🤣 Wholesaler hits new level of ineptitude - WOW!

Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes

Those who follow my content know that I bag on wholesalers pretty hard. There is a rather robust list of reasons why I do this. But the main reasons are that they are illegal brokers who are too uneducated, clueless and deceitful to even realize it. In addition, speaking with them is generally a waste of time.

Today my staff gets an email from one trying to get us to sell their portfolio of properties. As we are going through their "portfolio" of properties we realize one of the properties is actually mine 🤣🤯

21 Reply

51 views

Most Popular Reply

Todd Rasmussen

Rental Property Investor · Clarksville, TN · Member since 2016 · 1k+ posts · 1k+ votes

@James Wise

I feel like going under contract and taking him out to a really nice dinner with a couple hundred of his own earnest money would be an amazing setting for a, "Now what did we learn?" conversation...

6 Reply

See this reply in the discussion

29 Replies

Jump to latestLatest

Sort by

Aaron K.
Specialist · Riverside, CA · Member since 2015 · 6k+ posts · 3k+ votes
6y
That is pretty funny, please tell me you have a response email and the reaction. @James Wise
0 Reply
Ken Mucha
Real Estate Broker · Bend OR and Billings, MT · Member since 2019 · 84 posts · 18 votes
6y
Awesome. You should inquire how much they want for it?
1 Reply
James Wise
OP
Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes
6y
Originally posted by @Ken Mucha:
Awesome. You should inquire how much they want for it?

Ohh this is a pro's pro man, didn't even have to ask as he put the smokin' hot price right in the email. It's only overpriced by about $30,000. Mind you, this is a neighborhood where the properties are priced between $40,000 - $80,000. 🤣
0 Reply
Todd Rasmussen
Rental Property Investor · Clarksville, TN · Member since 2016 · 1k+ posts · 1k+ votes
6y
@James Wise

I feel like going under contract and taking him out to a really nice dinner with a couple hundred of his own earnest money would be an amazing setting for a, "Now what did we learn?" conversation...
6 Reply
James Wise
OP
Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes
6y
Originally posted by @Todd Rasmussen:
@James Wise

I feel like going under contract and taking him out to a really nice dinner with a couple hundred of his own earnest money would be an amazing setting for a, "Now what did we learn?" conversation...

Well he's the "seller" so I'd need to be the "buyer" here? So I think it'd have to be my earnest money?
0 Reply
Todd Rasmussen
Rental Property Investor · Clarksville, TN · Member since 2016 · 1k+ posts · 1k+ votes
6y
Originally posted by @James Wise:
Originally posted by @Todd Rasmussen:
@James Wise

I feel like going under contract and taking him out to a really nice dinner with a couple hundred of his own earnest money would be an amazing setting for a, "Now what did we learn?" conversation...

Well he's the "seller" so I'd need to be the "buyer" here? So I think it'd have to be my earnest money?

1) As potential buyer, feign interest at 30K over market price. Say you have cash and want to close right now.

2) As seller, agree to 10K over market price tag but insist on a contract/EM at that moment. (20K profit? He's going to go for it)

3) As potential buyer, go AWOL.

4) As seller, issue notice to perform and cancel contract

5) Worst case scenario he comes through and sells your property for more than it's worth and you have a new listing agent. Best case scenario this whole story would look great shadowboxed with both contracts.

Other than the whole, licensure and shenanigans being generally frowned upon by the issuing authority thing, what could go wrong?
4 Reply
Matt M.
Specialist · Easton, PA · Member since 2018 · 1k+ posts · 2k+ votes
6y
@James Wise
If you haven’t responded to him yet, specifically tell him you’d like to see your property. It would be awesome if you set a time to go see it, and confront him.
4 Reply
Aaron K.
Specialist · Riverside, CA · Member since 2015 · 6k+ posts · 3k+ votes
6y
I'm so invested in the follow up now, I want to know how this story ends, this is a valuable opportunity for a great story. I think I speak for all of BP in that we want to live vicariously through you.
2 Reply
James Wise
OP
Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes
6y
Originally posted by @Matt M.:
@James Wise
If you haven’t responded to him yet, specifically tell him you’d like to see your property. It would be awesome if you set a time to go see it, and confront him.

