Wholesaling Real Estate Contracts

Rental Property Investor · Goldsboro, NC · Member since 2019 · 44 posts · 33 votes

Quick Auestion? What is the best contract for a Purchase & Sell Agreement ive seen alot but they are all diffrent. Even the ones for NC but i dont think its for someone Wholesaling. Another thing? How do i protect myself in the contract? How do i put it so i dont get stuck with the property? Or stuck having to pay it?

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Jerryll Noorden

Flipper/Rehabber · Wilton, CT · Member since 2015 · 4k+ posts · 4k+ votes

Originally posted by @John Thedford:

Originally posted by @Jerryll Noorden:

Originally posted by @Christopher Smith:

Don't mind him. I think a wholesaler killed his cat or something.

I am destroying a fraud this week. Sending a seller a copy of an ad on their house they think is sold. Should be fun exposing the crook!

Unlicensed broker frauds can't stand the truth and being exposed.

Honestly, I love that you take it upon yourself, to be the vigilante to expose the frauds. But may I suggest something.

I think, that you make too quick of an assumption that people are frauds. I have seen you attack people that asked a question about wholesaling, WHILE they have a real estate licence. Why not first figure out whether they are frauds or not before you go all out attacking them.

Just now someone asked if it is a good idea to have a website marketing for motivated sellers and your response was immediately that it is illegal marketing properties without a licence, but she was not at all even asking about marketing properties. She was asking how to FIND properties.

So sure dude, thank you for looking out for us, hell, get a pink cape and a mask if you like.. but calm down a bit no?

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Melanie Hartmann
Flipper/Rehabber · Baltimore, MD · Member since 2018 · 265 posts · 387 votes
6y
Originally posted by @John Thedford:
Originally posted by @Ola Dantis:
This thread is actually more interesting than what is on TV right now...

Better than Gilligan's Isle. Watch unlicensed brokers squirm when they cannot make a valid argument LOL! However, the SAD part is the victimization of the general public by these scammers. No doubt their motto is "ANYTHING for a buck". There is NO honor and NO ethics in skirting laws to broker without a license. I will be posting a copy of the letter I am sending to an unsuspecting seller that thinks their house is sold. The scammer put it under contract and is now advertising it on CL. Along with that I am filing a complaint with the state. Want to see how a deal can fall apart once an owner gets educated? Look for my post SHTF. It was a PLEASURE helping this seller and they still live in the house to this day. I will keep fighting and exposing these people for what they are!

Many wholesalers do operate under the notion that THEY are the buyers. However, not everyone! Every single contract that I have wholesaled, the seller KNEW we were wholesaling it. GASP! Yes, that is possible folks!
Also, if a seller agrees to a price and/or terms and receives EXACTLY what they wanted, regardless of whether the contract is wholesaled, I'm not seeing what the problem is. The issue really lays in inexperienced wholesalers making grandiose promises to sellers and not being able to follow through, leaving sellers worse off than before.
Once you have a reputation for being honest and credible, I really don't see the harm in wholesaling contracts when the sellers are aware.

10 Reply
John Thedford
Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
6y
Originally posted by @Melanie Hartmann:
Originally posted by @John Thedford:
Originally posted by @Ola Dantis:
This thread is actually more interesting than what is on TV right now...

Better than Gilligan's Isle. Watch unlicensed brokers squirm when they cannot make a valid argument LOL! However, the SAD part is the victimization of the general public by these scammers. No doubt their motto is "ANYTHING for a buck". There is NO honor and NO ethics in skirting laws to broker without a license. I will be posting a copy of the letter I am sending to an unsuspecting seller that thinks their house is sold. The scammer put it under contract and is now advertising it on CL. Along with that I am filing a complaint with the state. Want to see how a deal can fall apart once an owner gets educated? Look for my post SHTF. It was a PLEASURE helping this seller and they still live in the house to this day. I will keep fighting and exposing these people for what they are!

Many wholesalers do operate under the notion that THEY are the buyers. However, not everyone! Every single contract that I have wholesaled, the seller KNEW we were wholesaling it. GASP! Yes, that is possible folks!
Also, if a seller agrees to a price and/or terms and receives EXACTLY what they wanted, regardless of whether the contract is wholesaled, I'm not seeing what the problem is. The issue really lays in inexperienced wholesalers making grandiose promises to sellers and not being able to follow through, leaving sellers worse off than before.
Once you have a reputation for being honest and credible, I really don't see the harm in wholesaling contracts when the sellers are aware.

