Going around a wholesaler?

[Michael Hicks]

I was recently contacted by a new wholesaler about a property in an area that I love to buy in.  On the surface it was a great deal based on the pics(very few), the price, and the area.  I arranged to meet with him that afternoon and was met by the homeowner instead as the wholesaler was not on time.  He told me to take a look through the property and boy was I surprised.  I've looked at hundreds if not thousands of homes and this was the worst I'd ever seen.  As I came back out I was greeted by the wholesaler and the homeowner who were outside talking.  The wholesaler was asking $45,000 for the property.  I pulled him to the side and discussed the property.  I told him I wasn't interested but felt he was high on the price and based on the repairs should be priced at 20k.  He advised that was what he had it under contract for.  I try to help the new guys so I encouraged him to renegotiate for 15k and sell at 20k.  I won't go around him nor would I even consider it...especially on this house.  I would like to hear some other opinions though.  What would you do?

[Jay Hinrichs]

would go around them in a heart beat... if he has a ligit contract then he can close and you can buy it.. other wise give you card to the home owner tell him if for some reason it does not close you will buy it.. there is no moral or ethical issue when it comes to wholesalers.. IF they have a contract on the property that's fine close it.. then resell to you.  this is just someone being totally greedy and thinking some dummy is going to pay 45k for a 20k house.. I can tell you when you move up the food chain into bigger deals this is how it works and how it should work.

you try to flip a plat ( I do this ) to lennar or Horton or any other big builder.. you better have the powder to close.. they can walk from 100k EM in  a heart beat.. sit there and watch you die on the vine then have their land Ack guy come right back to the seller and buy it... I feel the risk is soley on the wholesaler...

and of course I am sure I am in the minority... but that's how I feel about it.. there is no code for wholesaling there is no licesne for wholesaling there is no code of ethics.. and it comes down to contractual law... if a contract expires you buy it.. simple as that.