Wholesalers. I don't understand their mindset

[Mark Spritz]

So here is my dilemma. I think for me in my investing, either going the Multi-Family Rentals or Flipping or BRRR, still trying to decide. But I think in all cases using a Wholesaler might be a great idea, but I can't get over the fact that if they have these great properties.

Why aren't they doing it themselves? 

I mean if you find a property that you get under contract for 100K, and you estimate Repairs at 25K, and that you can then sell it at 200K, why wouldn't the wholesaler do that all themselves? And regarding the property itself, if that was truly that great of a deal, wouldn't the seller also know it, or the seller get a realtor to tell them that, or a retail buyer see the listing and know that. It is just so confusing to me that there can be such deals. I am kind of at the, "sounds too good to be true" stage.

Thanks

Mark

[Derek Robinson]

Most wholesalers I know either don't have the capital to invest themselves, or hand pick the best deals for themselves and they wholesale the leads they come across but aren't as interested in.  For example, I know a guy that only buys multifamily, but comes across good single family deals all the time.

I'm surprised by the people that turn to Wholesalers instead of realtors.  Some want a quick sale, some just absolutely hate realtors.  Sometimes a house is distressed to the point where banks won't lend so they can only work with cash buyers, throwing realtors in the mix just slows down progress on finding a qualified buyer.

The market I invest in is pretty cool, so a house will sell for 60 or 70k, but it will be on the market for 6 months.  If a seller wants cash in less than a month, wholesaling for 40k will get the job done.

Whatever the reasons, did doesn't matter from an investors perspective.  You just need to know what a good deal looks like.  Network with as many wholesalers as you can and good deals will more than likely come your way.