Why do so many new people want to wholesale?
Kansas City, KS · Member since 2018 · 67 posts · 70 votes
Why do so many new people want to wholesale?
Most Popular Reply
Wholesaler/Investor · Dallas, TX · Member since 2018 · 260 posts · 222 votes
7yI feel that many that get into wholesaling because they do believe the hype that it is easy money. While on the surface this seems to be true, it is only easy if you put the work into it. You have to treat wholesaling like a business, not a hobby. This means you have to be willing to invest real money and real time. You have to create efficient and intelligent systems to handle all aspects of wholesaling properties. Without systems in place, you will spend an enormous of amount of time, wasting your time.
1. Hands down the highest ROI of any form of real estate investing, and it's not even close.
On average, the ROI is around 5x, presuming your CAC is well managed and you average $5,000 in wholesale fees, on SFR. The very skilled negotiators, can reach 7-8X ROI.
2. In the right market, a 7 figure income is not unreachable. All you need is to average 16-17 properties per month, at $5,000 per, for a 7 figure income. In the right market, this is not hard to do, with systems in place.
3. Get in front of deals that many claim don't exist in certain markets, like Dallas. So if you have multiple strategies in play, you open yourself to many more options.
4. The strategy with the absolute least amount of risk involved. No contractors ripping you off. No appraisers having a bad day. No effect from a sudden drop in the market. No unexpected repairs. No property managers ripping you off. No tenants making your property look like a 12 month party zone.
5. The cheapest form of education into Real Estate, that money can buy. By default, you will become a virtual expert in home repairs, with enough time. After you look at a few dozen homes, it all paints a picture. You then become capable of breaking down the cost of repairs, by simply looking at quality pictures. This is a rare gift, but in some scenarios, you don't have much time to pull the trigger on a property. Those with real house knowledge, will never sweat their decision, others simply walk from the deal.
6. Build a very powerful networking team. When you become a name in your market, you will have access to everything you need to build upon your wholesaling business. Whether it is private money, brokers, insurance agents, contractors, title companies that can perform miracles with a complicated close, lenders and so on. All of this is valuable information, that take the traditional REI years to gather. A wholesaler can compile this data, in months.
7. In can be argued that high volume wholesalers have a better pulse on the market, than most RE agents. Why? Wholesaling is about crunching data, this is a daily task. The HV wholesaler can look at a 50+ properties a month, all over the city. We have a really good idea on ARV, without turning on the computer. You only get this comfortable with the market, by constantly being in the market.
8. Wholesalers seem to "fall" into those golden egg deals, regularly. For wholesalers, these are not a daily thing, but occur much more often than the traditional REI.
However, very little of this is possible, if you don't treat it like a business. It takes a considerable commitment in both time and money, to establish your systems. Once the systems are in place, you will need to become an expert at time management, to handle the volume. You have to constantly research the market to look for changes, both up and down. You have to be willing to either hire and train employees to assist you, or turn too VA to keep costs down. You have to have excellent organizational skills. You have to have enormous patience, as you will not always be dealing with the friendliest folks.
You need real knowledge to handle a multitude of scenarios (the chain of heirships, divorces, MIA person on title, family conflicts) to name a few. This knowledge helps you secure the deal, where those without it, stand no chance. This business is about solving a problem for that homeowner. Who stands a better chance at the table? Person A: Let me call my title company and see what they say, and I will get back to you. Person B: Here is "exactly" what will happen in this scenario, you have nothing to worry about.
The common misconception is that wholesaling is not investing or is less than the rest. The reality is quite the opposite. No traditional REI invests near as much time into marketing, market research, renovation costs, network building, dealing with complex title issues then that of a HV wholesaler.
John
28 Replies
- Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes7y
@Jonathan W. Low barrier to entry (supposedly). Most wholesalers have no money but want to invest in real estate so they wholesale. Find out wholesaling is very difficult so they eventually quit and move on to something else like “dropshipping” as they continually try to get rich.
The smart investor does what you’re doing. Maximize earned income. Save it. Invest it. Do that for 25 plus years and you’re almost guaranteed to be rich. But no one wants to wait that long so they try this other stuff (that doesn’t work for 99 percent of people)
- Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes7y
No money, no education, no oversight, and overnight millions. Why NOT become a "wholesaler" LOL!
