Wholesalers in San Antonio Greedy?

Question

I’m really trying to work with some of the local wholesalers but it they’re ARVs are constantly inflated and Rehab estimates are not realistic.... so my question is am I over critical or am I just dealing with the wrong wholesalers?

Jay Hinrichs · Answer

its far from the only way..  the real way is to get in the game become licensed. you want to make bank become a commerical broker selling 2 to 50 million dollar multi family.  wholesaling is a joke for 99% of those who try it.

if you have 10 to 30k a month for marketing then I get that.. but if you want to work your way up. get in the game.. get with those that will do this for their entire life.. like my wife and I..

Brian Pulaski · Answer

There are a lot of new flippers out there who are buying up deals from wholesalers that aren't deals at all. I've been beat out on hundreds of houses (MLS, wholesalers, etc) and keep an eye on them after they get flipped. I see a LOT of them get listed for substantially more than they are worth and sit. One I valued my ARV at $215k someone else bought and flipped. They listed it at $260k and over the course of 5 months or more ended up dropping until they sold it for $219k.

Frank Wong · Answer

Hi PJ,

This is the exact reason why an investor needs to be able to determine the correct ARV and rehab numbers for themselves.  Stick to your numbers and gut.

PJ Kokesh · Answer

@Brian Pulaski There was one here that had it listed at 175K with a Rehab of 50K and ARV of 220K.....I emailed back ....uh you realize that is negative 5k right? They pulled the listing and relisted it with and ARV of 290K......which no comp could be found to support......

I'm really not impressed with any of the wholesalers, I have met..........However, they are going to keep jacking up the prices if they can keep selling them to people who can't or don't see the need to run a simple comp on google.

Ned Carey · Answer

@PJ Kokesh It is typical of wholesalers to overstate ARV and understate repairs. Not just in San Antonio but around the country.

I don't consider it greedy. It is either ignorance of the real numbers or simply unethical.

Daray Olaleye · Answer

@PJ Kokesh There's a lot more bad than good out there. Stick to your criteria and don't get emotional. Sometimes the droughts kill me and the frustration starts to kick in but I know my numbers so I don't risk jumping into an unrealistic deal just because it's all everyone has to offer right now. Godspeed.

Josue Vargas · Answer

I had two experiences here in San Antonio with wholesalers, none of them delivered.   After seeing the properties and running the numbers myself, properties needed more money for repairs, plus rent in the area were not as advertised.  Had to skip and moved on.

Brian Pulaski · Answer

That's -$5000 without accounting for holdings, closing and lending costs. Most wholesalers I am on the list for have never flipped, rehabbed or rented a house, and I would be willing to bet some have never even bought a house. The good wholesalers have done all of these things so they understand all the costs and how to really determine an ARV.

It's not just your area, it's widespread. We see hundreds of "I'm new to REI and plan to wholesale" on this message forum from people who have little to no experience. Wholesaling takes a lot of skill and experience in my opinion, yet seems to be the #1 thing beginners think they can do.

Rick Pozos · Answer

Hey @PJ Kokesh, who are you working with? Do you have just 1 person?? YOu might look into doing some marketing on your own. I find that works better for me. If I do find a deal that I can not or do not want to pursue, that is when I wholesale it myself.

When I do wholesale something, I usually have a buyer in a day or two. I dont try to make a killing on it like most people around here. Get to know some of the people who are doing the wholesaling. You can always make them an offer.

Alma Laque · Answer

Its not just you.

Wholesalers in San Antonio Greedy?

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