Questions I should be asking my wholesaler?

4 Replies

Hi guys, I am new to the real estate game. I am meeting with a wholesaler this week. They say they have great deals and a lot of there properties are not on the MLS. I figure it can not hurt to sit down and see what they have to offer. Are there any questions or concerns I should be asking or looking out for when I meet with them?

@James Walton Are you looking to buy/hold or flip? There's plenty of question that each rabbit hole could offer. As for them, ask them how they work? Sending out deals via text/email/calls? Do they put lock boxes on the contracted houses so you could go view them on your own? Do they typically assign their contracts or double close (if they assign it to you then they would need to provide a contract to you before signing their assignment FYI) What do you have available now? How many deals have you closed this year compared to last? Any JV or partners? Who does your closings (title/attorney)?

I'm a wholesaler in Birmingham, so I'm just regurgitating some questions asked by me. 

Hope that helps getting things started. 

@Jeremy Galloway hit it right on the head! I would also add on that you should ask them what deals they have closed in the past and ask them for some details on those deals so that you can see what numbers they work with, their level of detail, and if their deals make sense to you, because as you will see in this industry there are a lot of people who think they can make a quick buck and have absolutely no idea about finding a reasonable ARV, repair estimates ballpark, and/or calculate closing/holding/financing fees that buyers will incur.

Also, make sure that they actually have the original contract to the house if they're assigning it to you because some people try to wholesale other wholesalers' deals and it's a mess. But in the middle of all of the bad apples there are some legitimate and honest wholesalers out there.

Good luck brother :)