- 7yAlexander FelicePro MemberGuy with Great Hair · Austin, TX · Member since 2013 · 2k+ posts · 4k+ votes
First, I think the gap between those that talk about wholesaling and those that actually do it is massive. So while lots of people want to do wholesaling, few do. Then the gap between those that wholesale 1-5 deals and those that stick with it for the long haul is even bigger.
My guess is there is a <5% conversion rate between those that talk and those that do.
The barrier to entry for wholesaling is technically zero. Drive around and find a dumpy house, convince the owner to let you contract it, sell to a buyer. In reality that isn't feasible on a repeatable basis, it will require an investment into the business, but the illusion of needing no money and making 'easy' capital on the back of hard work is appealing.
The best wholesaler I know is bailing on it after 2 years of it. why? because just the reason you said, it's a job it's not investing. There is no passive income, there are no tax benefits, and it doesn't create wealth or cash flow. So of the small amount of people who actually step up and do some profitable wholesaling it seems a high percentage of them quit soon after from burnout.
TLDR: talk is cheap, so you'll hear a lot more of it
- Rental Property Investor · Member since 2018 · 483 posts · 956 votes7y
Originally posted by @Jonathan W.:
Why do so many new people want to wholesale to get started in real estate? Is it because all the guru's talk about it making it seem great. To me, it looks like it sucks. I would rater get a 2nd job at a good rate to make more money. This would allow me to invest in more properties.
I just want to know everyones reason behind it.
I currenty have a w2 job, 2 side jobs, and own 2 triplexes and looking for more. I am really looking hard at buying other businesses using SBA loans instead of RE right now. I also have a wife and 5 kids to keep up with.
Look foreward to the discussion.
Jon
Because they have no money, no drive to work hard and save money to invest. I worked 2 jobs for 23 years and retired at 42. I have been retired for 11 years now and I'll never run out of money because we have 8 streams of income.
We don't live on any of our rental income it goes back into more investments. When I get an off market deal that doesn't meet my criteria I don't wholesale it. I pass it off to one of my friends that invest in that space for no fee. Well they sometimes buy me a nice cigar but it's not required.
- 7yKenneth GarrettPro MemberInvestor · Florida Panhandle/Illinois · Member since 2016 · 4k+ posts · 3k+ votes
Wholesaling requires a great buyers list, fantastic deals that have enough fat in them to make money on the wholesale and have enough for the investor.
Wholesaling sounds like a way to get started, but very few can make it. No money down in theory. Some actually close on the deal and sell it the next day. Some areas do not allow the double closing the same day. So much for no money down. It sounds easy but to execute it properly it takes work.
- Wholesaler/Investor · Dallas, TX · Member since 2018 · 260 posts · 222 votes7y
I feel that many that get into wholesaling because they do believe the hype that it is easy money. While on the surface this seems to be true, it is only easy if you put the work into it. You have to treat wholesaling like a business, not a hobby. This means you have to be willing to invest real money and real time. You have to create efficient and intelligent systems to handle all aspects of wholesaling properties. Without systems in place, you will spend an enormous of amount of time, wasting your time.
1. Hands down the highest ROI of any form of real estate investing, and it's not even close.On average, the ROI is around 5x, presuming your CAC is well managed and you average $5,000 in wholesale fees, on SFR. The very skilled negotiators, can reach 7-8X ROI.
2. In the right market, a 7 figure income is not unreachable. All you need is to average 16-17 properties per month, at $5,000 per, for a 7 figure income. In the right market, this is not hard to do, with systems in place.
3. Get in front of deals that many claim don't exist in certain markets, like Dallas. So if you have multiple strategies in play, you open yourself to many more options.
4. The strategy with the absolute least amount of risk involved. No contractors ripping you off. No appraisers having a bad day. No effect from a sudden drop in the market. No unexpected repairs. No property managers ripping you off. No tenants making your property look like a 12 month party zone.
