Wholesale to the 3rd, 4th, 5th Power!

[Marty True]

As a "cash buyer" I am (or was) on many wholesalers' buyers lists. There is a fairly recent trend where real estate agents/brokers are getting on the "re-wholesale" bandwagon and basically adding on an additional $5k-$30k to the original wholesaler's contract+assignment price.

So a $100k property (which already includes the contracted wholesaler's fee) comes in on one list as $106k and then on another list as $114k and yet another list for $120k (or more). And because they are licensed real estate agents/brokers, they can legally advertise these off-market deals and basically put as much on top of the "connection" that they got it from, as they want.

This basically is making wholesalers worth a lot less when it comes to ranking where our deal flow comes from. If wholesalers are going to "get into bed" with so many other wholesalers and/or real estate agents and the property gets tagged with 2, 3 or 4 levels of "fees" then why waste time with wholesalers as a viable source of "good deals"?

I literally got a deal this morning, from a wholesaler, for $90k on a house. Then about 3 hours later, I got the same property emailed to me, by a real estate broker (that also wholesales) for $105k.

I'm sorry but as a licensed real estate agent/broker, unless you are somehow adding value to the deal, how are you putting a $15k fee on a deal that you will do absolutely nothing for??

I believe this is contributing heavily to why it is so hard to find good or great deals here in Florida and specifically in South Florida.

I'd love to hear everyone's thoughts and opinions on this...

[James Green]

@Marty True, I agree with @Pratik P. just simply ask if they are direct to the seller. I myself don't do daisy chains because as you've discovered you will find people daisy chaining properties and adding absolutely ridiculous fees on top of the original price, which no longer makes the property a wholesale deal. There are times that I do ask for a "finders/bird dog fee" if a buyer of mine buys a property that I've sent to them that I don't have under contract. I always get permission from the original wholesaler, this way it keeps the original price of the property.

@John Thedford you read Marty's post & could only focus in on those "unlicensed broker's" that steal all the equity, when it was plainly stated that it was the LICENSED BROKERS that were marking up deals they don't have under contract. You may be able to post properties to over 800 websites, but I can post properties to over 800 buyers that actually chose to opt-in to my buyer's list via my one & only lonely website. Plus if I wanted to I could post my deals on other sites such as Craigslist, Facebook, Zillow, etc....

I know you have a beef with wholesalers in FL & possibly wholesalers in general, but all of us aren't out there ripping off & lying to sellers.