All Forum Posts by: Eric N.

Quote from @James Hamling:

@Remington Lyman I don't know if you just have amazing timing, or did some Jedi mind trick on me where I now have some super ai awareness on BP forums but good-God, your right, it's getting FLOODED. 

Just followed 1 recent post last couple days and easily 50%+ is blatant ai. 

And no, Mod's don't seem to be doing anything, I say that because I see nothing coming of it so yeah, what else am I to think. 

And half of what may be humans, is self promotion and other such trash that would have never stood in past. 

I love and use ai but to augment, as an assistant. WTF is with people just having ai literally do all the talking for them? It's like reading a car brochure..... 

The worst part is AI doesn't work without human input and control. It "hallucinates", it makes up non-existent references and will be way off the minute you let it do all research for you, without staying on top of it and verifying the results. On top of it, if you ask it to write on topic, it will make it bland and as vague and non-precise as possible, so it doesn't (God forbid!) offend someone who might think or view the subject differently. It's completely useless without human input. But you can put it to good use if you ask it to check your grammar, improve the style of writing, or even make it more suitable for the public forum or blog. Key is: you have to feed it your thoughts and paragraphs, let it revise it and then read it, to make sure it doesn't alter the essence of what you were trying to say and doesn't hallucinate and make up some non-existent stuff , which is embarrassing if you rely on it and present what it generates as your opinion.  

Quote from @Sara Szo:

To anyone who has hired and assembled a team of cold callers for larger marketing campaigns: 

What sites have you used successfully or not successfully to find/hire your callers? 

What schedule have you used and found successful for contact? I.e 1 call day 1, 1 call day 3, 2 calls after two weeks, 1 call at 3 months (or any variation of this) 

What CRM have you used to manage large lists of leads? 

We ended up using an agency that hires VA's on our behalf and is responsible for them. I have received hundreds of resumes, interviewed many dozens and hired 10 or 15 cold callers before I had enough of that nonsense and chose the agencies to work with. 

If 4,500 mailers went out, you would definitely get some crazy, insane people calling and yelling at you, wishing you would die of deadly diseases, etc. A lack of such responses would indicate that your mailers either didn’t go out or weren’t delivered. When we did mailers, our phones would start ringing on the third day after the date we were told the envelopes or postcards were sent.

We did 3 or 4 campaigns, and I deeply regret spending thousands of dollars on it. We were told the same thing, that you have to send the same postcard to the same person 6 or 7 times for it to have an effect and close a deal for you. But it didn't make sense to me. It cost around $1.00 a piece for DM (including the cost of the list). Suppose you have a list of 10,000 prospects. If you follow the suggestion, you should spend $70,000 to get your deals out of that 10,000 prospect list. How many deals you think you will get out of it? You better get at least 7 with average assignment fee of $10,000 just to get your money back. You would have to close 10 to make any profit. It just seemed like tremendous waste of resources to me. We now do just cold calling. Hiring VA's and calling the targeted list of prospects. Our current cost per deal is between $2800-$3800 (it varies from month to month), which includes cost of VA, dialer, the list and skip tracing-services. I don't think we would be able to get a deal out of 2800-3800 mailers.

Mailers work ok for large operators, who spend 80K-100K monthly on marketing, and at that scale they are just pumping money into name recognition and target as many individuals as they possibly can (without regard to assumed motivation, they just bombard 80,000-100,000 people per month , letting everyone know they are out there buying homes. It doesn't work on smaller scale. 

Quote from @Remington Lyman:

Quote from @Eric N.:

Quote from @Remington Lyman:

Quote from @Henry Clark:

OP.  Let’s look at both sides of the AI topic.  I do t use any of it.  But……..   Recommend BP makes an AI section.  And monetize.  

1.  List of all people who died in town CXXXC and in the GIS property tax system there is a new owner in the last year.

2.    Bankruptcy filings in town XXXXX in the last 12 months.
3.   Same divorce filings.     
4.  Consistentlyblate property tax payments.  
5.  Elementary School closings.