5. The cheapest form of education into Real Estate, that money can buy. By default, you will become a virtual expert in home repairs, with enough time. After you look at a few dozen homes, it all paints a picture. You then become capable of breaking down the cost of repairs, by simply looking at quality pictures. This is a rare gift, but in some scenarios, you don't have much time to pull the trigger on a property. Those with real house knowledge, will never sweat their decision, others simply walk from the deal.
6. Build a very powerful networking team. When you become a name in your market, you will have access to everything you need to build upon your wholesaling business. Whether it is private money, brokers, insurance agents, contractors, title companies that can perform miracles with a complicated close, lenders and so on. All of this is valuable information, that take the traditional REI years to gather. A wholesaler can compile this data, in months.
7. In can be argued that high volume wholesalers have a better pulse on the market, than most RE agents. Why? Wholesaling is about crunching data, this is a daily task. The HV wholesaler can look at a 50+ properties a month, all over the city. We have a really good idea on ARV, without turning on the computer. You only get this comfortable with the market, by constantly being in the market.
8. Wholesalers seem to "fall" into those golden egg deals, regularly. For wholesalers, these are not a daily thing, but occur much more often than the traditional REI.
However, very little of this is possible, if you don't treat it like a business. It takes a considerable commitment in both time and money, to establish your systems. Once the systems are in place, you will need to become an expert at time management, to handle the volume. You have to constantly research the market to look for changes, both up and down. You have to be willing to either hire and train employees to assist you, or turn too VA to keep costs down. You have to have excellent organizational skills. You have to have enormous patience, as you will not always be dealing with the friendliest folks.
You need real knowledge to handle a multitude of scenarios (the chain of heirships, divorces, MIA person on title, family conflicts) to name a few. This knowledge helps you secure the deal, where those without it, stand no chance. This business is about solving a problem for that homeowner. Who stands a better chance at the table? Person A: Let me call my title company and see what they say, and I will get back to you. Person B: Here is "exactly" what will happen in this scenario, you have nothing to worry about.
The common misconception is that wholesaling is not investing or is less than the rest. The reality is quite the opposite. No traditional REI invests near as much time into marketing, market research, renovation costs, network building, dealing with complex title issues then that of a HV wholesaler.
John - Member since 2019 · 11 posts · 5 votes7y
how do you give this post a thumbs down
- Rental Property Investor · Hawthorne, CA · Member since 2018 · 655 posts · 900 votes7y
You write a narrative explaining that you disagree with everything that was written before and then you explain your position with concrete examples to try and convince the reader on the other side that you actually have valid points to explain.
This cannot be done with a simple thumbs down.
I am just answering your question. I don't have a take because I never did wholesaling before.
I suspect that the original poster is referring to the countless people inquiring about wholesaling on these forms.
I ask the same question about people who get on here and there first post is "How do I get out of the rat race".
I would love to read your take on wholesaling, I like reading different opinions because it it good for learning.
- 7yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
wholesaling successfully and by that i mean making at least 100 to 200k a year net.. is very tough.
and those that do it and make even more than that.. well they are highly skilled vertically integrated and have staff.
And monster marketing budgets etc.. However the same money drive and skills that these people possess would make them winners in about any kind of business they would like to do.
Its like Top Brokers that have a large team and make 500k to millions a year.. same thing.. drive smarts etc.
the solo I have no money wholesaler is just a very tough gig.. and in addition it really depends on your market. wholesaling to work there needs to be distressed properties and lots of them..
- Investor · Richmond, VA · Member since 2016 · 1k+ posts · 2k+ votes7y
We just signed another deal with a brand new wholesaler yesterday-- we were his first clients, and it was pretty obvious he was inexperienced, but who cares-- what I care about is the deal! I met him at a local real estate meeting last month, told him the area I wanted, and the price I wanted. He delivered! He will be getting $3,500 cash when we close, for what-- taking 1-2 hours to show us the house? Earlier this year we did a bigger deal where the wholesaler got like $7,500 for the same 1-2 hours---Who wouldn't want to be a wholesaler?!
Wholesalers provide a really crucial service, in that they get the crappy houses sold to investors who will make them great again-- the more wholesalers the better IMO! It's not for everyone, and just because it's not for you (or me), doesn't mean it won't be great for others.
