Flipper/Rehabber · Member since 2018 · 20 posts · 1 vote
I felt this a good topic to bring to the group. Can wholesalers have themselves gazed out of a market but charging exuberant fees on properties whose value won’t equate after extensive rehabs on these same homes the wholesalers are selling? Take this property I saw today for 170k! In a horrible area of Newark NJ. I am a licensed NJ contractor and Based on the pics included without even going I know it needs about 80k minimum in work . Where’s the value if the home comps for the area clear have it selling in the low 300k based on the rooms and overall size of the home? Who can you wholesale this and expect longevity?
Either way, more properties are being offered for higher prices. As long as you're not buying into the idiot deals and you own in an area they're doing business in, wholesalers are raising property values and are making you money. I really don't see how they can destroy a market.
Is the wholesaler actually able to sell it for that price? It seems to me if there are wholesalers trying to sell properties for too much, either they're going to go out of business (keep an eye on their failed deals), or @Jay Hinrichs is correct and they've found people who are willing to overpay for whatever reason.
Either way, more properties are being offered for higher prices. As long as you're not buying into the idiot deals and you own in an area they're doing business in, wholesalers are raising property values and are making you money. I really don't see how they can destroy a market.