6.  Church closings

7.  Daycare closings

etc etc.

I think it’s a buyers market.  Just need to find the situations. 

 I like AI. I just do not like it making up a large portion of the posts on BP.

I use AI daily

 I would say AI is somewhat useful, or very useful, if you keep it under tight control. Couple of lawyers angered judge recently and were sanctioned, because they had AI draft a brief for them on a legal case litigated in court. It was not the writing style that angered the judge. It was the "AI hallucination" that earned his wrath and had the firm and lawyers reprimanded. AI actually invented the case that do not exist, made references and citations to it and argued the whole thing on the basis that does not exist anywhere other than in AI's hallucination. So, my advise to my fellow investors: be careful with AI if you use it for complex tasks. Google "AI Hallucination" to read on that subject. It is not reliable at all if you task it with serious subjects and problems to solve. 

As to AI generated spam, I think we should all distinguish it from genuine posts where someone just asked AI to correct the grammar and make the post more readable and comprehensible. I don't have anything against anyone who uses AI as advanced Word Processor. But using it ad infinitum, to argue the point or to create subjects of discussion, is annoying and will lead to deterioration of the quality of content on the forum. I am still not sure how to eliminate it. Who and how will decide if content is total spam or just something polished and corrected by AI? If AI will be in charge of it, how we know that stupid machine won't delete legitimate posts and favor those written by another AI?

 I used AI as an advanced grammer tool until I found out I could just have ChatGPT create responses. Then I stopped using the grammer tool alltogether so people could be sure I was not using it. Also I could just teach AI to write like me

I think AI is good to create Facebook/Social media posts, promoting events or whatever you instruct it to. But it lacks the "balls", acuity, sharpness and a bit of human forcefulness when you ask it to write an article or a post about a subject, especially if it's contentious one. It's always trying to "smooth out" edges, even when it's logically impossible, and creates an opinion that is devoid of the backbone, and that's my biggest issue with outsourcing my posts to AI. Now, what you can do is ask AI to make your posts more plausible, smooth with transitions between paragraphs, less provocative (sometimes, inadvertently, we may sound like we are picking a fight, when all we are trying to do is defend our own point of view), and grammatically correct. And it will make it more suitable to post on public board. But I would still provide all the essential input, instruct it to follow the spirit of my thought and do only limited changes and edits to my original text. 
Letting Robot to write the entire post for you will not only make it obvious that you didn't write it, but it will create useless clutter and spam that will drag down value of the forum with it. Who wants to come to forum to search and read entirely AI generated post when you could just put couple of prompts into Chat GPT and read right off it? 

But my biggest issue with BP forum is how difficult it is to navigate and find sub-forums and themes I am interested in. Who designed the interface for BP? Whoever did it was obviously sabotaging BP , as if paid by competition with intent to ruin it. I have never seen a forum where it would be as difficult to navigate and search various sub-forums as BP is. 

Quote from @Remington Lyman:

Quote from @Henry Clark:

OP.  Let’s look at both sides of the AI topic.  I do t use any of it.  But……..   Recommend BP makes an AI section.  And monetize.  

1.  List of all people who died in town CXXXC and in the GIS property tax system there is a new owner in the last year.

2.    Bankruptcy filings in town XXXXX in the last 12 months.
3.   Same divorce filings.     
4.  Consistentlyblate property tax payments.  
5.  Elementary School closings.

6.  Church closings

7.  Daycare closings

etc etc.

I think it’s a buyers market.  Just need to find the situations. 

 I like AI. I just do not like it making up a large portion of the posts on BP.

I use AI daily

 I would say AI is somewhat useful, or very useful, if you keep it under tight control. Couple of lawyers angered judge recently and were sanctioned, because they had AI draft a brief for them on a legal case litigated in court. It was not the writing style that angered the judge. It was the "AI hallucination" that earned his wrath and had the firm and lawyers reprimanded. AI actually invented the case that do not exist, made references and citations to it and argued the whole thing on the basis that does not exist anywhere other than in AI's hallucination. So, my advise to my fellow investors: be careful with AI if you use it for complex tasks. Google "AI Hallucination" to read on that subject. It is not reliable at all if you task it with serious subjects and problems to solve. 