- Developer · NY/NJ/PA · Member since 2018 · 758 posts · 935 votes7y
Originally posted by @Clifford Paul:
Originally posted by @Jonathan W.:
Why do so many new people want to wholesale to get started in real estate? Is it because all the guru's talk about it making it seem great. To me, it looks like it sucks. I would rater get a 2nd job at a good rate to make more money. This would allow me to invest in more properties.
I just want to know everyones reason behind it.
I currenty have a w2 job, 2 side jobs, and own 2 triplexes and looking for more. I am really looking hard at buying other businesses using SBA loans instead of RE right now. I also have a wife and 5 kids to keep up with.
Look foreward to the discussion.
Jon
Because they have no money, no drive to work hard and save money to invest. I worked 2 jobs for 23 years and retired at 42. I have been retired for 11 years now and I'll never run out of money because we have 8 streams of income.
We don't live on any of our rental income it goes back into more investments. When I get an off market deal that doesn't meet my criteria I don't wholesale it. I pass it off to one of my friends that invest in that space for no fee. Well they sometimes buy me a nice cigar but it's not required.
Kind of a broad generalization of the whole business plan of wholesalers.
I don't wholesale, but as a flipper I see deals constantly. I have flipped contracts and wholesaled deals away that didn't fit my needs all the time. Always made a substantial fee. It's easy money if done correctly and if you are already entrenched in the business.Just being a wholesaler doesn't seem to work for most people, but there are a few out there that are worth their weight in gold, just like a good agent. 5% of them do 90% of the business. Some flippers hate these wholesalers for no reason. If a wholesaler brings you a good deal & the numbers work, who cares how much he is making.
- 7yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Originally posted by @Linda S.:
We just signed another deal with a brand new wholesaler yesterday-- we were his first clients, and it was pretty obvious he was inexperienced, but who cares-- what I care about is the deal! I met him at a local real estate meeting last month, told him the area I wanted, and the price I wanted. He delivered! He will be getting $3,500 cash when we close, for what-- taking 1-2 hours to show us the house? Earlier this year we did a bigger deal where the wholesaler got like $7,500 for the same 1-2 hours---Who wouldn't want to be a wholesaler?!
Wholesalers provide a really crucial service, in that they get the crappy houses sold to investors who will make them great again-- the more wholesalers the better IMO! It's not for everyone, and just because it's not for you (or me), doesn't mean it won't be great for others.
Linda I really doubt these guys only spend and hour or two.. what about marketing costs.. ?? not saying they cant make money but all business's have overhead.. so yes you see gross income on something you that you may feel takes a few hours.
WE deal with that as brokers all the time. at least in our market were our average sales are 500k and checks are 10 to 30k.. and buyers and sellers thinking shoot they made that and only put 10 hours into the deal. LOL..
One issue you have now for you guys that use these folks.. is that with so many a lot of them dont know a deal so they tie them up for way more money than anyone will pay.. not sure that helps the market as a whole.. WE see that all the time on BP were deals that are brought by wholesalers are simply full retail
- Developer · NY/NJ/PA · Member since 2018 · 758 posts · 935 votes7y
Originally posted by @Jay Hinrichs:
Originally posted by @Linda S.:
We just signed another deal with a brand new wholesaler yesterday-- we were his first clients, and it was pretty obvious he was inexperienced, but who cares-- what I care about is the deal! I met him at a local real estate meeting last month, told him the area I wanted, and the price I wanted. He delivered! He will be getting $3,500 cash when we close, for what-- taking 1-2 hours to show us the house? Earlier this year we did a bigger deal where the wholesaler got like $7,500 for the same 1-2 hours---Who wouldn't want to be a wholesaler?!
Wholesalers provide a really crucial service, in that they get the crappy houses sold to investors who will make them great again-- the more wholesalers the better IMO! It's not for everyone, and just because it's not for you (or me), doesn't mean it won't be great for others.
Linda I really doubt these guys only spend and hour or two.. what about marketing costs.. ?? not saying they cant make money but all business's have overhead.. so yes you see gross income on something you that you may feel takes a few hours.
WE deal with that as brokers all the time. at least in our market were our average sales are 500k and checks are 10 to 30k.. and buyers and sellers thinking shoot they made that and only put 10 hours into the deal. LOL..