Lol it would be pretty funny to see how he'd go about setting that up.
1 Reply
Matt M.
Specialist · Easton, PA · Member since 2018 · 1k+ posts · 2k+ votes
6y
@James Wise
Do it!!!!
0 Reply
Bob B.
Investor · Jasper GA · Member since 2015 · 1k+ posts · 1k+ votes
6y
Dose hIs his name start with a M and end in a s?
2 Reply
Steve K.
Realtor · Boulder, CO · Member since 2016 · 3k+ posts · 5k+ votes
6y
@James Wise staying the obvious here: film the whole thing and make it an episode.
2 Reply
David Demesyeux
Investor · Westbury, NY · Member since 2016 · 1 post · 0 votes
6y
@James Wise why do you say this ? I’m trying to get into this game & wholesale seems like the only other for me , I have little to no capital .
0 Reply
James Wise
OP
Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes
6y
Originally posted by @Bob B.:
Dose hIs his name start with a M and end in a s?

0 Reply
James Wise
OP
Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes
6y
Originally posted by @Aaron K.:
I'm so invested in the follow up now, I want to know how this story ends, this is a valuable opportunity for a great story. I think I speak for all of BP in that we want to live vicariously through you.

lol, unfortunately no fireworks on this one. I don't think he's ever actually even seen the house, if he did I don't know how he could have missed the Holton-Wise stickers on the doors, windows, cabinets, furnaces, hot water tanks and electrical panels. My team just told him to reach out if he's got a property that he actually holds title too. I don't think he even knows what that means lol. We'll add him to the mailing list and he can just keep on enjoying our videos.
1 Reply
James Wise
OP
Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes
6y
Originally posted by @David Demesyeux:
@James Wise why do you say this ? I’m trying to get into this game & wholesale seems like the only other for me , I have little to no capital .

Wholesaling as it's taught is a myth. You need a license to Broker real estate. That's all wholesaling is as it's taught in these programs, it's brokering real estate except instead of being up front & telling the distressed seller that you'll sell their property for X amount & take X amount as your commission / fee you are taught to lie to the seller & pretend you are going to buy the property while you secretly attempt to "assign" your contract.

It doesn't work. Nobody has any respect for wholesalers. The only people making money wholesaling are the guys selling you all of that education.

To be successful connecting buyers and sellers you need to have
- An in depth knowledge of the market.
- Marketing skills.
- Sales skills.
- Negotiation skills.
- Accurately estimate rehab costs.
- Understand how to much time it would cost to run a renovation on the properties you are presenting.
My advice get a real estate license. Way cheaper, no legal issues, more respect and there is a decent chunk of cheap or free training out there from the mega brokerages. Soak it all in while you're trying to get off the ground. It's not an easy job, 90% fail rate but it's better than the 99.9% "wholesaler" fail rate.
8 Reply
Don KonipolBusiness Member
Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
6y
@David Demesyeux
Few people can be successful “wholesaling” real estate. Making money in real estate when you have money to invest is not particularly easy. Yet it’s much harder when you have no money to invest. What you need to understand is that even assuming you have the knowledge, experience, and expertise to identify, negotiate and process the deal, those deals are far and few between, with lots of people out there looking for them on a full time basis. Many spending $10,000 monthly on marketing and advertising. It’s hard for most people to admit, but you’ve got to honestly inventory your attributes, weaknesses, likes, dislikes, passions, persistence, personality, knowledge, intelligence etc. to decide if this is something you can be successful at. And understand that wholesaling is nowhere and nothing like investing, despite the incorrect impression given by those selling mentoring.
Private Mortgage Financing Partners, LLC
Website View Page
0 Reply
James Wise
OP
Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes
6y
Originally posted by @Don Konipol:
@David Demesyeux
Few people can be successful “wholesaling” real estate. Making money in real estate when you have money to invest is not particularly easy. Yet it’s much harder when you have no money to invest. What you need to understand is that even assuming you have the knowledge, experience, and expertise to identify, negotiate and process the deal, those deals are far and few between, with lots of people out there looking for them on a full time basis. Many spending $10,000 monthly on marketing and advertising. It’s hard for most people to admit, but you’ve got to honestly inventory your attributes, weaknesses, likes, dislikes, passions, persistence, personality, knowledge, intelligence etc. to decide if this is something you can be successful at. And understand that wholesaling is nowhere and nothing like investing, despite the incorrect impression given by those selling mentoring.

