That’s crazy David green hates on Wholesaler’s now

[Gerren Castle]

That’s crazy Davie green hates on Wholesaler’s now and acts like they’re not a vital part of the Flippin community. Must be nice to have been a cop before and get into this business with capital and become a broker and start a brokerage but what about the other guys that don’t wanna go that route but still have the drive to get in. Definitely not a fan of that guy now.

[Don Konipol]

Quote from @Gerren Castle:

That’s crazy Davie green hates on Wholesaler’s now and acts like they’re not a vital part of the Flippin community. Must be nice to have been a cop before and get into this business with capital and become a broker and start a brokerage but what about the other guys that don’t wanna go that route but still have the drive to get in. Definitely not a fan of that guy now.

I am not familiar with David Green, so I can not comment on that.  But, I can give you my take on “wholesalers” after 40 + years in real estate

1. The whole definition of real estate “wholesaling” has changed.  To wholesale is to BUY something at a bulk price, and RESELL at a higher price.  40 years ago a real estate wholesaler” finalized the purchase of properties, found a buyer at a higher price, usually an investor, and resold.  Some times they utilized simultaneous closings.  The people that placed a property under contract and the “flipped” that contract to someone else were known as FLIPPERS. Now what we used to call flippers and flipping is called wholesalers and wholesaling. It’s an incorrect use of the term, but so be it. From here on in I’ll use the term wholesaling as it’s used now.

2. There is absolutely NOTHING WRONG with either wholesaling or wholesalers.  What’s wrong is when it’s done unethically, dishonestly, or illegally.

3. The legal basis for most states “anti wholesaling” legislation is that wholesaling is the practice of real estate brokerage without a real estate brokers license.  The problem with wholesaling with a real estate brokers license is that in all states that I am aware of, a real estate licensee has an obligation of honesty in dealing with the general public.  The argument can be made that if the licensee knows that a property’s value is far below the value perceived by the seller they have the obligation of informing the seller of such.  A non licensee has no such obligation. 

4. There are a number of problem areas resultant of some wholesaling methods by some wholesalers.  This includes wholesalers who never intend to close or can’t close unless they find a buyer at a higher price, and DO NOT DISCLOSE such to the seller.  In other words they allow the seller to believe that he has a probable sale, that’s not contingent on the contract flip to an individual paying a higher price.  The wholesaler then uses some “weasel” clause to back out.  

5. The other major “problem” area is the market being flooded with inexperienced and unknowledgeable wanna be wholesalers, whose total experience consists of watching 8 hours of YouTube videos by a pitchman attempting to sell mentorships.  If they do get a contract they’ve often analyzed the value of the property incorrectly, priced repairs and improvements wildly inaccurately, and do not possess the ability to shepherd a deal through the inevitable problems that pop up during the contract period.

6. The real problem with above is that most sellers that will sell to a “wholesaler” are desperate.  They place their entire financial future on the believe that they have “sold” the property.  They do not realize that what they signed  is not a firm contract moving to closing; what they signed is a free option to purchase for the buyer.

I can not recall seeing any wholesaling “haters” on BP.  I’ve seen plenty of people who have problems with dishonest, unethical, illegal and or incompetent methods being employed in the name of wholesaling.  Further, the negativity BP posters display as to the financial prospects of a wholesaling “career” is not HATE, as many wanna be wholesalers have stated; it is actually the culmination of years of experience in the real estate industry and the observation of how few people who try wholesaling are able to created a profitable job or business; of how misled people are by the hype associated with these guru marketing programs; and by how much REAL real estate knowledge and experience is needed vs what is being sold by people with a financial interest in selling these mentorship’s.