As to AI generated spam, I think we should all distinguish it from genuine posts where someone just asked AI to correct the grammar and make the post more readable and comprehensible. I don't have anything against anyone who uses AI as advanced Word Processor. But using it ad infinitum, to argue the point or to create subjects of discussion, is annoying and will lead to deterioration of the quality of content on the forum. I am still not sure how to eliminate it. Who and how will decide if content is total spam or just something polished and corrected by AI? If AI will be in charge of it, how we know that stupid machine won't delete legitimate posts and favor those written by another AI?

Quote from @Remington Lyman:

Quote from @Blake Summers:

This is all great feedback about the BP forums and site in general. I'm glad folks agree that genuine content is more valuable than AI responses (otherwise what are we even doing here). I hope these forums can remain a place for real human connection, and use that as a jumping off point for in-person connection too

 The management needs to step up to the plate if this is going to happen. I wish they would comment on this thread

 Question is: are some people trying to control the narrative and ask management to filter out unorthodox opinions, or is this a genuine concern for quality of the responses?

I see nothing wrong if someone puts their post into AI and asks AI to polish it, or check for grammatical errors. It's like using an advanced Word processor. Everyone should be welcome to do that. I recall one instance of AI use, where it was obviously counter-productive spam generation. I got into dispute over certain subject with a poster on one of the Skool communities, and I noticed he was posting his replies to me almost instantaneously. It's humanly impossible to draft 5-10 paragraphs in few seconds, and he just used AI to spew useless content in lieu of arguments he would have to make to dispute mine.  That kind of crap is obviously a spam, but aside from above example I don't see how one could go about censoring anyone for using AI. 

Quote from @James Wise:

Quote from @Eric N.:

Quote from @Megan S.:

Quote from @James Wise:

Quote from @Rick Albert:

Hello!

I'm analyzing properties and wholesalers are bringing me deals. The challenge I have is it appears to be so much risk tied to it, especially for an out of state investor. Here are some concerns I have:

1. There isn't a "due diligence phase." I can't lock up the property and go through the loan process, inspections, etc. Basically I lock it up and have to buy it.

2. How do I verify this is a legit transaction? These are people with no license, etc. with no fiduciary responsibility to anyone, so how would I know this is actually a legit transaction? Can I choose the closing company that I trust?

3. How do disclosures work? The Sellers typically have to disclose any material facts about the property, but you are flying blind is my understanding?

Obviously I have some bias being a Realtor in my market, but if I'm spending my cash I want to know it is somewhat protected.

Any assistance would be appreciated.

Thank you!

 Who people are calling wholesalers these days, (people who are really nothing more than illegal Brokers), are trash. Total trash.

That is an awfully hateful statement James Wise. I don't know who you have been working with but my company does some wholesale deals and we are far from trash. I'm not sure what that even means but our company is Property Solutions by InfinitiWin- If we can't create a situation where everybody in the deal, and I mean EVERYBODY wins, we won't do it. We genuinely help people in really difficult situations and they are always grateful. For that matter, we also have a meetup group (except "meetup" groups are not really much meeting up these days) anyhow our meetup group that mostly meets on Zoom is called Ethical REI of Northern NM.

It's a common theme on BP to attack wholesalers, been this way for many years. Usually, it's the realtors and they couldn't care less about rationale behind their statements and arguments, they just hate wholesalers because they feel terrible thinking how many more houses they could have sold if wholesalers didn't exist. Very often these are the same type of "licensed realtors" who would love to sell investment packages at retail price (they can't do otherwise, their commission is based on sales price) and ruin the very investors they pretend to serve.  

 Or, is it simply because wholesalers are illegal brokers who are lower IQ than most Realtors? Which is a pretty wild considering most Realtors are dumber than a bag of rocks.

