What would you ask a wholesaler?

What would you ask a wholesaler?

Katy, TX · Member since 2017 · 149 posts · 72 votes

So I was at a recent REI event and I ended up winning a free 1hr mentor session this upcoming Friday with the co-founder and managing partner of a large wholesaler. Being the newbie I am, I would like to reach out to the BP community for a list of questions you would ask if you were in my shoes. Maybe some questions that you wish you had asked a wholesaler you worked with in the past? Maybe you wish you had more clarity on a certain step in their business model before you worked with them? Maybe there are a list of questions that are an absolute must for you to trust them?

I have listened to a plethora of the BP Podcasts (this wholesaler was a guest on two of them) and a lot of successful BRRRR investors work with wholesalers however they also say that 9 out of 10 aren't worth your time and the key is to finding a TRULY reliable wholesaler.

I literately plan to collect these questions from everyone on here and put them together and bring them with me. Following this 1hr spent with them I will get back on here and answer the questions that everyone asked. I think its a great way for me to learn and to ask tough questions that I likely wont think of on my own. 

So if you would be so kind as to giving me 5 or so questions you feel are absolutely a must for you to trust any wholesaler you would ever do work with it would be GREATLY appreciated!!

Thanks!!!

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Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
8y

Are you licensed or unlicensed?
Do you provide appraisals to back up your claimed ARV?
Do you have written bids from contractors when you state "x" rehab costs?
Can you provide me with at least five references for deals you have done?
Do you required a non-refundable EM deposit even though that is not standard in the RE industry?

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  • Flipper/Rehabber · Montgomery, NY · Member since 2016 · 2k+ posts · 1k+ votes
    8y
    Originally posted by @Paul Amegatcher:

    I'm always amazed at the standards set for wholesalers in this forum. People guaranteeing ARVs really? You might as well guarantee repair costs whiles you are at it. Next you may want to guarantee the DOM before selling. 

    If you are an investor and you don't do your own due diligence when dealing with anyone in real estate you deserve to lose your money. I always do my own due diligence. I run my own comps and also assess the repairs needed. A wholesaler is just bringing a lead for me to vet. The quicker people learn that nobody is going to do the work for you the better of you will be. End rant.

    It was the wholesaler who was making guarantees, unless I read something wrong... I would never expect anyone in this business to ever make a guarantee regarding ARV, rehab costs, etc. I would also never trust anyone else's numbers and run my own, as I think every REI would also do. The issue people have with wholesalers seems to be that they offer up ARVs and rehab cost when they send you their leads. These numbers tend to be off and when they tell you the deal has a $50k profit, it usually has very little to no profit (they miss key rehab work, holding costs, closing costs, etc... at least the ones I see).

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