that wholesalers pay way less than a similar distressed property would sell for on the MLS. Even the flippers pay less from the wholesaler than it could sell for on the MLS. I don't see how a wholesaler makes money paying retail.
I mean let's be real, in this market (CA) do you even need a realtor?
I had this one lady call me and say "The property is a complete fixer, I have a showing coming up if you'd like to come make an offer"
It was like Disney Land...buyers flooding the place. It sold for a price I wouldn't even get close to and the lady saved 20k by avoiding commission. I wonder if even 1% of realtors would have told her this could happen since she was willing to market the property herself (Fsbo, facebook, craigslist, etc).
Lots of you here talk like realtors are angels sent from heaven but I see them being obsolete in the future. Companies like redfin are already offer 1% listings. I'm saying that as someone who's about to be licensed...
@Doug P., I'm genuinely curious....
.
If you put a house under contract for $500K that is "worth" $500K, you pick up the closing costs of let's says about $500-$1000, do absolutely nothing to it except assign the contract to someone else, and the Seller nets $500K....what contract price do you sell it for to your Buyer?
.
I think this discussion is going to come down to a definition of the word, "worth." Looking forward to the answer.
- Wholesaler · Newport, KY · Member since 2014 · 62 posts · 47 votes8y
Wow, what a great thread so I thought to chime in. I've been wholesaling full-time for almost 2 years now and I'm genuinely proud of what we do and how we do it. We tell the sellers they would make more money if they list with a realtor. We actually give them every option not to use us because if we can't bring the seller value, we don't want to do the deal. We also tell each and every seller who we are and how we operate, if we are buying the house, we tell them, if we are wholesaling the house we say we have investment partners who will be buying the house. And mainly, the houses we get under contract couldn't have been sold any other way because of the timeline to sell and condition of the home.
We believe in high integrity in everything we do and I think that is one of the reasons our business has grown so much so fast. Unfortunately, there are bad actors in every profession and wholesaling is no different.
But to contribute to the thread that @latia Rowland started, I had a wholesaler call me about a deal I was selling. After a very short while I figured out this guy was a wholesaler so I asked him and he said: "No, I'm an investor." Later in the conversation, he said "well, I'll send this out to my cash buyers" at that point I knew he was lying and I ended the conversation. Why is it so hard just to be honest to everyone you deal with?
Well, great topic and I hope I contributed to it, cheers, Garth
- Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes8y
@Garth Kukla I don't see any issue with wholesalers if they are making sure the seller knows there are other options that will yield higher net value. Of course the other options may take more time, which is often the value a wholesaler brings - making it happen fast.
I agree there are bad actors in every profession, but wholesaling has a higher percentage than other professions. That is because it unregulated and there is no barrier to entry. Knock on a door and you are a wholesaler. Of course real estate sales are regulated, but wholesaling exists outside the regulation. So you have uneducated and unlicensed people often learning fast talking tactics from a guru. You see it all the time on BP. People say, I have no money and I am in heavy debt so how can I get started in real estate? Wholesaling is always the answer.
One thing I have wondered for wholesalers with integrity. Is there a limit to what you will take for profit? For example lets say you asked a person how much they wanted for their house and they said $50,000. You know on a bad day you could have 10 people willing to pay $150,000 cash for it. Would you offer the seller more, less or equal to $50,000? Would that situation change if it was a little old lady? Meaning if you feel the person isn't savvy, will you treat them different?
@Joe Splitrock If your brain is half as smart as your mouth you should be able to tell me how I can buy a house for market value and still make money.
@Erik W. No tricks regarding the definition of the word "worth". I'm talking about the price the seller can get on the open market, the value the appraiser pins to it, or the value the bank will base their loan on. I know that the real estate market is fluid and those 3 values are commonly all different, but for the sake of this discussion, let's assume it's possible to pin down an exact dollar value for the property at this moment and that value is $500k.
In practice, I agree with you that "value" or "worth" is highly subjective and I would never attempt to pinpoint that number so precisely. I mean think about it, a $500k house on the MLS can easily sell for a 20% range ($450-$550k) depending on market conditions, season, timing, location, competition between buyers, competency of the agents involved, staging, cleanliness. Hell, even the way the house smells.
However, like I said. For the sake of this discussion, let's assume that we can all agree the house is worth $500k and that is what the wholesaler has it under contract for.
There are several ways the wholesaler can make money in this scenario and I'm curious whether Joe can come up with even one.
@Pratik P. No kidding! There's a realty here that charges 0.59% for full listing representation. Never mind all the $99 flat fee listings. The thing is the buyer's agent actually does all the work of showing and selling. There's really no need for a listing agent at all unless the seller doesn't want/have time to negotiate for themselves, in which case the listing agent is doing for the seller exactly what a wholesaler does for the flipper. If listing agents were honest they would be promoting themselves like maids. Sure you can clean your house yourself, but it's easier to hire someone to do it. Instead listing agents behave like sellers will be murdered and have their children sold into slavery if they don't have a REALTOR represent them LOL!
