Lender · San Antonio, TX · Member since 2020 · 1k+ posts · 1k+ votes
*** This is not a post bashing wholesalers ***
I'm on a bunch of wholesaler lists, and I'm also a real estate agent that only works with investors. I basically live in the MLS, so when I get emails from wholesalers with deals they've found on the MLS, they're pretty easy to spot. There is one large wholesaler in my area that is basically just negotiating great deals on MLS listing, and then pumping them out to their buyer list. I don't really see anything wrong with this practice, but it seems a little funny to me, because the subject line is always "Off Market Deal..." While it's pending, I guess it is technically off market, but I don't think this is really what people are expecting.
The fact that some of the most successful wholesalers in my area are doing this, really just proves that there are plenty of great deals to be had on the MLS. They're just willing to go out there and make offers. In the last few weeks, I've seen a lot more of these MLS wholesale deals, which confirms my suspicion that this is a great time to be out making offers.
I saw one this morning that was listed at about $130K, and now the wholesaler is marketing it at $100K. They must have it locked up for even less. One of my clients had considered offering on it, but eventually passed, because they were "too far apart". I guess I should have done a little more prodding on that one.
In any case, is this something you're seeing in your market? Do you check to see if your wholesale deal came from the MLS? Do you care?
Investor · Tampa, FL · Member since 2011 · 2k+ posts · 3k+ votes
6y
I don't care where the deal came from as long as it's a deal. I know many people that do care though, and won't buy something that's been listed. The bigger issue in our area is most "deals" are based on randomly generated repair costs and pie in the sky ARVs.
Real Estate Broker · Vancouver, WA · Member since 2018 · 168 posts · 120 votes
6y
There are several brokerages out here that do that exact thing.
When I was first starting out, I would drive all over the place for investors. I eventually stumbled into a licensed brokerage that had dedicated a portion of their team toward wholesaling deals.
They would secure some decent deals from time to time, and I even had one under contract before the buyer I met here on BP backed out because of cold feet. It taught me very early on that presenting a low-ball offer is always better than presenting no offer at all.
I think they have their place in the industry, so I personally don't mind them. As long as the numbers make sense on my end, that's all that matters at the end of the day.
