How to determine a legitimate wholesaler? Wholesaler lists?

Question

Hey All,

I'm wondering how to determine if a wholesaler is legitimate or not? What type of things to watch out for when considering a wholesale deal?  Also, is there a list or does anyone have recommendations for legitimate wholesalers in the Memphis, TN area? Thank you!

Jimmy Cantave · Answer

what I have notice the original wholesaler will put a bunch of information about the property while the co-wholesaler would  put 2-3 pictures and a description.

John Thedford · Answer

Make sure they have a real estate license

Christopher Blanco · Answer

1) Due diligence! Don't ever take the Wholesalers word for anything (or anyone's for that matter). Run your own numbers, get your contractor into the property etc. Once you find a wholesaler who you know can run semi-accurate numbers, then its trust but verify, but most over estimate ARV and under estimate repair.

2) If a wholesaler is assigning you the contract, he should be upfront about the contract price and assignment fee. If they aren't, then I would ask for a double close.

3) Negotiate! Especially with the larger wholesalers, there is often more room in a deal than you think.

Roland Paicely · Answer

Interesting question.  Legitimate can mean a number of things.  However, find out if the wholesaler has the deal under contract with the seller.  Or is he a co-wholesaler.  Not that it's a bad thing.  But it's good information.  Naturally, the most important thing is do the numbers work.  If he requires a deposit, make it payable to the closing company.  I can't say that I've run into many wholesalers that aren't 'legitimate'.  Some are new and stumbling through the process.  We've all done that.  Some are experienced and things go smooth.  Keep your eyes open for the few wholesalers that try to steal your deal.  Other than that.  You should be fine.  Listen to your instincts.