Is the wholesale deal lost?

12 Replies

I recently had a seller that I had built great raport with, give me some bad news... she was going to list her house. She told me she was either going to accept my offer or go list it with one of her buddies that's a real estate agent. I guess the buddy got in her ear enough cause she's going with her. Is that deal lost? Is there a way I could have persuaded her to go with me without increasing my offer price by a lot?

Is the agent going to list it for quite a bit more than you wanted to pay or were you planning on unlicensed brokering the deal?

Yes, the deal is lost.  No, you could not have persuaded her.  Usually (okay, almost always) sellers can net more by listing with a real estate agent than by selling to a wholesaler, particularly if the house is in okay to good condition.  Assuming you were being honest with her (disclosing you were going to find an end buyer to sell it to, being honest about market value, etc.), she probably just decided she wanted to net more by listing it and waiting a little longer.   Note, I'm assuming you had it under contract for significantly less than what it's going to be listed for.

Originally posted by @Charles Willie Harris :
Originally posted by @John Thedford:

Is the agent going to list it for quite a bit more than you wanted to pay or were you planning on unlicensed brokering the deal?

Are you looking to sue this man for fraud?

 I am not a party to this transaction. Lots of these scammers should be sued though. That is up to sellers if they can prove no money and no intent to close the deal.

 

@John Thedford

If your so against wholesaling & think wholesalers are "scammers" why are you following this category. I see you on almost every single post harassing people. Your not the one selling/buying the house, I don't understand why your so mad.

Originally posted by @Blanca S. Cornejo :

@John Thedford

If your so against wholesaling & think wholesalers are "scammers" why are you following this category. I see you on almost every single post harassing people. Your not the one selling/buying the house, I don't understand why your so mad.

This is a public forum open for discussion. BTW most of these people are not truly buyers but misrepresenting themselves as such.

 

Originally posted by @Blanca S. Cornejo :

@John Thedford

If your so against wholesaling & think wholesalers are "scammers" why are you following this category. I see you on almost every single post harassing people. Your not the one selling/buying the house, I don't understand why your so mad.

At risk of speaking for others, I don’t think John is against wholesalers per se, just against those who wholesale illegally and there is a big difference between the two. Just as driving is not illegal, there are ways to drive illegally.

 

Originally posted by @Will Barnard :
Originally posted by @Blanca S. Cornejo:

@John Thedford

If your so against wholesaling & think wholesalers are "scammers" why are you following this category. I see you on almost every single post harassing people. Your not the one selling/buying the house, I don't understand why your so mad.

At risk of speaking for others, I don’t think John is against wholesalers per se, just against those who wholesale illegally and there is a big difference between the two. Just as driving is not illegal, there are ways to drive illegally.

 

That is correct Will. We have legal licensed wholesalers in the area (haven't seen a real deal yet but that is another story). Here is what I am against:
1. Skirting laws and THEN violating brokerage laws. Licensees don't have that issue
2. Representing ones self as a buyer and then backing out if they cannot assign the deal
3. Misrepresenting values to a seller.

We have lots of BP posters with NO money yet they are signing contracts. That is a recipe for disaster and the one most often victimized is the seller. The State of FL regulators say that bringing an end buyer is BROKERING. The assignment clauses were never means as a work-around to broker without a license. There are legitimate reasons for the assignment clauses: one may choose a different name/entity to put the property in. One may choose to bring on a partner and use an LLC. These are just a couple.

 

Originally posted by @Tafon Mainsah :

I recently had a seller that I had built great raport with, give me some bad news... she was going to list her house. She told me she was either going to accept my offer or go list it with one of her buddies that's a real estate agent. I guess the buddy got in her ear enough cause she's going with her. Is that deal lost? Is there a way I could have persuaded her to go with me without increasing my offer price by a lot?

Look at it from the sellers POV. They can usually net a lot more $$ listing on the open market. So, unless there is extenuating circumstances, most sellers will list on the open market. The entire play of wholesalers is to buy under market value and sell at market  that split is lost equity to the seller.  

Sometimes sellers are ok with losing that equity  ( need money fast, etc) but usually once they understand they can make more listing that is what they will do  

So, by putting yourself in their shoes you will understand why and why the deal is most likely lost 


 

Originally posted by @Mary Mitchell :
Originally posted by @Tafon Mainsah:

I recently had a seller that I had built great raport with, give me some bad news... she was going to list her house. She told me she was either going to accept my offer or go list it with one of her buddies that's a real estate agent. I guess the buddy got in her ear enough cause she's going with her. Is that deal lost? Is there a way I could have persuaded her to go with me without increasing my offer price by a lot?

Look at it from the sellers POV. They can usually net a lot more $$ listing on the open market. So, unless there is extenuating circumstances, most sellers will list on the open market. The entire play of wholesalers is to buy under market value and sell at market  that split is lost equity to the seller.  

Sometimes sellers are ok with losing that equity  ( need money fast, etc) but usually once they understand they can make more listing that is what they will do  

So, by putting yourself in their shoes you will understand why and why the deal is most likely lost 




 I bought a deal a while back. Seller just wanted it GONE! I offered to list it for 158K or purchase it for 120K. It would have sold in the high 150's. Seller didn't want the hassle of listing it. It was tenant occupied. Rather than listing it the seller agreed to accept my 120K. They had to bring 70K to the closing table. Sometimes it is not about the money but rather getting rid of the headache. I get that!

 

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