My Take on Every Thread in the Wholesaling Forum
Don KonipolBusiness Member
Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votesMy Take on Every Thread in the Wholesaling Forum
Most Popular Reply
Flipper/Rehabber · Phoenix, AZ · Member since 2018 · 269 posts · 152 votes
5y@Don Konipol
11. OP never responds, because advice on BP is not what they want to hear.
109 Replies
- Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes5y
Thanks Ned, that means a lot!
Btw, I just don't see all the "wholesale bashing", "hate wholesalers", etc. that some wholesalers are complaining of. Yes, once in a while people can get a little riled up and say some inappropriate things or say things a little harsher than they may need to but.....
I don't think that's what the wholesalers complaining about my post or calling my post "anti wholesaler" are really complaining about.
My take on it is that when someone inexperienced, naive or even clueless about what it takes to be successful arbitraging real property asks for a critique or asks a question about the subject on this forum, there is absolutely nothing "anti wholesale" or "hating wholesalers" about telling him the TRUTH.
1. Yes, all those YouTube videos he watched, "free" weeknight meetings, almost free weekend seminars he attended, are extremely misleading regarding the success that can be obtained. They either or minimize the work required, the knowledge and experience needed, the marketing costs necessary, or greatly inflate the profitability of operating a successful wholesale business. Pointing this out is not anti anything, or biased in any way. It's what we call TRUTHFUL.
2. Pointing out that the OP needs to consider potential legal issues, does not mean that the responder is calling wholesalers illegal operators, or anything of the sort. I find that most people posting that a license may be required are very specific as to which states and which practices are be referred to. Again, this is just being truthful.
3. Pointing out that many wholesalers operate unethically is a matter of opinion. But when the responders give specific examples of what behavior they believe is unethical, they aren't hating, they're merely stating their opinion. I'm all for the free market. But....I wouldn't want my 90 year old parents "helped" by a wholesaler purchasing their property for 60c on the dollar because my father has dementia. Would you?
4. Finally, we now have entered a world less and less tolerant of "invasive marketing". Yet, this is exactly what many gurus teach and what many wholesalers practice. I don't know anybody that likes calls offering to extend a warranty on a car they no longer own; lower the interest rate on student loans that were paid off last century; or buy their investment property for 65c on the dollar. and texts are even worse. Perhaps the reason real estate brokers rarely if ever engage in this practice is that their business model is building a relationship with a defined section of the community, or neighborhood, whereas the wholesaler is more of a transactional business.
- New to Real Estate · Jacksonville, FL · Member since 2021 · 22 posts · 7 votes5y
@Jay Hinrichs Thank you for the reply and the info. Where can I find this process at? Thanks in advance.
- 5yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Originally posted by @Scottie D. Mullins:
@Jay Hinrichs Thank you for the reply and the info. Where can I find this process at? Thanks in advance.
well since it is a law carve out.. most any attorney should be able to point you to the statutes that call this out.
Or any really good RE broker should have the disclosure documents that are needed.. Its all about disclosure from what I know in Texas.
- New to Real Estate · Jacksonville, FL · Member since 2021 · 22 posts · 7 votes5y
@Jay Hinrichs Awesome, and again thank you. I really appreciate the info and the help. Have a great day.
- 5yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Originally posted by @Don Konipol:
Thanks Ned, that means a lot!
Btw, I just don't see all the "wholesale bashing", "hate wholesalers", etc. that some wholesalers are complaining of. Yes, once in a while people can get a little riled up and say some inappropriate things or say things a little harsher than they may need to but.....
I don't think that's what the wholesalers complaining about my post or calling my post "anti wholesaler" are really complaining about.
My take on it is that when someone inexperienced, naive or even clueless about what it takes to be successful arbitraging real property asks for a critique or asks a question about the subject on this forum, there is absolutely nothing "anti wholesale" or "hating wholesalers" about telling him the TRUTH.
1. Yes, all those YouTube videos he watched, "free" weeknight meetings, almost free weekend seminars he attended, are extremely misleading regarding the success that can be obtained. They either or minimize the work required, the knowledge and experience needed, the marketing costs necessary, or greatly inflate the profitability of operating a successful wholesale business. Pointing this out is not anti anything, or biased in any way. It's what we call TRUTHFUL.
