How do investors feel about wholesalers ?

Question

Ned Carey · Answer

Yes investors consider wholesale deals if they are good deals. The key is "Good Deals".  As @Jay Hinrichs says there are a ton of wholesalers in the Baltimore area. Most push deals so bad i wonder if they have ever done a deal. Serious buyers will gladly buy from a wholesaler, but they are more likely to laugh at how bad the deals are.

Regarding what investors look for, there are lots of ideas here on how to evaluate deals. Check out the free beginners guide here if you haven't found it yet. (under the education tab) Then check out the 70% rule.

Louis La Rossa III · Answer

I have not used a wholesaler yet, but I plan to.  From my understanding, just like anything there are good ones and there are bad ones.  Wholesalers who are honest, give fair ARVs and repair costs can be successful.  Its all about the network and keeping a good reputation.  One shady deal can hurt.  I'd say that a high percentage of investors use a wholesaler for some percentage of their deals.  As far as a good deal, that varies from investor to investor, generally as long as it fits there numbers and they can cash flow (if renting) or make money in a flip, it will be a good deal for them.

James Green · Answer

@James Wise please tell us how you really feel. I'm glad none of the investors I've closed deals with feel that way,. Especially the many that are repeats. Else I would "feel bad" and quit after reading your post!!

I need an image for an eye roll here.

Account Closed why worry or be concerned about what others feel about the industry of "wholesaling or assigning".

Here's a tip

1) Get educated

2) Be professional

3) Be real, don't say you are going to "buy" someone's house, because you are not.

4) No need to become a realtor if you don't desire OR get one if it would help you get educated.

5) Wholesaling real estate in the DMV is not illegal. No need to worry about getting locked up, as in other states

6) Create your own deals, don't tack on a fee to another deal & try to shop it around

7) If you do #s 1-6, you won't be wasting anyone's time

James A. · Answer

Account Closed, wholesaler are a dime a dozen but i do believe they do serve a purpose.  If you are putting  your customer first, investor, I think you will have more business than you can handle.  Seems like alot of wholesalers are just throwing things out to the market seeing what sucker might take it and bc the market is so tight things are getting bought up that are not good deals.  I just encourage newer investors to always due extra due diligence and bounce the deal off multi other people when dealing with wholesalers!  Good luck, I hope you will be one of the good ones.

Peter Ledger · Answer

I agree with @Bjorn Ahlblad. A good deal is a good deal, it doesn't matter where it comes from. Wholesaling is an easy point of entry into RE, so it's only natural that a lot of wholesalers are new and unexperienced. BUT, there are some great ones.

I definitely don't agree with Jame's purely negative views on them. In my experience they are a lot like realtors. 80% of them don't know what they're doing. 5% are really good at what they do.

Ozzy Sirimsi · Answer

A good deal is a good deal.

Doesn't matter who brings it whether MLS, or whoelsaler or your friend etc...

If you find one, any investor will take it even if they hate wholesalers :))

Jay Hinrichs · Answer

Highly regional.. and your region is loaded with wholesalers..

Alex Franks · Answer

Most Folks start out wholesaling in this business( not every one ). So it is natural for folks to need or deal with wholesalers. I would focus on meeting local folks who are buying and selling. Learning and understanding the numbers is most important.  My first few were years were wholesaling deals locally. Even today I love a quick whole sale deal. Please ask away

Alex

Josh Caldwell · Answer

Wholesalers can be a fantastic source of good deals.  They can also be a waste of time.  Not all wholesalers are created equal.  The good ones, leave some meat on the bone.  They also know how to evaluate the deal on the front end, so that I am not wasting my time looking at a house that is supposed to have a 150k ARV in a neighborhood where no house has ever sold above 100k.

Isaac Barrow · Answer

From the investors I've met in town, it's a fairly mixed bag. Just like agents or property managers, there are good ones who are a delight to work with, and bad ones who misrepresent what they're selling and aren't reliable.

How do investors feel about wholesalers ?

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