What Value Have Wholesalers Brought You as an Investor?

[Brett Snodgrass]

We are currently seeking investors' opinions on wholesalers & what Value have they brought you? Have they brought you any value?  Do you think that having a wholesaler relationship is a benefit to you as an investor? I know markets are different than where I am at in Indianapolis, Indiana, and do you think there is a need for wholesalers in all markets in the US?  Are Wholesalers really the scum of the earth...as some say?   We are currently writing something about the "Value of Wholesalers" and would love to here from all different types of investors around the US? 

Do you consider a Wholesaler Relationship as valuable as have a good contractor, or a good CPA?

Thanks for the Replies...  

Brett

[Lee Smith]

@Brett Snodgrass  I love working with GOOD wholesalers... The problem is the GOOD ones are VERY few and far between... 

MOST people go the wholesale route because it's preached that it's quick cash for those with none... What they don't preach is how much hard work is involved, or how reputation is EVERYTHING.... They don't preach you need to know your numbers(ARV, Repairs, etc).

I don't wholesale as much anymore because I am mainly looking for myself and my clients. I have bought probably 10-15 properties over the past year from wholesalers. I love working with the good ones.. In fact most of my good ones call me up and drag me along in the car to review the properties the first time...


My favorite example of a bad wholesaler:

him: I got a property over at 123 main st I want to sell you for 18k...

me: Ok, how much work does it need?

him: They say it needs like 5k of work...

me: Who is THEY?!?  Have you seen the property?

him: Well the Realtor told me it needs 5k of work...

me: ........  What kind of work does it need?

him: Can't you just like go out and look for yourself?

me: /sigh Do you have it under contract and what is your wholesale fee on this deal?

him: I get 5k....

me: Do you even have it under contract yet?

him: I need a letter of intent before I can get you in to see it..

me: Well it sounds like you don't have it under contract, and if it's listed with a Realtor I can sidestep you out of the deal, IF I wanted to... AND it doesn't seem like you have really done ANYTHING worthy of 5k.......................