Why do I have no success with wholesalers?!...

[Drew Whitehead]

Maybe I just need to rant but I have always had a hard time with wholesalers in my experience. Why do some wholesalers take a house listed on the MLS, get it under contract for a slightly reduced price, then put their markup on it so it is near the original asking price on the MLS?? I know everyone is trying to make a buck but come on... This seems to be how a lot of deals are on all the distribution lists that I am on.

I do so wholesaling as a great tool to make some money if you find the deals off market and they are ACTUALLY A DEAL! When comparing the off market deals with comps in the neighborhood, they are always shooting way low on rehab costs and ARV's. I scour the MLS every day for new houses and deals and make offers on the ones that have good deals but I know the real deals are typically found off market. This is where I am trying to rely on these wholesalers to find actual good deals and I would pay cash and close within 2 weeks! I work a day job and flip on the side so my time in finding is limited in finding offline deals.

Maybe I'm just ranting but I've always had a bad taste in my mouth with wholesalers because I see it as a quick, middle man way to earn a profit? 

Thoughts or help?

[John Thedford]

It is sold as a GET RICH SCHEME. I always ask WHY would someone give away 40K, 50K, or more for a 5K assignment fee. I wouldn't. A local agent friend of mine used to assign. He recently told me he no longer assigns and gives away the bulk of the profit. His last deal netted him about 40K on a flip. He just listed another one that looks like a 40K home run. The other problem is most of these people are unlicensed, have no oversight, and worse than that, no money. They think RE is fast easy money. It isn't. Often times, when you see the word "wholesaler" that means unlicensed broker...most with no education, no money, etc...all believing they will make tons of money. I try to push them into buy and hold. Over time, this will make LOTS of sustained income. Last but not least, the "wholesaling" garbage has been pushed on BP. I recently talked to a guy that paid $5400 for a "wholesaling" class here locally. One BIG problem: he is operating illegally. He doesn't know it yet, but he WILL find out:) You CAN bank on that.