Yup. Dunno why the idea got pushed around that it's anything other than a sales job. Nobody is out there pitching the car sales industry as a get rich quick scheme and I'd argue selling cars is easier than getting started (legally or illegally) brokering real estate. If you work for a car dealer at least you're given inventory to sell. If you are (legally or illegally) brokering real estate you've got to go out and find the inventory to sell as well.
2 Reply
Henry Lazerow
Real Estate Agent · Chicago, IL · Member since 2017 · 2k+ posts · 2k+ votes
6y
I had a wholesaler try to sell me a great off market deal that was really a deal which sat on mls for 12 months and recently expired 😂
0 Reply
James Wise
OP
Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes
6y
Originally posted by @Henry Lazerow:
I had a wholesaler try to sell me a great off market deal that was really a deal which sat on mls for 12 months and recently expired 😂

Nice....Probably needed like $5k in reno and it would be worth 4x what it is today. Paint the door blue and get $50,000 in equity ya know.
0 Reply
Steven Lowe
Real Estate Agent · Scottsdale, AZ · Member since 2019 · 448 posts · 320 votes
6y
I think local governments are getting wise to the problems that wholesalers can cause. Here in Illinois it's now illegal to wholesale more than one deal a year without a real estate license. They used to get around this by claiming they were not selling a property, but an interest in the property, however that loophole has been closed with the new law.
0 Reply
James Wise
OP
Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes
6y
Originally posted by @Steven Lowe:
I think local governments are getting wise to the problems that wholesalers can cause. Here in Illinois it's now illegal to wholesale more than one deal a year without a real estate license. They used to get around this by claiming they were not selling a property, but an interest in the property, however that loophole has been closed with the new law.

Absolutely. They've been cracking down on those fools in Ohio for a several years now.
0 Reply
Don KonipolBusiness Member
Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
6y
@James Wise
Real estate has got to be the only business arena where people with absolutely no money to invest, no experience in real estate or investing, and no ability to negotiate a deal think they can still be successful. If someone advertised: 100% commission sales job, no leads provided, heavy competition, possibility that you will be breaking the law, pay for your own marketing, no guaranteed buyer market, find your own product, compete against multi billion dollar companies, pay for your own training and education, long hours, extremely small likelihood of making even one sale; would anyone apply?
Private Mortgage Financing Partners, LLC
Website View Page
2 Reply
James Wise
OP
Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes
6y
Originally posted by @Don Konipol:
@James Wise
Real estate has got to be the only business arena where people with absolutely no money to invest, no experience in real estate or investing, and no ability to negotiate a deal think they can still be successful. If someone advertised: 100% commission sales job, no leads provided, heavy competition, possibility that you will be breaking the law, pay for your own marketing, no guaranteed buyer market, find your own product, compete against multi billion dollar companies, pay for your own training and education, long hours, extremely small likelihood of making even one sale; would anyone apply?

Amen.
0 Reply
Jimmy Epolito
Real Estate Agent · Clermont Florida · Member since 2019 · 55 posts · 83 votes
6y
I'm a new investor and my first interaction with a wholesaler gave me a very bad taste, but helped me learn what to look for in a property. This WS was also a contractor/rehabber. Offered a duplex for $40k + $10k rehab ARV would be $69k. Seemed like the perfect BRRRR. I looked at crime rates first. Crime in the area was through the roof and advice from BP members stated that the area was super rough. Next I looked at comps in the area. Nothing sold for more than $40k in 2019. Most were selling in the teens and 20's. This exact duplex sold for $22k last year. I am not a seasoned investor but I have a hard time believing that a $10k rehab would push the value up to $69k. I declined this property for obvious reasons. It is now listed online at $42k and has been for 84 days. If I wanted to buy it I am sure I could negotiate it down well below the $40k wholesale "Deal"! No need to mention schools on this one. Only positive I could see is that it was 2 doors and not 1! Next property was similar but in a better, more rural area. $30k + $30k rehab ARV of $95k. Sitting on .5 acre. The house next door was rehabbed and sold for $65k sitting on 1.5acres. There were a couple of homes in the area selling for $90k+ but they were either on large parcels or full gut and rehabbed to the 10th degree. They were also much newer. Mid 80's construction vs mid 60's. Anyway, I have found an investor friendly agent who does not over inflate ARV's and is making sure to keep me away from high crime and poor school districts. Only wholesale deal I would consider at this point would have to come from someone I know very well. I would rather pay a higher price than get stuck with a dud because I wanted to "steal" a property.
1 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.