Joe, that's a good question, one which I've thought about before. Although I don't forsee such a situation arising, there are 2 ways I would take it.
1. If the house is in good shape and the seller has no real need to sell quickly, I'll offer to list it or refer it to another agent. I already do this for any lead that calls me with that situation.
2. If the house is a fixer that fits my criteria, I would ask to speak to a family member and coordinate things with them. Maybe a son, daughter, niece? I'd end up offering much higher than the asking of 50k.
How much is too much profit? That's a tough question... It depends. I've seen fixers that make my head spin. I would want to make a lot more on those compared to cosmetic rehabs whether I wholesale or flip them.
@Garth Kukla Well said! I try to position myself so that sellers call me last, after they've tried everything else. I'm only interested in doing business with motivated and educated sellers who know they can't do better than my offer. If I detect that there's even a question of that in their minds I won't do the deal.
Years ago I made the mistake of believing that since the guy I was doing a deal with was an intelligent young investor and I was making him nearly 15% more than he could get on the MLS, that he would be happy with that, but he wasn't. He wanted all of my profit too because: "Well, I could have just done what you did myself." So why didn't he? Oh right, he didn't have the knowledge or skill :P
Same thing with buyers. I don't like these flippers who are like: "I could have just got the deal myself." Well, go ahead then, why are you wasting my time?
- Flipper/Rehabber · Montgomery, NY · Member since 2016 · 2k+ posts · 1k+ votes8y
Originally posted by @Doug P.:
@Joe Splitrock I'll use short sentences since you seem to be having trouble understanding. Are you a REALTOR by chance?
House is worth $500,000.
I pay $500,000 + closing costs.
Seller nets $500,000.
Then you aren't a wholesaler and al of your comments are irrelevant... wholesalers don't buy houses, they wholesale. If you find a house that a flipper/landlord can buy for $500k, you (as the wholesaler) won't be locking the price in with the seller for $500k, you will probably try and get it under contract for significantly less (usually more than the 6% a realtor based transaction garners).
I'm not sure what you are arguing here as your most recent comments are not about wholesaling, they are about buying properties...
- Anchorage, AK · Member since 2018 · 20 posts · 8 votes8y
I think Flexibility and options are the key aspects of wholesaling and the opportunity to find owners who are willing to sell their properties for a discounted price, should not be overlooked, countless hours and money is spent on finding leads and potential home owners. Wholesaling is a skill and art when done correctly.
@Brian Pulaski The terms of the contract are the same whether I close or assign.
- 8yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Originally posted by @Doug P.:
@Joe Splitrock If your brain is half as smart as your mouth you should be able to tell me how I can buy a house for market value and still make money.
@Erik W. No tricks regarding the definition of the word "worth". I'm talking about the price the seller can get on the open market, the value the appraiser pins to it, or the value the bank will base their loan on. I know that the real estate market is fluid and those 3 values are commonly all different, but for the sake of this discussion, let's assume it's possible to pin down an exact dollar value for the property at this moment and that value is $500k.
In practice, I agree with you that "value" or "worth" is highly subjective and I would never attempt to pinpoint that number so precisely. I mean think about it, a $500k house on the MLS can easily sell for a 20% range ($450-$550k) depending on market conditions, season, timing, location, competition between buyers, competency of the agents involved, staging, cleanliness. Hell, even the way the house smells.
However, like I said. For the sake of this discussion, let's assume that we can all agree the house is worth $500k and that is what the wholesaler has it under contract for.
There are several ways the wholesaler can make money in this scenario and I'm curious whether Joe can come up with even one.
@Pratik P. No kidding! There's a realty here that charges 0.59% for full listing representation. Never mind all the $99 flat fee listings. The thing is the buyer's agent actually does all the work of showing and selling. There's really no need for a listing agent at all unless the seller doesn't want/have time to negotiate for themselves, in which case the listing agent is doing for the seller exactly what a wholesaler does for the flipper. If listing agents were honest they would be promoting themselves like maids. Sure you can clean your house yourself, but it's easier to hire someone to do it. Instead listing agents behave like sellers will be murdered and have their children sold into slavery if they don't have a REALTOR represent them LOL!
Doug that's the kettle calling the pot black .. your actually quite rude and bring no value as to what I see other than non sense statements.... I thought Joe was asking you legit questions.. Joe is a first class guy if you ever read any of his other posts..
But be that as it may thats the great thing about BP we can all have our opinions and share them. Just no need for name calling on your part..
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