Those Looking for Wholesalers!

Wholesaling
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Those Looking for Wholesalers!

Will Flores
Union City, NJ · Member since 2016 · 79 posts · 13 votes

Hello everyone,

The reason I am starting this discussion is because I am curious to see what everyone thinks and how they feel about wholesalers. This is more directed to those who use wholesalers and need them in order to keep their business moving.

As someone who uses a wholesaler or have used wholesalers, what is it that you would like to get from them? What is important for your wholesaler to be an efficient asset to your team? What skills should he or she have? What is it that you dont like that wholesalers have done to you? What is it about their current system that you dont like and would like it to be somewhat different. How do you feel a wholesaler should work so it can be more efficient for you? How do you think they should serve? What else do you think they should do? Anything that comes to your mind, I am interested in know what your opinions are.

All are opinions, so there will be no judgement on how you feel. Please feel free to express yourself. If you dont want to do so in public, I would definitely appreciate a private message.

Thank you all !

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Alejandro Flores
Investor · Pasadena, TX · Member since 2016 · 105 posts · 25 votes
9y

Well, the wholesaler should do a good job getting a property under contract at a very good discount that is one big important step. Also good to provide you the properties that fit your criteria. Most wholesalers are buying high and selling high which no one would win. They have to know that you need to win enough profit to even consider taking on the project. Wholesalers have to have pretty good skills in a lot of things, talking to sellers, negotiation, speed, being efficient, good listener, and be very helpful and thoughtful of the seller since they might be going through a hard time. 

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  • Alejandro Flores
    Investor · Pasadena, TX · Member since 2016 · 105 posts · 25 votes
    9y

    Well, the wholesaler should do a good job getting a property under contract at a very good discount that is one big important step. Also good to provide you the properties that fit your criteria. Most wholesalers are buying high and selling high which no one would win. They have to know that you need to win enough profit to even consider taking on the project. Wholesalers have to have pretty good skills in a lot of things, talking to sellers, negotiation, speed, being efficient, good listener, and be very helpful and thoughtful of the seller since they might be going through a hard time. 

    1Reply
  • John Thedford
    Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
    9y

    BEFORE you deal with any unlicensed broker consider these ideas:

    1. Always require WRITTEN comps that can be substantiated

    2. Always require WRITTEN bids from LICENSED contractors

    3, Always require WRITTEN comps to substantiate ARV

    4. NEVER pay a non-refundable fee

    5. Always correspond via email so there is written record to bring suit in the event of misrepresentation.

    6. Always demand to see a copy of their contract.

    Remember, these are middlemen trying to play RE agent without a license. Make sure they provide GOOD comps. Make sure if they are representing an ARV value make them provide ARV comps. If they make claims about rehab costs, make them provide WRITTEN bids from contractors. They are brokering real estate so make them PROVIDE good quality information like you could get from a licensed broker. Many of these unlicensed brokers simply make up figures that sound good but cannot back them up.

    Unlicensed brokers generally have no insurance. From personal experience most just pull their ARV out of thin air. Lets see: claim it costs x and it will sell for y. If someone uses an agent, an agent won't provide or should NOT provide the BS an unlicensed broker does. They should not or do not provide rehab figures (to protect themselves). They should tell a prospective buyer to get their own bids. They can provide comps in some situations on an updated unit vs an original unit. Agents have something to lose, can be fined, and have their license suspended or revoked. Unlicensed brokers, acting as fringe operators skirting the laws have nothing to lose. They are acting as an agent without the laws, ethics requirements, education, and insurance that are vital IMO.

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  • Brian Bandas
    Developer · Nashville, TN · Member since 2013 · 81 posts · 68 votes
    9y

    I have known wholesalers who do an excellent job, and others who give the whole group a bad name--this is probably true of every profession under the sun. To me, the one thing that can separate a good wholesaler from a bad, in practical terms, is a good grasp of comps and a non-inflated ARV. That seems to be the most consistent issue that I run into. The ARVs just don't tend to be realistic. They are always inflated to make the deal seem stronger. That last 4 or 5 I've seen have all been that way, except for one. Shockingly, I'm closing on that one next week. I want to see a good ARV. It gives me confidence in the deal. If the ARV is off, I wonder A) does this wholesaler not know what he/she is talking about? That's scary to me. Or B) does this wholesaler just want to manipulate the numbers and hope I won't know any better? That's also scary to me.

    A realistic ARV tells me they know what they're doing and they're a straight shooter intent on bringing value. That's someone I want to work with over and over again.

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