is it me or is everybody wholesaling

[Lisandro Garcia]

it seems like the competition is getting bigger and bigger in wholesaling .. i'm a newbie myself but in the few months i have been getting my feet wet i have seen so many new bandit signs so many ..... everywhere i turn somebody is buying houses cash ... how do u stay different with so much competition . what set you and your company apart from everybody else.. i was thinking bout putting up a sign saying i buy houses with cookies lol just joking!!!!!!

[Ryan Webber]

Originally posted by Jimmy C.:

Originally posted by Scott Ricenbaw:

Yes everyones attempting to be a wholesaler, I think the way to differate yourself from the rest would be to actually have the ability to purchase the houses, and then wholesale them. I'd guess 75% of so called wholesalers don't have the ability to actually close on the deals they find if they needed to.. Wholesalers that can fund deals in days always win..

That would technically not be wholesaling. But I know what you mean.

This is something that would mostly change your confidence level. If you are selling the properties right away, this strategy would cost you a little more in closing costs, but it would open up the REO market to ya.

I would argue, and have argued on this forum for many years, that Scott's idea technically IS wholesaling. Wholesaling is an exit strategy in which you are reselling houses to NON-end users (i.e. to other investors). If you are selling a house to an investor who is going to then resell or rent it out, then you are "wholesaling", whether you have closed on it yourself or not.

Now the two most popular transaction strategies utilized in wholesaling are assignments and double closings, but the "technical" definition encompasses transactions outside of just those two strategies. Wholesaling means that the buyer is not the end user. Wholesalers in the retail industry sell products to stores that then resell to the "public" end users.

I would actually argue that assigning a property to someone who is going to live in the property is NOT technically wholesaling. You are selling to the "public" at that point. You are a retailer, not a wholesaler, even though you are assigning the property.

As for wholesalers being everywhere, its been like that for years. This is actually a discussion we've been having on here for years too.

Its like when your wife is pregnant. All of a sudden it seems like everyone is pregnant. You start looking for it more and seeing it more. Are there cycles of massive percentages of people getting pregnant that perfectly coincide with your pregnancy? Probably not. You just don't notice it as much when it doesn't apply to you.

I remember when I first got in to the business, my business partner came to me and was sincerely concerned. It seemed to him that all of sudden everywhere he looked For Sale signs were going up on houses. He was sincerely concerned that the market was shifting and we weren't going to be able to sell our house because of a massive influx of supply. The house sold, and over the last 7 years I've bought and sold 300 more houses.

Be careful. Your perception has a sneaky way of getting in the way of reality.