Detroit Wholesalers: Why Do Your Deals Suck So Bad?!

Investor · MI · Member since 2023 · 23 posts · 9 votes

Wholesalers in Detroit are making it nearly impossible to find good deals. Too many are locking up properties at retail prices and tacking on outrageous assignment fees, leaving no room for investors to profit. It feels like the focus has shifted from creating value to chasing quick payouts, with little regard for the end buyer. The result? Investors like me are left sifting through overpriced junk instead of finding real opportunities.

2 Reply

137 views

Most Popular Reply

Arsen Atanasovski

Investor · Rochester, MI · Member since 2017 · 1k+ posts · 584 votes

I can say in Detroit the wholesaler your talking to has most likely found that deal from 2-3 other wholesalers, they literally have to payout 2 - 3 other parties to get the deal and this is what the fees are high and the deal makes no sense. If you were to buy direct from the owner you will get great deals! I only purchase direct from owner and no assignments. It’s just not worth it in Detroit especially with the low price points.

2 Reply

See this reply in the discussion

10 Replies

Jump to latestLatest

Sort by

Aristotle Kumpis
Specialist · Long Beach, CA · Member since 2011 · 889 posts · 401 votes
1y
Isn't this happening in many markets thought? I see agents and wholesalers trying to sell properties that are supposedly wholesale, but they sell at retail after it's marked up so much.
0 Reply
Arsen Atanasovski
Investor · Rochester, MI · Member since 2017 · 1k+ posts · 584 votes
1y
I can say in Detroit the wholesaler your talking to has most likely found that deal from 2-3 other wholesalers, they literally have to payout 2 - 3 other parties to get the deal and this is what the fees are high and the deal makes no sense. If you were to buy direct from the owner you will get great deals! I only purchase direct from owner and no assignments. It’s just not worth it in Detroit especially with the low price points.
2 Reply
Travis Biziorek
Investor · Arroyo Grande, CA · Member since 2014 · 1k+ posts · 1k+ votes
1y
Quote from @Chris Morris:

Wholesalers in Detroit are making it nearly impossible to find good deals. Too many are locking up properties at retail prices and tacking on outrageous assignment fees, leaving no room for investors to profit. It feels like the focus has shifted from creating value to chasing quick payouts, with little regard for the end buyer. The result? Investors like me are left sifting through overpriced junk instead of finding real opportunities.

This has always been true. It's nothing new.
Does it suck? Yes.
Is it how you outcompete other investors and find the real deals? Also, yes.
If you don't like doing it, that's understandable. But there's no sense in complaining because it's not going to change. And the fact that it's a pain in the butt is what makes sifting through all that garbage so profitable.
0 Reply
Alex KhanPro Member
Specialist · Southeast Michigan · Member since 2015 · 302 posts · 244 votes
1y
Quote from @Chris Morris:

Wholesalers in Detroit are making it nearly impossible to find good deals. Too many are locking up properties at retail prices and tacking on outrageous assignment fees, leaving no room for investors to profit. It feels like the focus has shifted from creating value to chasing quick payouts, with little regard for the end buyer. The result? Investors like me are left sifting through overpriced junk instead of finding real opportunities.
You may just be dealing with rookies instead of
Pros…….
248-979-8119
0 Reply
Edgar U.
Real Estate Agent · VA · Member since 2008 · 420 posts · 175 votes
1y
I deal in multiple states, and it's a nationwide thing tbh.
0 Reply
Chris Morris
OP
Investor · MI · Member since 2023 · 23 posts · 9 votes
1y
Quote from @Alex Khan:

Quote from @Chris Morris:

Wholesalers in Detroit are making it nearly impossible to find good deals. Too many are locking up properties at retail prices and tacking on outrageous assignment fees, leaving no room for investors to profit. It feels like the focus has shifted from creating value to chasing quick payouts, with little regard for the end buyer. The result? Investors like me are left sifting through overpriced junk instead of finding real opportunities.
You may just be dealing with rookies instead of
Pros…….

Lets Talk!
0 Reply
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
1y
this is the same in all markets .. guru constantly pumping new folks to wholesale .. for every 3 that enter 3 then quit but it mucks it up.
Podcast Guest on Show #222
JLH Capital Partners51 Review
Website View Page
1 Reply
Drew SygitBusiness Member
Property Manager · Royal Oak, MI · Member since 2012 · 13k+ posts · 9k+ votes
1y
@Chris Morris have ALWAYS seen bad "deals" from rookie wholesalers that really don't understand what they are doing to provide value to the industry.
It's getting worse because the real estate market has recovered from the 2010 Crash, yet many are still using tactics & methods developed during this time.
Everyone in the industry needs to go back and look at what was being done BEFORE 2010 and start using those methods, updating them with current technology.
[email protected]248-209-6824
Logical Property Management4.9462 Reviews
Website View Page
1 Reply
Ken M.
Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes
1y
Quote from @Chris Morris:

Wholesalers in Detroit are making it nearly impossible to find good deals. Too many are locking up properties at retail prices and tacking on outrageous assignment fees, leaving no room for investors to profit. It feels like the focus has shifted from creating value to chasing quick payouts, with little regard for the end buyer. The result? Investors like me are left sifting through overpriced junk instead of finding real opportunities.
Pro Tip: The average wholesale contract is for a 30 day "inspection", while the wholesaler looks for a buyer. Since it's rare to find a buyer, the agreement expires and you have a willing seller to negotiate a deal with.
0 Reply
James Wise
Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes
1y
Quote from @Chris Morris:

Wholesalers in Detroit are making it nearly impossible to find good deals. Too many are locking up properties at retail prices and tacking on outrageous assignment fees, leaving no room for investors to profit. It feels like the focus has shifted from creating value to chasing quick payouts, with little regard for the end buyer. The result? Investors like me are left sifting through overpriced junk instead of finding real opportunities.

It's not a Detroit thing. All a "wholesaler" is, is an illegal real estate broker. Uneducated idiots are not going to be able to present you with anything good. The very fact that they are engaging in the business model of illegal brokerage is all you need to know.
0 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.