Wholesale problems today

[Justin Badillo]

What’s the biggest issues with wholesaling in today’s market and how do you suppose it could be fixed?

[Jonathan Greene]

The problem isn't with wholesaling, it's with wholesalers. The problem is always people. It has a murky reputation because of the people. If all wholesale deals were transparent, it would be a lot easier. There are too many new investors looking to wholesale as a way to build up money, but because they want to make money quick, they put high spreads in when they aren't warranted and go way too high on ARV and way too low on repairs. I also think wholesalers' biggest mistake is sending every deal to everyone. They should be focused on a core group of maybe 5 solid investors and they don't need more than that to close all deals. Maybe they get a little less on each one, but they go smooth and they know it will close (and so does the seller).