You can fume all you want. I believe in Free Speech. Just remember: wholesalers (such as myself) will exist, as long as contract assignment exists in the United States. I never cease to warn investors against working with "professional" brokers and realtors. I see ruined and devastated investors every other day , in the course of my off market outreach. They all sit on a keg of ready to blow liability, with hundreds of thousands owed in mortgages for worthless properties that hardly compensate the mortgage they pay, let alone the taxes and maintenance costs. When I ask how did they end up making such a horrible decision to massively overpay for property, they have stories to tell about "licensed" brokers who did "professional CMA's" and oversold them those properties at 150% of the investment value.

Quote from @Megan S.:

Quote from @James Wise:

Quote from @Rick Albert:

Hello!

I'm analyzing properties and wholesalers are bringing me deals. The challenge I have is it appears to be so much risk tied to it, especially for an out of state investor. Here are some concerns I have:

1. There isn't a "due diligence phase." I can't lock up the property and go through the loan process, inspections, etc. Basically I lock it up and have to buy it.

2. How do I verify this is a legit transaction? These are people with no license, etc. with no fiduciary responsibility to anyone, so how would I know this is actually a legit transaction? Can I choose the closing company that I trust?

3. How do disclosures work? The Sellers typically have to disclose any material facts about the property, but you are flying blind is my understanding?

Obviously I have some bias being a Realtor in my market, but if I'm spending my cash I want to know it is somewhat protected.

Any assistance would be appreciated.

Thank you!

 Who people are calling wholesalers these days, (people who are really nothing more than illegal Brokers), are trash. Total trash.

That is an awfully hateful statement James Wise. I don't know who you have been working with but my company does some wholesale deals and we are far from trash. I'm not sure what that even means but our company is Property Solutions by InfinitiWin- If we can't create a situation where everybody in the deal, and I mean EVERYBODY wins, we won't do it. We genuinely help people in really difficult situations and they are always grateful. For that matter, we also have a meetup group (except "meetup" groups are not really much meeting up these days) anyhow our meetup group that mostly meets on Zoom is called Ethical REI of Northern NM.

It's a common theme on BP to attack wholesalers, been this way for many years. Usually, it's the realtors and they couldn't care less about rationale behind their statements and arguments, they just hate wholesalers because they feel terrible thinking how many more houses they could have sold if wholesalers didn't exist. Very often these are the same type of "licensed realtors" who would love to sell investment packages at retail price (they can't do otherwise, their commission is based on sales price) and ruin the very investors they pretend to serve.  

Quote from @Jay Hinrichs:

Quote from @Eric N.:

Quote from @Jay Hinrichs:

Quote from @Eric N.:

Quote from @Nadeem Alamgir:

Quote from @Henry Lazerow:

The idea is you get a crazy good deal so these risks are worth it. Reality is most wholesale deals are awful, fake rehab/ARV numbers hidden big ticket repairs and not even far enough below prices you can negotiate off MLS. Just work with a realtor who invests themselves and can find you a good deal.

Agreed, it's a volume game, and yes, some of these guys are scammy, but if you can filter them out, you'll find deals you won't see on the market. Even with their assignment fees added on, the value add deals make a lot more sense than most MLS deals.

Most of posters on this thread are real estate agents. They resent wholesalers because they believe wholesalers are stealing their bread and butter. Some brokers and RE agents just hate wholesalers, and this will never change.

Here is the truth: 

1. Real estate agent has a conflict of interest when representing investors. Agent is always interested in inflating the worth and price of property, because agent earns commission based on the sold price of the property. I have seen a lot of investors in deep dirt , because they paid retail price on as is property that is not worth half of what it costs to buy and fully rehab it.

2. Wholesalers are humans, like politicians, cops, attorneys, brokers, agents, doctors, astronauts and etc. Some are scumbags, others are not. Some are competent, others are clueless. Some are deliberately deceitful, others are transparent. 

