Help with Wholesalers...

[Devon Garbus]

Hi guys!

The Tampa, Fl market is flooded with wholesalers. Which is fine. some of my best clients are wholesalers.

The problem I have been having (A LOT OF) this year is 'new' wholesalers who take some course and then try to make millions off of tiny deals.

Problems I've been having:

*They don't know how to read/write offers/contracts. Not the biggest issue I can hold someone's hand if I need to. I just get a little peeved when someone is charging 15k wholesaling fee but can't read a standard FARBAR.

*Their 'clients' don't know what they are doing. The actual owner of the house thinks the house is under contract and guaranteed to close in 1 week or two weeks. Now the wholesalers are desperate to make their (way too high) margin selling a house with no D.D. period at all. 

*They themselves don't know what they are doing. The send over contracts for my clients to sign that look like they were done on the back of a restaurant menu. The offer I sent over will have terms on it that aren't anywhere to be found on the assignment, and did I mention that when I called I specifically asked if they own the property and they said yes? 

Today's example:
See fsbo on friday on Zillow, looks like a great deal and call a client, he immediately says write up a full price offer. We do so and send it over after a brief phone call with the person who says it's their property and please make the offer out to hisname with a fast closing.

Property is a tear down in a real good area (I guess you could rehab it too but that margin would be small, maybe renting it would work after rehab). Issues that often come up with surveys and all smart people will need to do a survey/tree inspection/sinkhole research to make sure we will be able to get a house on the property. Since some of this goes through the city I've never seen it done in less than a week. My clients and I tend to offer 15 dat DD and then compromise at 10 days if the seller balks at that, just to make sure these can get done in time. 30 day from contract closing. Sent offer early saturday afternoon.
Seller didn't know what owner's policy insurance and related fees are (standard verbiage that just gets checked off on an offer nothing added). No big deal I explained it.
He said the timeframe wouldn't work out so I said to counter it. He didn't know how to do that so I explained to him cross out the terms you don't like write it in and initial it. He did. Asking for a 5 day closing with 0 D.D. received sunday afternoon.

Today I call him and explain to him that this client is doing 5 deals a week and will need surveys/inspections/title etc and there is no way to do that in 5 days, even if he was inclined to.

I'm told that "this is an easy deal and I'd never sell any property with a 'kick out clause' ever and I have two showings today so why would I even bother with your offer." He then confessed he's a wholesaler with a commitment to close in 15 days. Which is fine but I like to know these things before negotiations start so my client knows in advance... 

Why the heck would you handicap yourself with 15 day time to wholesale when you don't have an end buyer in mind you are just shopping it on zillow and bandit signs?

And since when is a full price offer (we didnt even ask for my commission paid by seller) and a 30 day closing something to scoff at? Who is teaching these wholesaling wunderkinds? How can I make them see reason so that I can make them a gratuitous amount of money (hell more then ill make on each transaction most of the time)