Are you licensed or an unlicensed broker skirting laws? Are you scamming your way out of contracts if you can't find a buyer? You are using purchase contracts as defacto listing agreements.

0 Reply
Sean Ybarra
Rental Property Investor · Redondo Beach, CA · Member since 2018 · 47 posts · 22 votes
6y
@John Thedford
That’s usually how whole selling is performed but why difference does it make if someone still pays you what you agreed upon for the property
0 Reply
John Thedford
Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
6y
Originally posted by @Sean Ybarra:
@John Thedford
That’s usually how whole selling is performed but why difference does it make if someone still pays you what you agreed upon for the property

What do you mean how it works? Scamming out of contracts? Skirting laws? Preying on uninformed sellers?
0 Reply
Charles Kao
Specialist · Grand Rapids, MI · Member since 2016 · 1k+ posts · 611 votes
6y
@Christopher Smith
There are a couple on bigger pockets file
place. Mine is a little different because in Michigan the contract itself is valuable consideration so I don't have an EMD section. If it says zero then they ask for it. Also I do have it default to both buyer and seller paying regular closing costs but many also say buyer pays.
2 Reply
Christopher Smith
OP
Rental Property Investor · Goldsboro, NC · Member since 2019 · 44 posts · 33 votes
6y
@Jerryll Noorden
I think its safe to say.. this is wayyy beyond just his cat? Maybe his dog and fish too. Its like john wick over here has to HE MUST destroy peoples lives for something that is legal? I thank everyone who has put info to help/educate it means alot. As for mr uhh johnny boy here you know you can just get new animals? @John Thedford
2 Reply
John Thedford
Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
6y
Originally posted by @Christopher Smith:
@Jerryll Noorden
I think its safe to say.. this is wayyy beyond just his cat? Maybe his dog and fish too. Its like john wick over here has to HE MUST destroy peoples lives for something that is legal? I thank everyone who has put info to help/educate it means alot. As for mr uhh johnny boy here you know you can just get new animals? @John Thedford

FRAUD is not legal. Go ahead and be a scammer. Your victims will learn a valuable lesson about you. Anything for a buck no matter the consequence to others!
0 Reply
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
6y
Originally posted by @Melanie Hartmann:
Originally posted by @John Thedford:
Originally posted by @Ola Dantis:
This thread is actually more interesting than what is on TV right now...

Better than Gilligan's Isle. Watch unlicensed brokers squirm when they cannot make a valid argument LOL! However, the SAD part is the victimization of the general public by these scammers. No doubt their motto is "ANYTHING for a buck". There is NO honor and NO ethics in skirting laws to broker without a license. I will be posting a copy of the letter I am sending to an unsuspecting seller that thinks their house is sold. The scammer put it under contract and is now advertising it on CL. Along with that I am filing a complaint with the state. Want to see how a deal can fall apart once an owner gets educated? Look for my post SHTF. It was a PLEASURE helping this seller and they still live in the house to this day. I will keep fighting and exposing these people for what they are!

Many wholesalers do operate under the notion that THEY are the buyers. However, not everyone! Every single contract that I have wholesaled, the seller KNEW we were wholesaling it. GASP! Yes, that is possible folks!
Also, if a seller agrees to a price and/or terms and receives EXACTLY what they wanted, regardless of whether the contract is wholesaled, I'm not seeing what the problem is. The issue really lays in inexperienced wholesalers making grandiose promises to sellers and not being able to follow through, leaving sellers worse off than before.
Once you have a reputation for being honest and credible, I really don't see the harm in wholesaling contracts when the sellers are aware.

what reputation.. no seller is going to know your reputation other than what you tell them.. so not sure that is really germane at all and its I guess feel good.. maybe you have a reputation to your buyers that you can perform.. but sellers NO way they have no clue who you are they are not in the business.. so lets leave it at that.. unless your wholesaling for a major player who has a bunch of inventory.. I can see that statement have a thread of truth..

