Can somebody please respond or point me to a post that will help me learn how to do proper due diligence on a wholesaler before doing a deal with him/her?
Hi @Brett Synicky . The best and simplest approach to vetting a wholesaler is to grill the last 3 or 4 investors who purchased a deal from them. For everything you want to know, those folks already have the answers. Be sure to at least buy them a cup of coffee when they give you the lowdown.
Really it comes down to each individual deal, and you have to evaluate very deal yourself. The wholesaler is simply selling paper - it's up to you to take the deal and monetize it.
I recently did a wholesale deal with an investor who completely screwed it up - instead of him making a quick 10k profit he decided to slowplay the thing by dragging his feet, taking 4 months to paint a 1200 ft SFR to end up walking away with only $3200. Does that situation make me a bad wholesaler? No - the deal was great when it started and had tons of potential, just so happens that investor kinda sucks at this game.
I don't care who the wholesaler is - if the deal has opportunity, the paper is clean, and the transaction is legal, then it might be a good deal for some of us - but not for all.
If it's not a good deal then it's not a good deal - even if jesus himself is the wholesaler.
Thanks for the responses. I thought about references and it seems that's the way to go, I just wish I could find one that the wholesaler doesn't supply.
Hi there! I realize this is an old thread, but if you find a deal you are interested in through a wholesaler, is it up to them to supply references from previous deals? I am eager and yet uncomfortable of the idea of depositing large amounts of cash for deals to someone I have not really vetted or who was personally referred to me.
I need to learn how these deals happen. I can educate myself on finding a good deal, but how is the escrow handled when the wholesaler takes your cash with the intention of buying the house they put the bid on?
Any help for this newbie is much appreciated!!