2. Pointing out that the OP needs to consider potential legal issues, does not mean that the responder is calling wholesalers illegal operators, or anything of the sort. I find that most people posting that a license may be required are very specific as to which states and which practices are be referred to. Again, this is just being truthful.
3. Pointing out that many wholesalers operate unethically is a matter of opinion. But when the responders give specific examples of what behavior they believe is unethical, they aren't hating, they're merely stating their opinion. I'm all for the free market. But....I wouldn't want my 90 year old parents "helped" by a wholesaler purchasing their property for 60c on the dollar because my father has dementia. Would you?
4. Finally, we now have entered a world less and less tolerant of "invasive marketing". Yet, this is exactly what many gurus teach and what many wholesalers practice. I don't know anybody that likes calls offering to extend a warranty on a car they no longer own; lower the interest rate on student loans that were paid off last century; or buy their investment property for 65c on the dollar. and texts are even worse. Perhaps the reason real estate brokers rarely if ever engage in this practice is that their business model is building a relationship with a defined section of the community, or neighborhood, whereas the wholesaler is more of a transactional business.
exactly wholesaler frankly is only as good as their last deal.. If you dont have a deal for an investor thats the end of your business and you have not created a relationship for long term success. And you must feed the marketing beast one way or the other. When in fact an better than average agent after about 5 years maybe a little more rarely has to advertise they have built a business that is mainly referral based. I only have to look at Ms. Lori my wife she has not advertised since about 2004 when we did fly buy seminars in the Bay Area..
I think this is the truth we try to get out to the newer folks that drink the wholesaling to get money to buy rentals crowd drinks. legalities aside thats just one of the issues. Its the same thing that folks on BP get riled up about when folks say they paid 40k to go to a how to flip boot camp and 90% of the members told them they were nuts buy a house instead. Having been around that arena there is no question that mabye 10% of the folks that pay that fee will in fact do anything with it. But the premise is not violating the real estate brokerage laws ( at least in the states we know its a clear cut violation to advertise a property you do not own.. I had a long talk with the Oregon investigator and they do not recognize 100 dollar EM or 1000 dollar EM and a contract as equitable interest.
And to offer some advice that if you want in the industry generally speaking becoming licensed and then engaging with full time real estate agents/brokers lenders etc will open many more doors than the micro niche of trying to find equity to make a fee on.. Granted as stated in certain markets and Neds is one of them Wholesaling is very much a part of the fabric of those transactions in those areas were there are more doors than butts to put in them.. IE vacant board ups large sections of rough areas and cultural issues. I have found in that market to do very well letting Ashland Auctions exit those type of properties for me they are licensed of course.
The larger wholesaler outfits I have funded over the years ( and I do a lot of it) are all licensed .. When we were killing it in Orlando in 2012 to 2014 Altura was the wholesale agency.. Also you have Networth realty they are licensed etc.. And the franchises of ugly home fame I am sure do things by the book.
As well as of course market conditions radically effect these strategies.
- 5yTyler GibsonBusiness MemberReal Estate Agent · Orlando, FL · Member since 2017 · 1k+ posts · 2k+ votes
Originally posted by @Don Konipol:
My Take on Every Thread in the Wholesaling Forum
1. Newbie with no Capital want to “begin real estate investing” by wholesaling
2. Current “wholesalers” offer encouragement, general advice, etc.
3. Real Estate Brokers tell OP that wholesaling is unethical, illegal, etc.
4. Other investors tell OP that chance for success is minimal, and that wholesaling is not investing
5. Inexperienced wanna be investors chime in that naysayers are just trying to kill someone’s dream, don’t listen to naysayers “haters just want to hate” , etc.
6. Thinly disguised point man for wholesaling guru states that he had great success only after paying for mentoring with this particular guru.
7. Jay Hinrichs points out that this particular guru was indicted in Oregon for fraud, and is being sued in Washington
8. Don Konipol votes on Jays post
9. OP asks another blatantly ridiculous question
10. #2 thru #8 above repeat again
This is one of the greatest posts I have read on here in a while. Thank you for the truth and levity.
- Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes5y
Hate the sin, not the sinner. It's easier to forgive those who don't know, much harder to forgive those who intentionally avoid knowing. :)
- 4yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Originally posted by @Chance B.:
I think this is the LONGEST thread I have ever read. A lot of good information it in though, thank you for everyone who has responded.
Pop on to a few Clayton Morris threads those are loooong ones as well.
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