One issue you have now for you guys that use these folks.. is that with so many a lot of them dont know a deal so they tie them up for way more money than anyone will pay.. not sure that helps the market as a whole.. WE see that all the time on BP were deals that are brought by wholesalers are simply full retail
lmao this is so true. We had this on the CRE brokerage side too. People would think wow commission checks of $100k+ are amazing, meanwhile it took you 80+ hr/week + marketing budget + pitch budget + entertainment budget; etc etc, to be able to hit those numbers.
- 7yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Originally posted by @Syed H.:
Originally posted by @Clifford Paul:
Originally posted by @Jonathan W.:
Why do so many new people want to wholesale to get started in real estate? Is it because all the guru's talk about it making it seem great. To me, it looks like it sucks. I would rater get a 2nd job at a good rate to make more money. This would allow me to invest in more properties.
I just want to know everyones reason behind it.
I currenty have a w2 job, 2 side jobs, and own 2 triplexes and looking for more. I am really looking hard at buying other businesses using SBA loans instead of RE right now. I also have a wife and 5 kids to keep up with.
Look foreward to the discussion.
Jon
Because they have no money, no drive to work hard and save money to invest. I worked 2 jobs for 23 years and retired at 42. I have been retired for 11 years now and I'll never run out of money because we have 8 streams of income.
We don't live on any of our rental income it goes back into more investments. When I get an off market deal that doesn't meet my criteria I don't wholesale it. I pass it off to one of my friends that invest in that space for no fee. Well they sometimes buy me a nice cigar but it's not required.
Kind of a broad generalization of the whole business plan of wholesalers.
I don't wholesale, but as a flipper I see deals constantly. I have flipped contracts and wholesaled deals away that didn't fit my needs all the time. Always made a substantial fee. It's easy money if done correctly and if you are already entrenched in the business.Just being a wholesaler doesn't seem to work for most people, but there are a few out there that are worth their weight in gold, just like a good agent. 5% of them do 90% of the business. Some flippers hate these wholesalers for no reason. If a wholesaler brings you a good deal & the numbers work, who cares how much he is making.
its goes to each individuals moral and ethics.. and then you think of the seller is your mother or father.. how would you feel if they sold their 100k home that could easily be put on the market for 50k and the wholesaler ripped a 50k fee.. it happens those are the ones I just cant be part of.. no matter how much I could make..
I had one in Charleston a few years back they bring it to me at 190k i say yes. ( tear down i want the lot).. I do basic research and find a recorded option to buy at 100k.. I go back to them and say hey guys this is a single lady her one asset dont you think 90k is a little rich. I said i will give you 6% or basically 12k and the seller will net closer to 170k which i am sure she desperately needs.. they balk I say fine i pass I just cant knowingly be a party to this.. they list it for 265k on MLS . does not sell .. then they come back to me.. by then the title work was in and lo and behold its in foreclosure and the payoff is 206k.. LOL.. so they had no clue.. at first they thought they had a big score. So i said OK boys i will give U 2k and cash it out.. which i did I went on to build a 750k house there.. which turned out to be a nice deal for us.. So at least they made 2k.. LOL
- Rental Property Investor · St. Petersburg, FL · Member since 2017 · 3k+ posts · 4k+ votes7y
@Linda S. And this is why everyone wants to be a wholesaler....
People are under the impression that you make thousands of dollars for an hour or two's worth of work.
Wholesalers that make real money spend a ton on marketing, are constantly networking. Trying to work deals day and night. Get rejected 99% of the time, but have the drive to keep going.
Conservatively, it probably takes several hundred hours of work to get a deal, more if you are new.
- 7yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Originally posted by @Syed H.:
Originally posted by @Jay Hinrichs:
Originally posted by @Linda S.:
We just signed another deal with a brand new wholesaler yesterday-- we were his first clients, and it was pretty obvious he was inexperienced, but who cares-- what I care about is the deal! I met him at a local real estate meeting last month, told him the area I wanted, and the price I wanted. He delivered! He will be getting $3,500 cash when we close, for what-- taking 1-2 hours to show us the house? Earlier this year we did a bigger deal where the wholesaler got like $7,500 for the same 1-2 hours---Who wouldn't want to be a wholesaler?!
