What is your opinion on wholesalers?

[Katlynn Teague]

Good morning BP,

I have a couple of questions this morning

-What is your opinion on wholesalers?

-Have you had a good experience when working with a wholesaler?

-What has been your biggest draw back from working with wholesalers, when purchasing properties to flip?

I am a licensed real estate agent who works at a national wholesale brokerage. I started this path to build capital so I can start purchasing my own properties to build a rental portfolio. As well as learn from the investors I work with, make connections in the industry and learn real estate investment from the inside out. My company has a five-week training course that teaches you all of the ins and outs of the wholesaling business. The training is intense, but the training also never stops and that is what makes me good at my job! 

However, I have many... "wholesalers" reach out to me who really do not have a clue in the world what they are doing. These people bring me daisy chained properties with inflated ARV's, laughable rehabs and obnoxious sales prices. All of this to say, that these kinds of wholesalers tarnish the reputation of the wholesalers who are in this business to help people on their path to financial freedom. I have seen many investors cringe at the word wholesale because they had such a bad experience with one in the past and officially write wholesalers off.

I absolutely love what I do, I love getting to meet people that started with nothing and were able to build an empire for themselves and their families. I love helping home owners who are on the verge of foreclosure pay off their debt to start over. Families who had a house fire and lost everything, being able to give them a fresh start. I also love helping people on their journey to financial freedom while helping them build that generational wealth. 

With that being said, What are your thoughts?

[Bob Stevens]

Most are clueless; however, I do get about 20 a week sent to me in my market from them. Most no nothing about the property except for the photos they were sent, (photos are meaningless) They say but bob look at the ROI, again they are clueless, they do not even know how to determine the net cap and know nothing about the area,. So they are very useful you just need to know what you are doing.

   Also, all due respect I NEVER deal with realtors. I have done about 500 in my market and only used a realtor 10 years ago for a few.  I have found that most NOT ALL, realtors do not have a clue either. They show up at a house not knowing anything about it. How many deals do not close as they are off by 20 30 40k ( realtor fees). They all have the same line. " Multiple offers highest and best". I have to tell them what to offer. Just last year when I purchased my primary. Ask was 650 I said offer 450, Oh no , that's to low, you will piss off the seller, (EXACTLY what I want to do) I am not comfortable putting in that offer. I said Ok I will deal directly with the owner. Oh, ok I will do it. Sure, enough got it for 525k including the 15k golf membership, realtor made 15k for DOING ZERO work. All she did was get us in. Not a bad gig. 

So everyone needs to know their market, they should know exactly what to pay and where to buy. If they have to ask the realtor if this is a good deal they should not do the deal. Never leave that up to the wholesaler or the realtor,, know what you are doing. 

All the best