Investor · Hamilton, OH · Member since 2016 · 272 posts · 77 votes
I have always found my own properties. Now that I'm starting to go after more, I might start to use these guys. I fully understand that they're there to make a buck finding me a lead and I have no qualms with them making something off their work. But if a wholesaler brings me a deal based on criteria that I have previously given him is it rude/unprofessional/just not done to try to bargin with them over the selling price? I ask here so that I don't look like a fool later if it's pretty much a vote up or down rather than a negotiation. So what is standard practice? I don't want to offend the guy and never get a call again if I am in the wrong on that. I'd rather look like a newbie here than in front of the guy who I might be doing business with for a long time.
As a wholesaler I get all kinds of properties that don't always make sense for some buyers but does for others. I can't tell which property is best for whom, so I have to send the info out to everybody and let them select the deals that they like.
I am a wholesaler in Orlando and I only mark up the deals that I'm selling with other investors houses only a few thousand dollars. But the price is ALWAYS negotiable. Don't do it as a practice but only when the numbers don't make sense.
@Brian Pleshek You CAN negotiate with wholesalers, but it doesn't mean they'll take the offer. Also, they provide a valuable service to cash buyers/investors if they are actually a good wholesaler, and they have already built in 30%-35% of the ARV for your profit, etc. so why haggle and possibly lose a deal over a couple grand? If your already making $25,000 and they're making $5,000, I doubt that they'll be too willing to negotiate, but anything is possilble. I agree with @Account Closed that you should negotiate if the price dosn't make sense for you. But if you have a good wholesaler, the price will always make sense for everyone involved.
@Brian Pleshek, show them examples of deals YOU found, and tell them how many extra dollars you might pay them to find the same quality of deal. It's a good opportunity for you to establish your criteria eg. $/sqft; x% gross monthly rent return; neighborhood grading, etc.
But if you change your own rules when those criteria are met, expect to be black listed! Cheers...
Thank you for replying @Chris Piper, @Account Closed. I'm definitely happy letting everyone have their piece of the pie, especially since they're providing me a service. I just haven't quite gotten my criteria fine tuned and if I thought I saw something that I didn't like, for whatever reason wanted to know if it was a straight take-it-or-leave-it or if it was ok to have a conversation and talk about it and adjust accordingly.
As a wholesaler I get all kinds of properties that don't always make sense for some buyers but does for others. I can't tell which property is best for whom, so I have to send the info out to everybody and let them select the deals that they like.