Here in California, everyone is doing it. It's some what of a burned out sector for certain areas. It's caused for investors to buddy up with a R.E. agent, in order, to get the "in pocket" listings. Hence, causing for the wholesaler to use that agent for the re-sale; if it isn't, that they have an in house agent.
If you buddy-up with other investors, it's "no questions asked, here is your money and hand over the title". Properties are purchased in cash by a group/pair of investors. It's repaired with private investor money. Such as, Fund & Grow, that lends on a zero percent for 12 months. Once, the re-sale occurs, Fund & Grow is paid back, all investors get their profit and original cash invested. Keep in mind that there's plenty of tax write-off in all of this. Including, gas, lunch, mileage, remodel expenses, points, interest, etc.
To boot, the property can be sold before even under going rehab and already have a buyer lined up and waiting, ready for the purchase of a renevated property. This is done with a contract between the expected buyer and release from the 1st seller. Contracts can be lined up before the renovation even begins. Once, the rehab is finished...…. some investor/buyer may request that a selective tenant be placed, before handing the property to the new owner. This is speculative, as all deals vary.
I'll be honest, even some of the class "C" and "D" areas have become competitive due to these wholesalers. They can have up to multiple properties all at once. Some of this craze, has caused for me to go invest out of state.
Where ever you plan to purchase...……….. you must know your numbers, your risk, your budget, and your expected profit. If you don't know the industry, buddy with an investor that you can possibly follow and learn from. DO NOT TRY THIS, unless, you feel confident in what your doing. You can run a risk and loose your pants.