3. Investor is not a mentally challenged , elderly or minor consumer, in need of a nanny or third party guardian/protector. Investor is an entrepreneur and as any businessman must accept the risks and responsibilities that come with running a business. Lazy and stupid investors will always fail, but smart ones will study their market, understand that they are responsible for their own actions and will only buy properties that make sense investing in.

4. As a flipper I am currently looking to buy a property in $1.1M - $1.3M ARV neighborhood. I have a partner who is GC. I have a team of three realtors in the area where I am looking to buy a house for rehab. I know how much it will cost to rehab the house, based on whatever variables and finishes I select. I know DOM for those houses listed in 1.1.M-1.3M range. I will only buy it if I can get it for ARV minus Cost of Rehab minus 10% resale cost minus my closing costs, minus my Hard Money Cost (interest/origination fees) minus holding cost and minus $250,000 I want to make in 6 to 9 months period if I buy that property. Whatever that number IS (after all deductions) is MAO I will pay for the property. If I don't get it for that number I will NOT buy it. I would rather NOT flip than loose money or work and sweat while everyone else makes money. I am the only person responsible for doing my due diligence.

5. As a wholesaler, I do my best to get the property for less than 70% of ARV minus rehab costs and my assignment fee. I know what underwriters and hard money lenders look for when they approve hard money and DSCR loans. But when I have property under contract I don't expect contract buyer to rely on my numbers or analysis. I usually say: here is the house and this is my asking price. At most I will disclose ARV, based on comps in the area. Rehab costs are for me personally to figure , so I can properly negotiate the selling price with the seller. But I don't think it's a good idea to share it with buyer. I may share it if I know they have plenty of experience, to show that I have a clue what their cost of rehab will be. But generally wholesalers should avoid posting rehab costs for a deal. I don't know who they will use for construction and where they will get their materials. Some investors run their own crews and have GC license. They have storages and use stored materials from previous projects and buy dirt cheap materials and appliances from auctions. Others hire general contractors who charge premium for running the project, they pay full price for materials. As you can imagine, cost of rehab can vary drastically from one to another investor. So, I will never be able to tell buyer what exactly it will cost them to fix the property. They are the ones who must figure it out. I will run mid point numbers just to figure what the property is worth as an investment opportunity before I put it under contract.

P.S. I liked your response that's why I replied to your post. You are honest. If I ever decided to work with a realtor I would pick someone like you.

Biggest risk is cash buyers get no title insurance on the wholesaler assingment fee.. if there is a title claim and the buyer gets paid out they lose the assingment fee.. poof gone.. no wholesaler is going to cut them a check.. Most folks simply do not know that title companies will only insure the underlying contract amount..  

For me I insist on buying extra title insurance to cover the fee.. Most wont do it so its a dialing for dollars situation. many never heard of it.. U have to educate them.. but in markets I am funding high volume flippers its a must and I do find a company that will accomodate.. Average one off investor might not have the same pull based on lack of deal volume.

I think this is something buyer has to do, not something wholesaler should be actively participating in or offering. Assignment fee is just like the closing costs, attorney's fees , origination fees and etc. Buyer received services and paid for them, and none of the parties that provided the services should be on the hook, unless there was some sort of fraud or misrepresentation involved. Of course, buyer is free to purchase extra coverage, if they elect to do so. But I don't think it's responsibility of the wholesaler to offer it.
What I know wholesaler must do is to disclose everything that he is aware of. For instance, suppose there is a ground rent on property. There are legitimate, brick on concrete foundation houses that stand on grounds that still collect ground rents, dating back to colonial times. If wholesaler fails to disclose such leasehold (at least in the jurisdictions I have dealt with), he will be on the hook once buyer finds it out. He might be on the hook even if buyer finds out during title search, doesn't make a fuss about it at closing and later comes after wholesaler when they want to redeem the land. But ,aside from such encumbrance that assignor must disclose, any other liens issues and insurance for those type of claims should  be the responsibility of the buyer and the title agency to clear. 

