If buyer ask to come view a property that I have under contract

Wholesaling

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If buyer ask to come view a property that I have under contract

Darius Thompson

Property Manager · Louisville, KY · Member since 2015 · 17 posts · 4 votes

If I have a wholesale deal under contract, and I have a buyer but he wants to see the property first what should I do?

Technically I don’t own the property yet so I wouldn’t be able to let them view the inside

How does that work?

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Wayne Brooks

Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes

Well, since you apparently misled them into thinking you were Actually buying it.....you have to lie them and tell them your buyers are inspectors, contractors, funding partners, etc.

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Ilidio Cardoso
Real Estate Broker · Boston, MA · Member since 2017 · 55 posts · 22 votes
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@Darius Thompson
I don't know but definitely want to know more about the process.
0 Reply
Marcus House
Rental Property Investor · Woodbridge, VA · Member since 2018 · 87 posts · 26 votes
7y
I have never met a buyer that would buy a wholesale property sight unseen.
2 Reply
Brit Hale
Real Estate Agent · Joplin, MO · Member since 2018 · 112 posts · 96 votes
7y
@Darius Thompson if the current owner knows the situation and is open to it, might as well show it to them unless you plan to do any repairs. If the current owner doesn’t understand that or isn’t aware your plans, you might consider waiting until you close to avoid both confusion and potentially messing up a good deal you have if the current owner or your potential buyer can’t grasp it.
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Alex KhanPro Member
Specialist · Southeast Michigan · Member since 2015 · 300 posts · 244 votes
7y
@Darius Thompson you should have some type of inspection period in your contract with the seller. I always explain to the sellers that I work with a couple of different private partners and do joint ventures on my deals. So tell the seller its a one of your funding partners for your rehab if it’s needed or if no rehab is needed then tell them it’s a funding partner that you’re doing a walk through with. Your end buyer should know that you’re wholesaling the deal and not to be talking about numbers or prices etc in front of the homeowner and if they were to do something like that you know to only send them vacant properties in the future.
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Wayne Brooks
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
7y
Well, since you apparently misled them into thinking you were Actually buying it.....you have to lie them and tell them your buyers are inspectors, contractors, funding partners, etc.
7 Reply
Kyle Godbout
Investor · Omaha, NE · Member since 2015 · 366 posts · 184 votes
7y
@Darius Thompson
You should also take pics and maybe a video walkthrough when you get it under contract. That can be enough, many times, for the buyer to see and make an educated buying decision.
1 Reply
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
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Originally posted by @Alex Khan:

@Darius Thompson you should have some type of inspection period in your contract with the seller. I always explain to the sellers that I work with a couple of different private partners and do joint ventures on my deals. So tell the seller its a one of your funding partners for your rehab if it’s needed or if no rehab is needed then tell them it’s a funding partner that you’re doing a walk through with. Your end buyer should know that you’re wholesaling the deal and not to be talking about numbers or prices etc in front of the homeowner and if they were to do something like that you know to only send them vacant properties in the future.
what about the seller.. do you explain to them your just brokering the deal ??
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Alex KhanPro Member
Specialist · Southeast Michigan · Member since 2015 · 300 posts · 244 votes
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@Jay Hinrichs I’m not brokering anything. I buy cash and close on majority of my deals. The ones I wholesale out I let the seller know that I’m having a partner buy this from me.
It doesn’t make a difference to them at all when it comes down to the nitty gritty.
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Lydia R.
Investor · Austin TX · Member since 2016 · 1k+ posts · 2k+ votes
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@Darius Thompson First of all, no buyer is going to buy a property sight unseen, so you will absolutely need to let your buyer inspect the property. Second, if you have the property under contract then there is no reason not to let your buyer see the property. Is the property occupied? If you want to get it sold then you will need to figure out a way to let buyers see it.
1 Reply
John Thedford
Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
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This is definitely a brokering real estate without a license . No BS will change the facts
4 Reply
Kaylin Williams
Lindenwold, NJ · Member since 2018 · 10 posts · 0 votes
7y
@Darius Thompson you might want to add that to your contract. Maybe that you have right to access the property.
0 Reply
Kareem Thomas
Flipper/Rehabber · Bethlehem, PA · Member since 2009 · 17 posts · 18 votes
7y
@John Thedford you’re literally a miserable man .... this is all you do! Search for people that post about wholesaling so you can just talk nonsense..... be quiet we don’t care what you are saying!
5 Reply
Toby Chandler
Flipper/Rehabber · Spartanburg, SC · Member since 2019 · 32 posts · 33 votes
7y
@Alex Detroit I agree w you as long as you intend to close regardless of whether or not you get it wholesaled. You own the obligation/right to buy that house for the amount in the contract. If you sell the contract, you are selling the right to buy for said amount. You are still obligated to close it even if you don’t have a buyer.
My understanding is you’re not making a commission, you are making a profit by selling the contract. If you were brokering a deal it would be a commission.
Just call the occupant and see how they respond. They are usually cool w it.
1 Reply
John Thedford
Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
7y
Originally posted by @Kareem Thomas:

@John Thedford you’re literally a miserable man .... this is all you do! Search for people that post about wholesaling so you can just talk nonsense..... be quiet we don’t care what you are saying!
You cant stand the facts so you choose to attack me
0 Reply
Matt P.
Investor · Columbus, OH · Member since 2015 · 625 posts · 601 votes
7y
@Kareem Thomas lol @ clown come on man. I have bought from wholesalers so no issue there. I think most people's hang up with it is that a wholesaler has no fiduciary responsibility to anyone in the transaction and there is no governing body out there making sure wholesalers aren't operating like complete scum bags. So when you pair the fact that there are no standards of ethical conduct that wholesalers must abide by, they have no oversight and the fact that it's pretty much the wild west with these people going out and trying to rip as much equity as they can from a deal and it's not hard to see why people are against brokering without a license. There is a niche in the real estate game for moving real distressed property, no argument there. Personally I could care less how people make their money but you, as a reasonable person, have to be able to see both sides of this especially if your going to be operating in the gray IMO. Good luck with whatever it is you do.
1 Reply
John Thedford
Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
7y
Originally posted by @Kareem Thomas:
No you can’t stand the facts that it’s not illegal clown! Do you want my lawyer to call you to let you know that? Everybody else on here is exchanging great info, you’re literally the only person attacking people and being negative! Go play with your grandkids if you have any!
Brokering real estate without a license is illegal. The only clowns I see are the unlicensed broker cheerleaders shouting rah rah rah and promoting illegal unethical activities. Maybe their criminal records stop them from getting licensed LOL!!!
0 Reply
John Thedford
Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
7y
Originally posted by @Matt P.:

@Kareem Thomas lol @ clown come on man. I have bought from wholesalers so no issue there. I think most people's hang up with it is that a wholesaler has no fiduciary responsibility to anyone in the transaction and there is no governing body out there making sure wholesalers aren't operating like complete scum bags. So when you pair the fact that there are no standards of ethical conduct that wholesalers must abide by, they have no oversight and the fact that it's pretty much the wild west with these people going out and trying to rip as much equity as they can from a deal and it's not hard to see why people are against brokering without a license. There is a niche in the real estate game for moving real distressed property, no argument there. Personally I could care less how people make their money but you, as a reasonable person, have to be able to see both sides of this especially if your going to be operating in the gray IMO. Good luck with whatever it is you do.
Many brokers refer to them as "scabs" LOL, I prefer the terms FRAUDS AND SCAMMERS.
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Matt P.
Investor · Columbus, OH · Member since 2015 · 625 posts · 601 votes
7y
@John Thedford Haven't heard that term in years. I work in the investment industry but my dad and both grandfather's were and are lifelong Teamsters. Had some lean times when I was a kid when they were forced to strike. We hate scabs where I come from lol.
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Xavier Stanish
Real Estate Agent · Philadelphia, PA · Member since 2019 · 14 posts · 6 votes
7y
Yeah basically everyone is telling you the right things. See if sellers will allow you to walk someone through it (acting as a contractor or something along those lines). But definitely follow what Alex said, DO NOT talk numbers in front of the current owners
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John Thedford
Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
7y
Originally posted by @Xavier Stanish:

Yeah basically everyone is telling you the right things. See if sellers will allow you to walk someone through it (acting as a contractor or something along those lines). But definitely follow what Alex said, DO NOT talk numbers in front of the current owners
Deception is now the norm. Sad...
0 Reply
Lydia R.
Investor · Austin TX · Member since 2016 · 1k+ posts · 2k+ votes
7y
Being licensed doesnt magically make people behave ethically or adhere to any sort of code of conduct. Having a drivers license doest make people obey traffic laws. Having a real estate license means absolutely nothing if you are a shady person and your goal is to take advantage of people. I have seen licensed realtors in my market tell their clients that their house is only worth X so they could buy from the seller (their client) at a discount and then re-list at a higher price after doing no work! Is this behavior somehow acceptable because this individual is a licensed agent? No its shady as heck! Licensed or not doesnt change whats right and whats wrong. This will be a debate that goes on here on BP forever. But to this day no one who is anti wholesaler has been able to explain how being a licensed real estate agent makes it ok to be shady. Or how having a license somehow prevents shadiness? Its so easy to attack an individual or to make generic claims against wholesalers or copy and paste what some state legislator has published about wholesaling (because politicians are complete experts right?) but no one has actually used facts to explain why being an agent is somehow going to prevent unethical behavior.
2 Reply
John Thedford
Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
7y
Originally posted by @Lydia R.:

Being licensed doesnt magically make people behave ethically or adhere to any sort of code of conduct. Having a drivers license doest make people obey traffic laws. Having a real estate license means absolutely nothing if you are a shady person and your goal is to take advantage of people. I have seen licensed realtors in my market tell their clients that their house is only worth X so they could buy from the seller (their client) at a discount and then re-list at a higher price after doing no work! Is this behavior somehow acceptable because this individual is a licensed agent? No its shady as heck! Licensed or not doesnt change whats right and whats wrong. This will be a debate that goes on here on BP forever. But to this day no one who is anti wholesaler has been able to explain how being a licensed real estate agent makes it ok to be shady. Or how having a license somehow prevents shadiness? Its so easy to attack an individual or to make generic claims against wholesalers or copy and paste what some state legislator has published about wholesaling (because politicians are complete experts right?) but no one has actually used facts to explain why being an agent is somehow going to prevent unethical behavior.
There is no guarantee but there is oversight fines and license revocation. Unlicensed Brokers have no oversight. Furthermore agents don't have to walk in representing themselves as buyers when they are not. There are lots more dishonest wholesalers than there are dishonest agents because agents get fined and can lose their license.
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Joe SplitrockPro Member
Moderator
Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
7y
Originally posted by @Kareem Thomas:

No you can’t stand the facts that it’s not illegal clown! Do you want my lawyer to call you to let you know that? Everybody else on here is exchanging great info, you’re literally the only person attacking people and being negative! Go play with your grandkids if you have any!
In most states it is illegal to market a property you don't own unless you are a broker. I think some wholesalers don't understand the term marketing covers any sales activity. For example, showing a property to perspective buyer is marketing. Calling a buyers list and telling them you have a property under contract for sale is marketing. Sending pictures or video to a buyer is marketing. Even if you already know the buyer, it is still marketing. Even if you are buying with cash, you still can't market before you close.
Here is the bottom line, most wholesalers never get caught and they confuse that for meaning it is legal. Just know your state laws and state licensing requirements. Don't lie to sellers or misrepresent what you are doing.
2 Reply
Lydia R.
Investor · Austin TX · Member since 2016 · 1k+ posts · 2k+ votes
7y
Agents get fined if they get reported! The amount of oversight is laughable! If Agent Suzy tells homeowner Tim that his house $250,000 is worth 100k and has her friend/business partner/relative/fellow agent whoever bring an offer of 105k and advises Tim to take it and he does and has no idea that hes being completely scammed how does Suzy get penalized? Tim has no idea hes been completely screwed, he believed his agent was advising him correctly. Stuff like that happens all the time! Yes there is the possibility that if someone files a complaint you might get fined or eventually lose your license. Not a huge deterrent. Especially for those who are licensed but dont operate as a representative for a party in the transaction. Big wholesaler companies like Networth and New Western do it all the time. They have tons of bad reviews, all their acquisitions people are licensed agents. It means absolutely nothing. Unscrupulous people will behave in an unscrupulous manner no matter what. The day any Real Estate Commission devises and administers an integrity exam I will be the first one saying #teamgetlicensed
4 Reply
Joe SplitrockPro Member
Moderator
Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
7y
Originally posted by @Lydia R.:

Being licensed doesnt magically make people behave ethically or adhere to any sort of code of conduct. Having a drivers license doest make people obey traffic laws. Having a real estate license means absolutely nothing if you are a shady person and your goal is to take advantage of people. I have seen licensed realtors in my market tell their clients that their house is only worth X so they could buy from the seller (their client) at a discount and then re-list at a higher price after doing no work! Is this behavior somehow acceptable because this individual is a licensed agent? No its shady as heck! Licensed or not doesnt change whats right and whats wrong. This will be a debate that goes on here on BP forever. But to this day no one who is anti wholesaler has been able to explain how being a licensed real estate agent makes it ok to be shady. Or how having a license somehow prevents shadiness? Its so easy to attack an individual or to make generic claims against wholesalers or copy and paste what some state legislator has published about wholesaling (because politicians are complete experts right?) but no one has actually used facts to explain why being an agent is somehow going to prevent unethical behavior.
Driving without a drivers license can land you in jail. A licenced driver goes through both written testing and driving test, which proves their knowledge of the law.
Licensing just means you went through education and testing. So it means you were taught the right way to do something, but of course it is up to the individual if they follow what they learned. The problem with unlicensed people is they often never learned the legal way to do things.
As far as unethical behavior, if you are licensed you have been gone through ethics training and if you are reported for acting unethically, you can lose your license. A wholesaler has no ethics training and nothing to lose. Do you see the difference?
I guess what I don't understand is why people don't just get licensed. It costs a couple thousand dollars, maybe 80 hours of class work, testing and annual refresher training. It all seems helpful to me.
I do agree people need to quit the generic claims, because many wholesalers are licensed and state laws vary. So lumping everyone together is not right.
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