Is buying from a good wholesaler better?

[Kevin Wiley]

Hey BP family, 

What are your thoughts on using wholesalers consistently vs doing your own marketing? I know there is better margin in doing your own marketing, but can that be compensated for by using wholesalers consistently? Wouldn't it be better to do 1 deal a month with a whole saler instead of every other month with your own marketing? 

Also, does anyone have a wholesaler they recommend In the Tampa/Clearwater area? 

Thanks! 

[John Thedford]

BEFORE you deal with any unlicensed broker consider these ideas:

1. Always require WRITTEN comps that can be substantiated

2. Always require WRITTEN bids from LICENSED contractors

3. NEVER pay a non-refundable fee

4. Always correspond via email so there is written record to bring suit in the event of misrepresentation.

Remember, these are middlemen trying to play RE agent without a license. Make sure they provide GOOD comps. Make sure if they are representing an ARV value make them provide ARV comps. If they make claims about rehab costs, make them provide WRITTEN bids from contractors. They are brokering real estate so make them PROVIDE good quality information like you could get from a licensed broker. Many of these unlicensed brokers simply make up figures that sound good but cannot back them up.

Unlicensed brokers generally have no insurance. From personal experience most just pull their ARV out of thin air. Lets see: claim it costs x and it will sell for y. If someone uses an agent, an agent won't provide or should NOT provide the BS an unlicensed broker does. They should not or do not provide rehab figures (to protect themselves). They should tell a prospective buyer to get their own bids. They can provide comps in some situations on an updated unit vs an original unit. Agents have something to lose, can be fined, and have their license suspended or revoked. Unlicensed brokers, acting as fringe operators skirting the laws have nothing to lose. They are acting as an agent without the laws, ethics requirements, education, and insurance that are vital IMO.

If they do NOT own the property or are not licensed they are operating as unlicensed brokers which is a 3rd degree felony in Fl. I have seen quite a few that play all kinds of games, taking potential buyers through properties representing them as friends, co-workers, inspectors, and other BS. If they advertise the property, blast out emails, etc and do not own it or are licensed, this is another example of violating license laws. Most have to operate under ground because they know they are operating illegally.