Note that I am not posting this to argue or dispute your position. I believe business interests are best served when everyone acts in a good faith, including the buyer, seller and wholesaler. I personally have never heard of extra insurance coverage to cover the assignment fee, so I will discuss this with my local title agency that handles my transactions. They are very good and thorough on everything, they do comprehensive title search before insuring it. May be they should advise buyers to add extra coverage when producing the title insurance for them. 

the point is very few people especially beginners usuing wholesalers understand the risk they take and I am 100% Certain very few wholesalers know this either .. Did U know this ?  The other issue is the title company you are using may not be aware or will offer it.. 

Are you going to move your file because of it to protect the buyer ???? Or just tell the buyer caveat Emptar sorry you did not know this youd should have not my deal.. 

I had a property with ground rent, which, by law, can be redeemed for a few thousand dollars. The title agency alerted me to this; I wouldn’t have been able to uncover it on my own, as the ground rent was recorded many decades ago—well before the 1970s, which is as far back as public land records go when searched online.

I went out of my way to add an addendum to my original PSA, as well as to the AA, to inform the buyer that there is ground rent, and that they will need to redeem the land in the future. I don’t want them coming after me two years later trying to make me pay the redemption costs. I’m not trying to hide anything from the buyer—I’m not stupid enough to do that.

That said, my understanding is that I am the principal in the assignment of PSA transaction, not a broker or an agent representing either the seller or the buyer. As such, I do not owe fiduciary duties to either party, and in fact, could get myself into trouble if I appear to be acting on behalf of one side or the other.

But I see no harm in informing the title company about the assignment fee insurance (which would probably cost few extra dollars, like PIP insurance for drivers) , so they can offer appropriate coverage to the buyer. To me it’s a common sense to try to build long-term, mutually beneficial relationships with buyers, rather than treating them poorly.

A lot of people, in all kinds of industries, seem to have a “dog-eat-dog” mentality—I don’t share that view. While I do believe in personal responsibility and that everyone should advocate for themselves, I also value goodwill on a personal level. That’s part of my personal philosophy and how I do business. So, if there’s any way I can make the buyer’s life easier—without creating the appearance that I’m acting as their agent—I’ll certainly do it.

Quote from @Jay Hinrichs:

Quote from @Eric N.:

Quote from @Nadeem Alamgir:

Quote from @Henry Lazerow:

The idea is you get a crazy good deal so these risks are worth it. Reality is most wholesale deals are awful, fake rehab/ARV numbers hidden big ticket repairs and not even far enough below prices you can negotiate off MLS. Just work with a realtor who invests themselves and can find you a good deal.

Agreed, it's a volume game, and yes, some of these guys are scammy, but if you can filter them out, you'll find deals you won't see on the market. Even with their assignment fees added on, the value add deals make a lot more sense than most MLS deals.

Most of posters on this thread are real estate agents. They resent wholesalers because they believe wholesalers are stealing their bread and butter. Some brokers and RE agents just hate wholesalers, and this will never change.

Here is the truth: 

1. Real estate agent has a conflict of interest when representing investors. Agent is always interested in inflating the worth and price of property, because agent earns commission based on the sold price of the property. I have seen a lot of investors in deep dirt , because they paid retail price on as is property that is not worth half of what it costs to buy and fully rehab it.

2. Wholesalers are humans, like politicians, cops, attorneys, brokers, agents, doctors, astronauts and etc. Some are scumbags, others are not. Some are competent, others are clueless. Some are deliberately deceitful, others are transparent. 

3. Investor is not a mentally challenged , elderly or minor consumer, in need of a nanny or third party guardian/protector. Investor is an entrepreneur and as any businessman must accept the risks and responsibilities that come with running a business. Lazy and stupid investors will always fail, but smart ones will study their market, understand that they are responsible for their own actions and will only buy properties that make sense investing in.

