Experienced wholesaler vs Inexperienced wholesaler

Member since 2022 · 51 posts · 30 votes

6d

Hey Allen! In my experience, when working with “green” wholesalers, or anyone just getting started, it requires a little more quality control on the buyer’s side. That means doing more due diligence yourself, double-checking their estimated rehab costs, following up with title, and making sure all the smaller details are actually being handled.

Everyone has to start somewhere (just like we did!), but the risk of small details slipping through the cracks can be a little higher, especially if that wholesaler is more focused on getting their first check than making sure every part of the deal is buttoned up.

For my first couple of deals, I had a seasoned vet show me the ropes. Once I built that confidence and understood what I was looking for, I felt much more comfortable working with newer people in the industry. A lot of it comes down to setting expectations up front, recognizing their strengths and weaknesses, and keeping those in mind throughout the process.

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Stuart UdisPro Member

Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes

5d

Don't dismiss MLS properties. There are opportunities if you take the time to find the properties that are mismanaged listings. I would go so far as to argue these are properties are less competitive than the deals most wholesalers promote which ordinarily go out to large lists of buyers. On top of that you can generally negotiate more favorable purchase terms such as longer settlement periods, better diligence periods and position yourself for better financing. Rarely an option with wholesale transactions because their agreement's timeline becomes your timeline. I especially urge newer investors to build relationships with knowledgeable realtors and buy off the MLS at the start for these reasons.

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Allen Montgomery
OP
New to Real Estate · Louisville, KY · Member since 2024 · 11 posts · 11 votes
5d
You believe new investors should start off the MLS and work with a real estate agent even though the process may take longer, and the fees and commissions that would have to be paid to the agent?
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Stuart UdisPro Member

Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes

5d

@Allen Montgomery By your own admission you are a new investor. A longer process is in your best interest because you can run a more traditional diligence process. That's rarely afforded in wholesale transactions. Not all transactions require you to pay a broker fee but even in instances where that's necessary what evidence can you point to that suggests a well negotiated transaction off the MLS is a lesser transaction than a wholesale transaction containing an assignment fee? Another thing to consider: Do you really believe a wholesaler is out there looking for opportunities exclusively for you? No, you are going to be added to a buyer list with a bunch of unsophisticated buyers. There is no worse buyer pool to compete against. Most of the belief that wholesalers are going to land you better transactions is nothing more than the gobbledygook they feed you.

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Marc Winter

Real Estate Broker · Northeast PA · Member since 2017 · 2k+ posts · 2k+ votes

1d

It's all about the deal: even a blind squirrel can find a nut.

However, with an inexperienced wholesaler, YOU better know that side of the business, ie: issues with title insurance, double closes, etc., before you sign up.

Unless/until someone goes through the full process many times, they might not even know what they don't know, so you need to be educated on the system.

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Dennis Ating
Wholesaler · Cleveland To Florida · Member since 2026 · 2 posts · 2 votes
21h
True
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John Leland

Specialist · I give advice - [email protected] - I focus on states where investing is profitable, reasonably safe & secure · Member since 2026 · 46 posts · 8 votes

1d

Quote from @Allen Montgomery:

Does it really matter if the wholesaler you're dealing with has experience or not? I went to my first KREIA meeting last week, with the hope of meeting a wholesaler, after having a conversation with a HML who smartened me up and made me realize that most investors get their properties from wholesalers and not real estate agents.

I did meet a wholesaler on Facebook who is young and inexperienced, but he has helped me a lot lately with my journey in being an investor thus far, but at the KREIA meeting I met a wholesaler who was totally on top of his game and was very impressed with him.

I really both of these guys, I think they are both really smart and know the wholesale game in and out.

So I'm wondering, what is the criteria I'm looking for when I decide to go all in with one or the other?

Does it matter that one is almost as green as I am, and the other is a seasoned pro.

There are standards in the wholesaling game and if you know and follow them, you will be successful. It takes time to learn those standards. Most wholesalers quit after a few months because wholesaling requires understanding of laws, sales, what sells and for how much. It is not a "by guess and by golly" approach that keeps you out of trouble. And the fact is, the laws have been tightening and changing. Be sure you are up to speed.

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Ashish AcharyaBusiness Member

CPA, CFP®, PFS · FL · Member since 2017 · 5k+ posts · 3k+ votes

1d

Allen, I think experience helps, but I wouldn’t use years in the business as the only deciding factor.

A newer wholesaler who is transparent, knows their numbers, communicates well, and is willing to answer tough questions can be more valuable than someone experienced who is just pushing inventory.

For a BRRRR investor, I'd focus on the deal itself. Can they provide realistic purchase assumptions? Do they understand the property condition? Are the rehab estimates supported by actual numbers? Do they disclose issues upfront? Are they protecting the relationship after the contract is signed, or are they only focused on assigning the deal?

A good wholesaler should make your underwriting easier, not harder. You should still verify everything yourself, but the right person can become a valuable source of opportunities over time.

I’d probably work with both until you see who consistently brings quality deals, communicates honestly, and understands what you’re looking for as an investor.

Happy to connect!

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Experienced wholesaler vs Inexperienced wholesaler

Experienced wholesaler vs Inexperienced wholesaler

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