With the explosive appreciation in Tampa, is wholesaling going to vanish there?

Question

Like it did in MIami and is in SF, NYC, LA, Boston and other high priced housing markets

Jerryll Noorden · Answer

Man, I wish I could say that that isn't true... but dang it .. I don't think I can.

But allow me to say this though.

When we wholesale our deals, we give the seller all options. We advise them to get in touch with 3 agents. This is to make sure they know what their house is currently worth (which makes things so much easier for us. Sellers think their house is worth 3 times more because their firstborn was born right there  on that blood-stained sofa in the living room tight there)

Then we give them even more options, we can either buy it ourselves, or we can wholesale it. 80+% of the time they rathe rus wholesale it.

@Terrell Garren it is not "wholesalers" that are evil. It is those that do it wrong that are a drag on society, and sadly there are a lot. Although you are wrong, I can't blame you for saying that because if you pull data, you would be correct that the sheer majority of wholesalers are simply doing it wrong.

But allow me to restore the faith you have in wholesaling and wholesalers and hopefully inspire all others to do it right.

Now all you wholesalers out there. Do you see this man's opinion about you? Ask yourself this. Can you blame him?

Stop listening to all these gaadang influencers that teach you how to lie and manipulate sellers into signing a contract with you.

Be awesome, and solve problems.

You do not need to compete with agents and the market. Even in crazy markets, we get awesome deals. You just need to do it right.

Luke Skinner · Answer

Wholesaling is dead. Why would a seller want to be ripped off on a home in a strong market like Tampa when they can reach out directly with a licensed agent. Have them put it on the market for cash or hard money only offers and let the bidding wars go and cut out the wholesaler.

Its got so bad here with Wholesalers that I see them put properties on the MLS that they have on an assignable contract and that is where they're finding their cash offers! I know because I am currently trying to help a seller get out of this exact situation.

Patricia Steiner · Answer

Not only is it dead in the Tampa Bay market, it's tainted.  There have been more than a few transactions that went more than sideways and the owners were vocal in sharing their stories.  Our market is too hot, inventory too low...if wholesaling is your game, find a market where owners need assistance to find a buyer.  And, that's not here.

Jerryll Noorden · Answer

I don't think you understand the concept.

I still get crazy deals. Wholesaling will never be dead, and I can prove it to you.

Would you be interested in buying a property for 50 cents on the dollar where you will get a solid ROI flipping it, or holding it?

If the answer is yes,

that means wholesalers will thrive.

You say wholesaling is dead because you assume you can't get good deals anymore.

That is because most people do not understand lead gen. There will always be people willing to sell their houses far below market value. ALWAYS, regardless of the market.

The one thing you do not understand is the fact that motivation has nothing to do with money.

A truly motivated seller doesn't care for money. They care for no longer owning that house.

Adrian Castillo · Answer

@Mike Schorah I think I understand what you may be referring to, the competition is so fierce that everyone and their grandmother is trying to do wholesaling. Therefore, those that are in distress get so much marketing material along with having a supercomputer in their bare hands. (phones) the homeowner already knows that their property is worth more than whatever a wholesaler is offering. Making it much harder to negotiate a make any transaction profitable.

At the moment, like all the others that have commented, there's always going to be a need for a quick sale. The only difference is, will that quick sell be profitable...

Obed Calixte · Answer

What do you mean by vanish exactly? Opportunities will noticeably decrease or wholesaling will be an endeavor not worth taking on?

I get Miami wholesale deals in my inbox nearly every day. Some look to be pretty solid on paper. Not my market however so I don’t dig further.

To John’s point - there will always be individuals in need of quickly selling their properties or need creative solutions to move on. If you can connect seller with buyer at a number that works for everyone, there will always be a market for wholesaling. It may just not look like how it has in the past.

Bob Stevens · Answer

NO, there will always be deals,

Terrell Garren · Answer

Taking advantage of people that are in a bad situation and are unaware of better options to sell a property.

Jerryll Noorden · Answer

No

Please understand this.

It is not about what niche you are doing (wholesaling, flipping buy and hold).. it is about lead generation.

Think about it. If you get a house under contract for 30 cents on the dollar, will you have trouble wholesaling it?

No. It has nothing to do with the niche. It has to do with finding motivated sellers. In any market, there WILL be people that don't care as much about the money as getting rid of their problems owning the house.

Again, it has nothing to do with wholesaling. It has to do with lead generation.

With the explosive appreciation in Tampa, is wholesaling going to vanish there?

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