Why do wholesalers get a bad rap?

[Jason Howell]

I get a number of updates from various wholesalers in a few different markets. Often I'm looking at the listings and thinking "man, this sounds like a great situation for a person with defined knowledge of taking that and turning it into a diamond." The numbers seem great, the wholesalers list out renovations needed, the projected ARV after all things are considered. It looks like in many ways they start things off right for the right investor.

So why then do I always seem to hear people refer to wholesalers as a last resort? I realize there is more upside if you source your own properties through your own means, but looking at wholesaler listings, there's still plenty of upside there too. So why the bad rap?

[Matt K.]

The numbers typically are BS, they're similar to the stereotype of a used car dealer...