Wholesale Question - Disclose to seller?

Question

Hey guys, newer to bigger pockets. We are currently investing in some smaller multi-family properties and doing some minor fix and flip rehabs to provide additional cash flow for reinvestment. We recently built a website and it is generating a decent number of leads. We are looking to start wholesaling a few deals, mainly heavier flips that we normally pass on as we are not wanting to park cash anywhere for too long.

I am curious for those of you who wholesale, do you disclose to the seller that you are going to wholesale the property. If so, would you be willing to provide an example of how that conversation goes?

Thanks for all the help!

James Watson

I am curious for those of you who wholesale, do you disclose to the seller that you are going to wholesale the property.  If so, would you be willing to provide an example of how that conversation goes?

Thanks for all the help!

James Watson

James Watson · Answer

@Barry Pekin Awesome!  Thank you for the reply.  I have always thought disclosing would be best, just wasn’t sure how that happened without coming off the wrong way.

I like your example you provided.  Thanks a ton!

Barry Pekin · Answer

@James Watson,

Yes and No.  Yes, I would disclose.  Any real estate deal starts with building rapport, and building rapport doesn't start with deception.  No, I can't really provide an example of that conversation.  First, I have to start having those conversations, and second, I probably wouldn't get into that nitty gritty stuff until I had that rapport and was well into the conversation of buying their house.

Honestly, since you keep some and want to wholesale some, I think you could simply state that, "Depending on the details of your property and situation, I might be the one buying your home, or I might be bringing someone else in if it doesn't meet my criteria.  But don't worry, I only work with reputable people.  I will make sure you are treated well."