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1 Reply
Christopher Smith
OP
Rental Property Investor · Goldsboro, NC · Member since 2019 · 44 posts · 33 votes
6y
@John Thedford
“FrAUd iS nOt LeGaL” i hope you didnt rewlly waste your time on a discussion about a CONTRACT like really dude. This was so unnecessary go look up wholesaling watch a video or 2 its legal.
1 Reply
Adam Mitchell
Rental Property Investor · Richardson, TX · Member since 2019 · 120 posts · 82 votes
6y
@John Thedford if you are so passionate about tearing down any and all “wholesalers”, why are you wasting your time on BP?
Go spend some money and setup a training program so you can give everyone who lives in the US your knowledge bombs. I am sure that will go swimmingly well for you.
4 Reply
John Thedford
Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
6y
Originally posted by @Christopher Smith:
@John Thedford
“FrAUd iS nOt LeGaL” i hope you didnt rewlly waste your time on a discussion about a CONTRACT like really dude. This was so unnecessary go look up wholesaling watch a video or 2 its legal.

This thread is an education to all. By your own admission you are a scammer and will do ANYTHING for a buck. I feel sorry for anyone that trusts you. You won't discuss facts because you want to scam people and your word is no good.

0 Reply
Adam Mitchell
Rental Property Investor · Richardson, TX · Member since 2019 · 120 posts · 82 votes
6y
@Christopher Smith I use my local Texas Real Estate Commission standard 1-4 family contract on all our deals.
1 Reply
John Thedford
Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
6y
Originally posted by @Adam Mitchell:
@John Thedford if you are so passionate about tearing down any and all “wholesalers”, why are you wasting your time on BP?
Go spend some money and setup a training program so you can give everyone who lives in the US your knowledge bombs. I am sure that will go swimmingly well for you.

I have educated a lot of unsuspecting sellers. They weren't happy when they found out the quality of people they were involved with. Look up my post SHTF. Perfect example. If your mom or sister had this garbage pulled on them I wonder if that would be ok. Can't have it both ways!

0 Reply
Christopher Smith
OP
Rental Property Investor · Goldsboro, NC · Member since 2019 · 44 posts · 33 votes
6y
@John Thedford
“YoUR WoRd iS nO gOoD” Along with the useless info you have given ill add this. Its a shame for someone like you to have such a hatred towards someone trying to do better that may not have the funds. But you dont care you see them as a scammer. Since your so determined to “EdUCate” people, start with yourself and understand what wholesaling is. Theres a reason people wholesale. Im not going to keep going back and forth with you because you dont like the concept. I really dont care how you feel. Later👍🏽
4 Reply
John Thedford
Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
6y
Originally posted by @Christopher Smith:
@John Thedford
“YoUR WoRd iS nO gOoD” Along with the useless info you have given ill add this. Its a shame for someone like you to have such a hatred towards someone trying to do better that may not have the funds. But you dont care you see them as a scammer. Since your so determined to “EdUCate” people, start with yourself and understand what wholesaling is. Theres a reason people wholesale. Im not going to keep going back and forth with you because you dont like the concept. I really dont care how you feel. Later👍🏽

You don't get it and never will. That is a shame-not for you but for your future victims. Night night scammer.

