The Wonderful World of Wholesalers

[Will Barnard]

Ah yes, another beautiful day of the "wholesaler".

I just recently contracted a new deal, direct from the bank (never touched the MLS) and the previous homeowners are still occupying the property (this would be a transaction very similar to buying at trustee sale, but with contract time, title insurance, etc.)

I have 5 deals ongoing and just over $2M out into these 5 transactions, as such, my cash and that of my current private investor network is used (with exception of a few small $25k and $50k investors which can not be pooled to complete this deal). As such, I intend to wholesale it unless I can come up with approx $250k in additional private funds from one investor (I won't use hard money so please dont suggest it).

So, as the story goes, I send this deal to someone who had just recently called me wanting deals. As it turns out, somehow, my deal got into the hands of another so called "wholesaler" and my standard $10k wholesale fee which would be tacked onto the contract purchase price of $235k not only had $5k extra tacked on from my guy, but his contact then tacked on an additional $8k for a grand total purchase price to some investor for $258k. I spoke with the investor and that number obviously does not work (I would not pay that, neither should anyone else) so I went back to my guy and said, "to be fair, this deal can only work if you two "middlemen" split the $5k you takced on and forget the additional and ridiculous $8k. He was fine with getting a fre $2500 for just making a phone call (no representation, no risk, no nothing) but apparently the other "wholesaler" wants her $8k so is trying to shop it to more investors. I have made it very clear that this person should be contacted and told that I will NOT sell to anyone with her fee tacked on and thus, she will get $0 from my transaction, or she can get a free $2500, her choice.

What do you think her answer is?

- Will Barnard