Who actually buys and sells what they say

[Ozzy Smith]

So I want to throw something out there to see if it's just me or if anyone else notices the same thing.  I see posts all the time where people are hating on wholesalers that tie up a property and then never close because they can't find an end buyer.  I also notice that there are TONS of supposed cash buyers looking for deals that can't find them.  How many of you have been contacted either by phone, email, or even on BP from someone that says they want you to send them your list that never buy anything?

Maybe they do buy 1 or 2 but then all of a sudden the funds dry up and they can't actually buy the volume that they said they could?  This gives wholesalers and especially Newbie's a lot of false hope and perpetuates the problem.  So the question is who is really to blame?

How many times have you experienced this?  I understand that it goes both ways... many times the wholesaler DOES contract a bad deal that doesn't deserve to be bought.  Many times however the wholesaler is given a list of criteria that the "Buyer" wants so he puts it under contract and then can't move it to no fault of his/her own.  What about the other side?  Have you given your criteria to a wholesaler that says "sure I can get you lots of those" and then can't fill the order?

I'm an investor and a wholesaler so I've seen both sides.  I work in Dayton, Cincinnati, and Cleveland Ohio markets which get plenty of publicity on BP and has plenty of deals to be had and plenty of investors that operate in these markets.  I think there is more to the problem than the deal.... I think it is more of an integrity issue and people doing what they say they will.

OPEN FOR DISCUSSION - WHAT'S YOUR THOUGHTS OR EXPERIENCE WITH THIS? 

[Andrew Johnson]

Ozzy Smith It goes both ways but ultimately only one person is entering into a contract with the current owner. From what I observe the "eager cash buyers" grow frustrated with unrealistic ARV values and underestimated rehab expenses. Wholesalers hear from a guru "If you have a good deal, the money will follow!" In short, there's massive disconnect on what is considered a "good deal".

You can also take a look at how many threads there are from wholesalers looking for information on how to write an offer, how to double-close, how to keep an owner from knowing their a wholesaler, owners pulling out when they find out they were working with a wholesaler, etc. If you're a *new* cash buyer here on BP I'm sure you're going to read that. Can you blame them for getting cold feet? Since (in many states) there is ZERO barrier to entry it's just the nature of the business.

Not to mention it's not uncommon to see the same property on multiple wholesaler lists. If you're a rookie buyer, how do you know who you should deal with? Experienced cash buyers might be comfortable with it, new ones, less so.