How to identify the good wholesalers vs bad ones?

[Matu Ambaye]

I know a lot of people say they don't use just any wholesalers for their deals, so how do you narrow down the ones who bring you good deals or the ones that bring bad deals??

[Corby Goade]

I have no problem buying from a wholesaler. The problem I see more often than not is that they've negotiated a sale price that leaves them with a reasonable profit, but no room left for the investor who either has to do rehab and rely on cash flow or rehab and pay a realtor, closing costs (twice, possibly) holding costs, etc. In order for their to be room for everyone to make money, the wholesaler has to negotiate a KILLER deal. That's not easy and that's why there aren't a ton of wholesalers out there who are making it. Newbies think you can mail a few postcards or make a few calls and round up a few deals from that. Nope, it's hard work and not many people are up for it- I sure know that I'm not.