Are there any real wholesalers in Cleveland?

Question

I want to pose a kind of survey to the people of Bigger Pockets who invest in Cleveland.

I’ll start by saying that I have no issues with wholesalers. They get a slimy reputation, but there are bad people in all industries. But, I’ve yet to come across one who has any kind of decent reputation in Cleveland. They all claim to be doing deals but are unable or unwilling to give any kind of testimonial from buyers they’ve worked with. If their buyers had so many great experiences buying their deals, then where are they?

There are plenty of buyers who got screwed and many more that came close to buying a deal that they would have been screwed on. I’ve met lots of them, yet I never meet people who have seen success buying from a wholesaler. And I meet a lot of investors.

I posed this idea to one of the popular local Facebook groups a while back and I got bombarded with wholesalers wanting to add me to their lists and talking a big game. Though, when I asked them to show me any kind of proof that they have wholesaled a deal to an end buyer and that end buyer actually flipped or BRRRR’d the property successfully, they all go silent. So I’m giving this group a shot.

Let’s not go into the ethics of wholesaling because that’s a black hole. I’m also well aware that many of the good wholesalers only need to sell to their go-to repeat buyers.

Has anyone who invests in Cleveland bought properties from a wholesaler and actually had a good experience? Meaning, they were given realistic numbers and weren’t blatantly lied to? I'm not necessarily asking for contacts, I just want to know if they exist!

James Wise · Answer

Wholesalers; "I've got a great deal for you. $45,000. Needs $5k rehab. ARV $150k."

James Wise · Answer

Just a bunch of schmo's posting misspelled ads on Craigslist.

Ryan Evans · Answer

Hey @Dan Sarao, I completely agree with everything you said. I never discounted the work that goes into wholesaling, but that's not the point.

I didn't mean to claim that I know every single wholesaler, but I have either met or been directly contacted by many of them, including yourself. And no I haven't fully vetted each one, which is why I'm seeing if anyone else can back a few of them up with something tangible. I'm just talking about my experiences and wondering if anyone else has had a different experience.

I don't need to trust wholesalers because I can do my own due diligence. I live in Cleveland and have a pretty good grasp on how to estimate rehabs and run comps.

My point is if you or anyone else reading this are one of the good ones, then fantastic. I'd like to chat. But I'd also like to talk to your buyers and see the projects they've done. Flippers love showing off their projects and I don't mind driving across town so if these buyers do exist then I don't see why that would be a problem. Especially because it would give the wholesaler tons of credibility a new business.

Dan Sarao · Answer

@Ryan Evans - pleased to meet you.

Wholesalers do get a bad rap, and there’s some truth to it. However, most of those who cause the bad rap are those who are inexperienced individuals who do not know what they are doing. It is also true that there are severaL bad, untruthful and untrustworthy realtors, property managers, buyers, sellers, etc. in every market.

There are plenty of established, reputable firms in the area.  I find it hard to believe that you know all of them or that you have worked with all of them.

Posting something on Facebook you should expect to get blasted by people who probably don’t even read your post in full.

Wholesalers do a tough job. It’s not easy to get off market leads. It takes a lot of effort, time and for most firms marketing dollars.

If they are worth their salt they should do as much information gathering as they can and provide what they have to potential buyers. With that being said, like with any sale it is always the buyers responsibility to due their own due dilligence. Don’t believe what anyone tells you without confirming, whether it’s a wholesaler, realtor, FSBO, etc. That’s just asking for trouble.

The only thing I can suggest is if you don’t trust them or are not comfortable in your due dilligence abilities just don’t buy from them.

Are there any real wholesalers in Cleveland?

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