0 Reply
Ethan Wofford
Fort Oglethorpe, GA · Member since 2019 · 19 posts · 4 votes
6y
@John Thedford
You aren’t a fraud if you’re a wholesaler. What’s to say he didn’t tell the seller that he was assigning the contract. Plus the seller isn’t getting scammed they their house gets sold which is their wish.
Just want to let you know you the sellers probably aren’t gonna read your reply to this post considering it was meant for the wholesalers.
2 Reply
Ethan Wofford
Fort Oglethorpe, GA · Member since 2019 · 19 posts · 4 votes
6y
@Jerryll Noorden
Amen. Keep up the good work man! This guy was getting on my nerves I came in here to get some information not see someone call another out. I tell the sellers I’m in this to make money up front if they don’t like it then they are not of my interest.
2 Reply
Matthew Koch
Investor · Twin Falls, ID · Member since 2018 · 83 posts · 9 votes
6y
@john thedford
In my opinion for my particular state in Idaho, it is my understanding that I can go out to a customer who is in need of selling their house and I can see what price works for them to make ends meet, or Just get rid of the property or sometimes it's a bit above asking price and they sign a purchase and sale agreement that states that myself or my partner would
Be willing to buy the house out said property with am option for that assignment to be given to someone else. When that agreement is signed and turned into escrow and the two or 3 parties are there then the equity interests I the property is assigned first position to me and then I assign it to my partner as a end buyer and that end buyer pays me a cost which is normally very nominal from 1000 bucks to 10000 deepening on person and deal and if the seller is happy with their price and the end buyer still makes that number Work whom is buying it from me then it's fine and win for everyone. As I've already done my homework and contacted the Idaho real estate commission's office I can do this myself that this is very much legal and that there's nothing to worry about.
2 Reply
Jeff Cichocki
Lender · All 50 States · Member since 2015 · 401 posts · 250 votes
6y
Hi,
There seems to be a lot of back and forth over the whole scammer thing. I understand what @john thedford is saying, but he's not elaborating on why he's on a mission to call out the scammers. Let me try to shed some light on the subject of wholesaling...
1. Wholesaling is a term that is unfortunately tossed around like a bad habit. It's frequently misused and misunderstood. True wholesaling is the act of purchasing a property and reselling it at a higher price for a profit. Assigning a contract is NOT wholesaling. 99% of all guru's and YouTube videos teach it wrong. This means that almost every single wholesaler out there has it wrong as well. Please understand that when you wholesale a house, you are BUYING AND THEN RESELLING the house. Keep this note in mind.
2. Assigning/selling your contract is NOT wholesaling. You are selling your contract. That's it. Nothing else. Nothing more. Assigning a contract is assigning the contract (not wholesaling). When you put a contract up for sale, you CANNOT give out the address or any pictures. As soon as you do that, you are brokering without a license. All 50 states require you to have a license to sell someone else's house. You are NOT selling a house. You are selling your CONTRACT. This is where almost everyone gets it wrong. It is the responsibility of the person who wants to buy the contract to read the contract to find the address and find their own pictures and details about the underlying property. If someone buys the contract, they are NOT buying the house. They are buying the contract. That contract gives them the right to buy the house. This is a huge difference between wholesaling and flipping contracts.
3. The states are cracking down on this issue big time (just check out the new legislation in Ohio and Illinois - Illinois being the most aggressive new legislation to stop wholesaling the way it is currently being taught and done - there are more states working on similar legislation). When you put a house under contract, you MUST have the ability (capacity) to close AND the full intention of closing. If you are soling putting the house under contract for the sake of flipping the contract, it's only a matter of time before you find yourself in a big pile of legal trouble. If you are advertising the address, pictures and other details about the house that you are selling a contract on, you will also soon find yourself in some hot water for this as well. Most "wholesalers" have neither the capacity nor the intent to actually close. If they can't find someone to buy the contract, they intend to walk away. This is a huge problem with how wholesaling is taught and most often done.
4. I can't see through anyone's computer screen and see what their doing, but when a question is asked about the best contract so that you can get out of the deal, a huge red flag is raised regarding your intent. When the state comes knocking on your door, believe me when I say that they will have looked you up online and read all of your posts before they get there. They will be able to prove your intent in court based on your questions in the forums. When they look at the county courthouse and see that you've never closed a deal, they will have further proof as to your intent. As for proving your ability/capacity to close, that's easy to prove too. All they have to do is look at your bank account. I know that you can always argue that you have access to hard money or a private lender. But you need to have it documented that you had those funds lined up for every single deal. If you don't, you lose on the capacity issue too.
5. When a "Wholesaler" isn't performing in the best interest of the seller and is only acting their own best interest, the word scammer and the phrase "anything for a buck" get tossed in. The reason that states require licenses is because of the fact that they feel that wholesalers and rehabber's take advantage of uneducated and unsuspecting sellers. Hence the reason that we can all expect more legislation to be passed in more states to limit & prevent this type of behavior. Unfortunately, the guru's have created a legal nightmare for the rest of us.
6. Lets talk a little bit about what's going on in Illinois for second... The new legislation in Illinois essentially makes it illegal to double close or assign a contract unless you are a licensed broker in their state. This move literally just shut down wholesaling as we know it. Now, I'm not an attorney, but I have no doubt that they are going to be making some examples of a few big wholesalers in the very near future to make sure that no one else wholesales any more. But, here's what's disturbing... I keep hearing two common things in other forums about the issue... 1. "I'll just double close." If I'm not mistaken, the law allow 1 transaction per year where you could get away with this. 2. "I'll just get my license." This one is going to get them in trouble as well. Why you ask? because the real estate license comes with a code of ethics that states the agent must put the best interest of the client first. If you get the house under contract at one price and can resell it at a higher price, you did not put their interests in front of your own. You knowingly put a house under contract for a price that you knew was not the best price that the seller could have gotten. It doesn't matter whether or not you disclose your intentions. You violated your licensing ethics. A violation of your ethics terminates your license. It's a circle jerk I know, but this is a real issue to overcome. Way to many investors are not educated enough to know the consequences of their actions. They just think that everything is OK as long as they get paid. The states strongly disagree with you. It is this attitude and lack of education that has them on the rampage.
