RANT: Why is Wholesaling Getting a Bad Rap?

Question

I've been reading and hearing both sides of the coin when it comes to why many so-called wholesalers are not doing their research (i.e. their due diligence). I've just had a conversation with someone RE: wholesaling, and it seems reasonable that part of the process consists of sifting through the "numbers"... am I wrong?

Also, for those who've been in this industry for some time, it would be apparent that you understand it is a numbers game: a lot of the deals aren't deal at all (they may be pure B.S.); this is why everyone must do their part to ensure a "win-win"... otherwise, what's the point? Move on to the next one...

Bottom line: stop complaining that there are no deals vs. work your @$$ off to find good ones, as well as whining that you get a lot of ill-repute people trying to scam you (BTW, you can't be scammed if you're educated in the process), vs. work you @$$ off to build more positive business relationships- either way, it is important that one's arrogance (or ignorance, depending on your point of view) is considered for making money at the end of the day.... everyone's NOT for everyone, period

Someone important in the forums made a good point that the industry as a whole suffers as the result of negative business practices; it also suffers from the lack of mentorship and community.

To YOUR Success,

Phillip L Lyde

Russell Ponce · Answer

@Phillip Lyde I think here on bp "wholesaling" is at times synonymous with newbie, and ill-informed newbie at that. The snyde remarks and borderline insults seem to stem from a general distaste of the flood of "guru" induced frenzy that has affected the marketplace in recent years.

To be fair, some of the newbies don't help themselves when, in their excitement, they start making statements that their actions havent cashed yet.

But really I think that a lot of times when folks are speaking of wholesalers in this manner, they are referring to an archetype of the worst case senario. Maybe its a form of slight hazing or something but for me in these last couple years of trying to make it as a wholesaler, anytime Ive asked for help or advice Ive never ever not once been denied or ignored by anyone here on this forum.

Jeremy T. · Answer

I don't know...it's pretty easy to separate the wheat from the chaff here on BP.  Having a picture (ANY picture) and taking 15 minutes to fill out your profile is a good start.

Gerald Harris · Answer

There are lot of wholesalers who are brand new that come into the market that don't understand how to package a deal properly to the end buyer.   There are tons of deals out there on a daily basis

There are some markets that are more active than others but ultimately Real Estate is what you make it.

In my opinion.  Real Estate deals are everywhere.   They are offline and online.  The wall that many people hit is they they real estate is property.   Its not.

Real Estate is People first.    You must connect with people in order to get the deals.    The reason people say there are no deals is they have not connected with people first.

This is the real key.   Your ability to get deals is really are your ability to connect with people and negociate to create a win/win situation.   True, some people aren't flexible.   Some are.

If you can't wholesale a deal it doesn't mean the deal is dead.   As long as you have a flexible seller, you have a deal

1.  Wholesale

2.  Subject to

3.  Lease Option

4. Real Estate Referral etc.

etc.........

Account Closed · Answer

I think why wholesalers get a bad rap they try to sell of the MLS and waste everyone time because if they are on the MLS, everyone has already seen them. Most wholesales want to make $10K plus on all deals and that leave, no meat on the bone for the buyer and the wholesalers want their money upfront before the deal close.

Joe Gore

Phillip Lyde · Answer

I like the fact that you focus on relational strategies vs. the high-pressure car sales practice I am starting to see with some people only wanting to unload their "unsellables" to me.

Thank you for your insight!

To Your Success,

Phillip L Lyde

Phillip Lyde · Answer

Thanks for the insight Joe; I also thought that it was somewhat odd to utilize that particular strategy if your intent is to wholesale in the first place (couldn't prove it though)... Also, I guess I'm looking at it wrong, but since wholesaling is for quick profit, shouldn't the margin be closer to $5k or lower, in order to ensure two things: 1) that you (as the wholesaler) make enough to move to the next deal ASAP, and 2) your buyer (i.e. more experienced rehabber/ landlord, etc.) can profit as well. Personally, I want to make money, but not at the expense of longevity in the profession.

I'd love to hear your thoughts on this...

Thanks again!

To Your Success,

Phillip L Lyde

Phillip Lyde · Answer

Thanks Russell... I can sincerely appreciate the sentiment :-)

It seems that marginalizing wholesalers as simply "newbies" is counterproductive to building some legitimate business relationships. And I agree many of the mistakes I've seen (mind you, I'm fairly new as well) are no different than in other industries where rapports are essential (i.e. MLM or network marketing)... I actually thought that in REI, it would be vastly different, but experience and personal development are still eminent :-)

The mistakes I've committed in the past have definitely prepared me for this, and I look forward to the challenges with it.

Thanks again!

To Your Success,

Phillip L Lyde

RANT: Why is Wholesaling Getting a Bad Rap?

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