4. As a flipper I am currently looking to buy a property in $1.1M - $1.3M ARV neighborhood. I have a partner who is GC. I have a team of three realtors in the area where I am looking to buy a house for rehab. I know how much it will cost to rehab the house, based on whatever variables and finishes I select. I know DOM for those houses listed in 1.1.M-1.3M range. I will only buy it if I can get it for ARV minus Cost of Rehab minus 10% resale cost minus my closing costs, minus my Hard Money Cost (interest/origination fees) minus holding cost and minus $250,000 I want to make in 6 to 9 months period if I buy that property. Whatever that number IS (after all deductions) is MAO I will pay for the property. If I don't get it for that number I will NOT buy it. I would rather NOT flip than loose money or work and sweat while everyone else makes money. I am the only person responsible for doing my due diligence.

5. As a wholesaler, I do my best to get the property for less than 70% of ARV minus rehab costs and my assignment fee. I know what underwriters and hard money lenders look for when they approve hard money and DSCR loans. But when I have property under contract I don't expect contract buyer to rely on my numbers or analysis. I usually say: here is the house and this is my asking price. At most I will disclose ARV, based on comps in the area. Rehab costs are for me personally to figure , so I can properly negotiate the selling price with the seller. But I don't think it's a good idea to share it with buyer. I may share it if I know they have plenty of experience, to show that I have a clue what their cost of rehab will be. But generally wholesalers should avoid posting rehab costs for a deal. I don't know who they will use for construction and where they will get their materials. Some investors run their own crews and have GC license. They have storages and use stored materials from previous projects and buy dirt cheap materials and appliances from auctions. Others hire general contractors who charge premium for running the project, they pay full price for materials. As you can imagine, cost of rehab can vary drastically from one to another investor. So, I will never be able to tell buyer what exactly it will cost them to fix the property. They are the ones who must figure it out. I will run mid point numbers just to figure what the property is worth as an investment opportunity before I put it under contract.

P.S. I liked your response that's why I replied to your post. You are honest. If I ever decided to work with a realtor I would pick someone like you.

Biggest risk is cash buyers get no title insurance on the wholesaler assingment fee.. if there is a title claim and the buyer gets paid out they lose the assingment fee.. poof gone.. no wholesaler is going to cut them a check.. Most folks simply do not know that title companies will only insure the underlying contract amount..  

For me I insist on buying extra title insurance to cover the fee.. Most wont do it so its a dialing for dollars situation. many never heard of it.. U have to educate them.. but in markets I am funding high volume flippers its a must and I do find a company that will accomodate.. Average one off investor might not have the same pull based on lack of deal volume.

I think this is something buyer has to do, not something wholesaler should be actively participating in or offering. Assignment fee is just like the closing costs, attorney's fees , origination fees and etc. Buyer received services and paid for them, and none of the parties that provided the services should be on the hook, unless there was some sort of fraud or misrepresentation involved. Of course, buyer is free to purchase extra coverage, if they elect to do so. But I don't think it's responsibility of the wholesaler to offer it.
What I know wholesaler must do is to disclose everything that he is aware of. For instance, suppose there is a ground rent on property. There are legitimate, brick on concrete foundation houses that stand on grounds that still collect ground rents, dating back to colonial times. If wholesaler fails to disclose such leasehold (at least in the jurisdictions I have dealt with), he will be on the hook once buyer finds it out. He might be on the hook even if buyer finds out during title search, doesn't make a fuss about it at closing and later comes after wholesaler when they want to redeem the land. But ,aside from such encumbrance that assignor must disclose, any other liens issues and insurance for those type of claims should  be the responsibility of the buyer and the title agency to clear. 

Note that I am not posting this to argue or dispute your position. I believe business interests are best served when everyone acts in a good faith, including the buyer, seller and wholesaler. I personally have never heard of extra insurance coverage to cover the assignment fee, so I will discuss this with my local title agency that handles my transactions. They are very good and thorough on everything, they do comprehensive title search before insuring it. May be they should advise buyers to add extra coverage when producing the title insurance for them.