7. If you want to see what is coming down the road in all 50 states, my friend Jeff Watson (he is the attorney for the National REIA) has some videos that he did with the State of Ohio on the topic. They are posted on his site. You can find them by going to https://www.WatsonInvested.com. The videos can be found under the Wholesaling tab. If you catch what they are saying, you should be changing your business practices to follow the laws better. If not, there will be consequences for you.
Hopefully this helps someone in the group to be better and stay out of trouble...
7 Reply
John Thedford
Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
6y
Originally posted by @Jeff Cichocki:
Hi,
There seems to be a lot of back and forth over the whole scammer thing. I understand what @john thedford is saying, but he's not elaborating on why he's on a mission to call out the scammers. Let me try to shed some light on the subject of wholesaling...
1. Wholesaling is a term that is unfortunately tossed around like a bad habit. It's frequently misused and misunderstood. True wholesaling is the act of purchasing a property and reselling it at a higher price for a profit. Assigning a contract is NOT wholesaling. 99% of all guru's and YouTube videos teach it wrong. This means that almost every single wholesaler out there has it wrong as well. Please understand that when you wholesale a house, you are BUYING AND THEN RESELLING the house. Keep this note in mind.
2. Assigning/selling your contract is NOT wholesaling. You are selling your contract. That's it. Nothing else. Nothing more. Assigning a contract is assigning the contract (not wholesaling). When you put a contract up for sale, you CANNOT give out the address or any pictures. As soon as you do that, you are brokering without a license. All 50 states require you to have a license to sell someone else's house. You are NOT selling a house. You are selling your CONTRACT. This is where almost everyone gets it wrong. It is the responsibility of the person who wants to buy the contract to read the contract to find the address and find their own pictures and details about the underlying property. If someone buys the contract, they are NOT buying the house. They are buying the contract. That contract gives them the right to buy the house. This is a huge difference between wholesaling and flipping contracts.
3. The states are cracking down on this issue big time (just check out the new legislation in Ohio and Illinois - Illinois being the most aggressive new legislation to stop wholesaling the way it is currently being taught and done - there are more states working on similar legislation). When you put a house under contract, you MUST have the ability (capacity) to close AND the full intention of closing. If you are soling putting the house under contract for the sake of flipping the contract, it's only a matter of time before you find yourself in a big pile of legal trouble. If you are advertising the address, pictures and other details about the house that you are selling a contract on, you will also soon find yourself in some hot water for this as well. Most "wholesalers" have neither the capacity nor the intent to actually close. If they can't find someone to buy the contract, they intend to walk away. This is a huge problem with how wholesaling is taught and most often done.
4. I can't see through anyone's computer screen and see what their doing, but when a question is asked about the best contract so that you can get out of the deal, a huge red flag is raised regarding your intent. When the state comes knocking on your door, believe me when I say that they will have looked you up online and read all of your posts before they get there. They will be able to prove your intent in court based on your questions in the forums. When they look at the county courthouse and see that you've never closed a deal, they will have further proof as to your intent. As for proving your ability/capacity to close, that's easy to prove too. All they have to do is look at your bank account. I know that you can always argue that you have access to hard money or a private lender. But you need to have it documented that you had those funds lined up for every single deal. If you don't, you lose on the capacity issue too.
5. When a "Wholesaler" isn't performing in the best interest of the seller and is only acting their own best interest, the word scammer and the phrase "anything for a buck" get tossed in. The reason that states require licenses is because of the fact that they feel that wholesalers and rehabber's take advantage of uneducated and unsuspecting sellers. Hence the reason that we can all expect more legislation to be passed in more states to limit & prevent this type of behavior. Unfortunately, the guru's have created a legal nightmare for the rest of us.
6. Lets talk a little bit about what's going on in Illinois for second... The new legislation in Illinois essentially makes it illegal to double close or assign a contract unless you are a licensed broker in their state. This move literally just shut down wholesaling as we know it. Now, I'm not an attorney, but I have no doubt that they are going to be making some examples of a few big wholesalers in the very near future to make sure that no one else wholesales any more. But, here's what's disturbing... I keep hearing two common things in other forums about the issue... 1. "I'll just double close." If I'm not mistaken, the law allow 1 transaction per year where you could get away with this. 2. "I'll just get my license." This one is going to get them in trouble as well. Why you ask? because the real estate license comes with a code of ethics that states the agent must put the best interest of the client first. If you get the house under contract at one price and can resell it at a higher price, you did not put their interests in front of your own. You knowingly put a house under contract for a price that you knew was not the best price that the seller could have gotten. It doesn't matter whether or not you disclose your intentions. You violated your licensing ethics. A violation of your ethics terminates your license. It's a circle jerk I know, but this is a real issue to overcome. Way to many investors are not educated enough to know the consequences of their actions. They just think that everything is OK as long as they get paid. The states strongly disagree with you. It is this attitude and lack of education that has them on the rampage.
7. If you want to see what is coming down the road in all 50 states, my friend Jeff Watson (he is the attorney for the National REIA) has some videos that he did with the State of Ohio on the topic. They are posted on his site. You can find them by going to https://www.WatsonInvested.com. The videos can be found under the Wholesaling tab. If you catch what they are saying, you should be changing your business practices to follow the laws better. If not, there will be consequences for you.
Hopefully this helps someone in the group to be better and stay out of trouble...

