Wholesalers Are Becoming A Problem

[Matthew Crivelli]

Bigger Pockets family, how do you all feel about wholesaling and the lack of defined rules and regulations? I know some states are starting to crack down but most areas are wide open for these people to do pretty much whatever they want. I had two clients this week call me to let me know we wont be moving forward on their projects. Confused I asked why and they both had the same answer! They put their offer in with a wholesaler and apparently the person wholesaling took the signed assignment contract but never signed it themselves. Then turned around and used it to get a higher offer. A-lot of these wholesalers are snakes and it seems like no one cares to stop it! I just think, if a licensed agent did something like that they would lose their job! I'm really just venting but also would like to hear other stories of backstabbing wholesalers. No ethics or transparency it's a real shame! Is their even any recourse for the investor?

[Jonathan Greene]

I feel like saying "wholesalers are becoming a problem" is like saying "there is a little plastic in our oceans." Uh, yeah. I agree with everything you said, but this has been going on since the caveman era. Since there is no licensing, of course, it's sketchy and they always will use your offer to get a higher one. Most wholesalers are getting burned as much as they burn right now because they don't do vetting and get all excited for high "cash" offers only to find out the names didn't even match on the POF. I wish you were required to present a POF to take on a wholesale deal and you had to buy it if you didn't sell it with your own money. Boom, 99 percent of wholesalers would be gone.