Wholesalers provide a really crucial service, in that they get the crappy houses sold to investors who will make them great again-- the more wholesalers the better IMO! It's not for everyone, and just because it's not for you (or me), doesn't mean it won't be great for others.
Linda I really doubt these guys only spend and hour or two.. what about marketing costs.. ?? not saying they cant make money but all business's have overhead.. so yes you see gross income on something you that you may feel takes a few hours.
WE deal with that as brokers all the time. at least in our market were our average sales are 500k and checks are 10 to 30k.. and buyers and sellers thinking shoot they made that and only put 10 hours into the deal. LOL..
One issue you have now for you guys that use these folks.. is that with so many a lot of them dont know a deal so they tie them up for way more money than anyone will pay.. not sure that helps the market as a whole.. WE see that all the time on BP were deals that are brought by wholesalers are simply full retail
lmao this is so true. We had this on the CRE brokerage side too. People would think wow commission checks of $100k+ are amazing, meanwhile it took you 80+ hr/week + marketing budget + pitch budget + entertainment budget; etc etc, to be able to hit those numbers.
I have brokered a few MF in the 5 mil plus range and enjoyed the 100k checks.. You work for those.. no doubt.
One of the ones that sticks out for me was the time I listed 22 duplex's in Vancouver Washington.. builder was in trouble and wanted them off the books I told him fine I will charge 15% and I will either sell them all in 90 days or less. these were 200k each.. And we did it.. but what did I do to get that. I did a road show I spent close to 100k in marketing up front with no guarantee of success. I was on radio TV and new print in San Francisco .. then rented a huge room got 300 people in there and sold them all in a weekend.. But I had the 100k to risk.. not everyone can do that.. So we had a nice pay day on that one for sure.. and the properties did well are probably worth close to double that now.
- Developer · NY/NJ/PA · Member since 2018 · 758 posts · 935 votes7y
Originally posted by @Jay Hinrichs:
Originally posted by @Syed H.:
Originally posted by @Clifford Paul:
Originally posted by @Jonathan W.:
Why do so many new people want to wholesale to get started in real estate? Is it because all the guru's talk about it making it seem great. To me, it looks like it sucks. I would rater get a 2nd job at a good rate to make more money. This would allow me to invest in more properties.
I just want to know everyones reason behind it.
I currenty have a w2 job, 2 side jobs, and own 2 triplexes and looking for more. I am really looking hard at buying other businesses using SBA loans instead of RE right now. I also have a wife and 5 kids to keep up with.
Look foreward to the discussion.
Jon
Because they have no money, no drive to work hard and save money to invest. I worked 2 jobs for 23 years and retired at 42. I have been retired for 11 years now and I'll never run out of money because we have 8 streams of income.
We don't live on any of our rental income it goes back into more investments. When I get an off market deal that doesn't meet my criteria I don't wholesale it. I pass it off to one of my friends that invest in that space for no fee. Well they sometimes buy me a nice cigar but it's not required.
Kind of a broad generalization of the whole business plan of wholesalers.
I don't wholesale, but as a flipper I see deals constantly. I have flipped contracts and wholesaled deals away that didn't fit my needs all the time. Always made a substantial fee. It's easy money if done correctly and if you are already entrenched in the business.Just being a wholesaler doesn't seem to work for most people, but there are a few out there that are worth their weight in gold, just like a good agent. 5% of them do 90% of the business. Some flippers hate these wholesalers for no reason. If a wholesaler brings you a good deal & the numbers work, who cares how much he is making.
its goes to each individuals moral and ethics.. and then you think of the seller is your mother or father.. how would you feel if they sold their 100k home that could easily be put on the market for 50k and the wholesaler ripped a 50k fee.. it happens those are the ones I just cant be part of.. no matter how much I could make..