There are a LOT of victims of these operators. All this is done with no regard to honesty ethics and the unsuspecting seller. Desperate people do shady things for money. These frauds know exactly what they are doing and could not care less.

0 Reply
Christopher Smith
OP
Rental Property Investor · Goldsboro, NC · Member since 2019 · 44 posts · 33 votes
6y
@John Thedford
To you and anyone else opinion i really DONT CARE ABOUT HOW YOU FEEL this thread is about a contract. I dont care about true wholesaling im not retarted this is a way i can do wholesale to get somewhere in life. So i can move on to other things. If yall are buddy buddy with each other then talk to each other nobody cares.
0 Reply
Malcolm Jarrell
Rental Property Investor · Stephenville, TX · Member since 2019 · 20 posts · 6 votes
6y
@John Thedford
Untasteful use of acronomzing. Or tasteful... however. I wonder if anyone else caught it.
0 Reply
Robert D DismukesPro Member
Flipper/Rehabber · Memphis, TN · Member since 2019 · 37 posts · 36 votes
6y
@Christopher Smith , Chris , although wholesaling in itself is not illegal yet. It is becoming seriously frowned upon because of the reasons stated above. But in all actuality, you technically are brokering a deal when you find a property to purchase and you find a cash buyer and you put them together. No matter how you look at it man, your brokering without a license. And the days of wholesaling, will soon be gone. I suggest that you get a little education somewhere. Coming on here and asking a couple of questions about doing that is not the right way to do it. It’s a lot more complicated than you think.
1 Reply
John Thedford
Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
6y
Originally posted by @Malcolm Jarrell:
@John Thedford
Untasteful use of acronomzing. Or tasteful... however. I wonder if anyone else caught it.

I proposed that name for their unlicensed broker organization. Tasteful or not but funny:)
I doubt they caught it.
0 Reply
Marcus Maloney
Rental Property Investor · Queen Creek, AZ · Member since 2013 · 368 posts · 191 votes
6y
I wanted to jump in this discussion because I to wholesale but I am also licensed. I'm not here to play the moderator or a mediator but by bickering between the both @John Thedford and @Malcolm Jarrell does not answer the question so here's a differenct perspective.

@John Thedford there is a very very small population of sellers that do not want to list there property they just want solutions.
Here's an example: We have a deal under contract now, as you can see from the few pics below the property is in pristine condition. Yes it could use a few updates but nothing major. I bring this to the conversation because this seller fell in that very small 1% that didn't want to list but wanted a very fast transaction.
I encouraged the seller our offer would be extremely lower than market but we can list the property and get her a much higher offer. She adamantly declined and just wanted to be done with the property because the house triggered some bad experiences. We picked the house up for 51k with an ARV of 185k (homerun)
John, you have to understand as a broker there are still a small population that want quick results and do not want to deal with going through a Realtor. They do not want to make repairs, they want quick results, they do not want the general public in the house etc....
Malcolm, in light of your request as a wholesaler your intent is not to only protect yourself by finding a clause to get you out the deal but to be transparent with the sellers. We always let the seller know that we have funding partners that must joint venture the deal with us. If the deal is not appeasing to our partners then we may exit the contract. Even in the highly unlikely case we do not close on the deal we provide the alternative to have them list the property with us or another broker.
Our goal as real estate professionals is to "HELP" the general public. Although I am a strong believer in wholesalers obtaining their license if they want to make a career as a real estate professional, I do believe there is room for both parties to work together. The key word is disclosure.
Feedback is always warranted
6 Reply

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