Too Many REO wholesalers?

[Tim B]

After flipping houses for over 25 years I'm looking for a new way to make money in real estate. Unfortunitely the "renovating and flipping" business model has broken down. 3-4 years ago everyone started flipping then came the TV shows and then RE bubble burst!

Recently made several offers on potential rental properties - only to be beaten by 6 to 10 other offers.

If so many investors start wholesaling REO's (herd mentality) will they bid up REO prices too high - are there enough cash buyers for all these new wholesalers? What happens when the number of REOs start declining in the next 12-18 months?

Would be interested in vetern wholesaler opinions!