I had one in Charleston a few years back they bring it to me at 190k i say yes. ( tear down i want the lot).. I do basic research and find a recorded option to buy at 100k.. I go back to them and say hey guys this is a single lady her one asset dont you think 90k is a little rich. I said i will give you 6% or basically 12k and the seller will net closer to 170k which i am sure she desperately needs.. they balk I say fine i pass I just cant knowingly be a party to this.. they list it for 265k on MLS . does not sell .. then they come back to me.. by then the title work was in and lo and behold its in foreclosure and the payoff is 206k.. LOL.. so they had no clue.. at first they thought they had a big score. So i said OK boys i will give U 2k and cash it out.. which i did I went on to build a 750k house there.. which turned out to be a nice deal for us.. So at least they made 2k.. LOL
Lol wow.
I only deal with reputable wholesalers that won’t waste my time. Usually it’s not a massive wholesale fee. But I have paid $20-$50k on houses that cost more ($250-$600k). Over here a lot of the “wholesale/contract flips” deals are coming from foreclosure sales and from distressed owners.
If someone is asking $100k, in my experience, something shady is going on. Like short sales, with massive fees to the homeowner and lawyer.
- Investor · Richmond, VA · Member since 2016 · 1k+ posts · 2k+ votes7y
Okay, sorry I guess I should have put more detail in my post--- yes, I know it's thousands in marketing/emailing/etc. I know it's hundreds of hours--- it's definitely a lot of work and I'm sure there is a lot of stress/failures. I couldn't personally deal with the amount of rejection and would probably give up like the majority. It's absolutely a lot of work, a lot of time, a lot of stress, etc.
All I'm saying is simplistically, why are people doing it-- because there are wholesalers out there making money. I'm a little fish, so I'm not doing huge mulit-million dollar deals. I just know my market, and work a lot with wholesalers and appreciate the value they bring!
- Member since 2019 · 11 posts · 5 votes7y
Originally posted by @Damaso Bautista:
You write a narrative explaining that you disagree with everything that was written before and then you explain your position with concrete examples to try and convince the reader on the other side that you actually have valid points to explain.
This cannot be done with a simple thumbs down.
I am just answering your question. I don't have a take because I never did wholesaling before.
I suspect that the original poster is referring to the countless people inquiring about wholesaling on these forms.
I ask the same question about people who get on here and there first post is "How do I get out of the rat race".
I would love to read your take on wholesaling, I like reading different opinions because it it good for learning.
- Member since 2019 · 11 posts · 5 votes7y
i just find it very discoraging that you guys have everything negative to say about wholesaling as a newbie i want to do wholesaling as a starting point to build capital..not to get rich quick..everyone is in a different position in life . im just learning about real estate and wholesaling seems to be the way to get in .i understand that many fail but why knock someone for wanting to enter into real state going the wholesale route
- Rental Property Investor · Hawthorne, CA · Member since 2018 · 655 posts · 900 votes7y
What you said is what makes America such a great country. You and anyone else who is here can take whatever route they want to financial success.
Anyone can have their own opinion about anything. Anyone can choose their own path. Use this as motivation to work hard at crafting your plan, work hard at implementing your plan, become the most successful business person that you allow yourself to be and then look back at this conversation in 10 years and see how you fair.
I hope you become the most successful real estate person ever. That would make me happy. Never let anyone elses opinion discourage you from your own success. In the same breath don't ever blame anyone else if you don't succeed.
Good Luck and much success in life!
- New to Real Estate · Charlotte NC · Member since 2018 · 40 posts · 8 votes7y
low risk and usually 0 down to get in, which causes a lot of people to try to attempt to get in and not take it serious
which causes the ones that actually do it to get a bad rep.
- Member since 2019 · 11 posts · 5 votes7y
Originally posted by @Damaso Bautista:
What you said is what makes America such a great country. You and anyone else who is here can take whatever route they want to financial success.
Anyone can have their own opinion about anything. Anyone can choose their own path. Use this as motivation to work hard at crafting your plan, work hard at implementing your plan, become the most successful business person that you allow yourself to be and then look back at this conversation in 10 years and see how you fair.
I hope you become the most successful real estate person ever. That would make me happy. Never let anyone elses opinion discourage you from your own success. In the same breath don't ever blame anyone else if you don't succeed.
Good Luck and much success in life!
I really appreciate it i will do my best to learn as much as i can and implement action
Join the conversationCreate a free account to reply, vote on answers and follow this thread.