Wholesaling-how exactly does it work?

[Meryl McElwain]

I recently heard a remarkable story of a wholesaler claiming they picked up a house for 32,000 and then turned around and flipped it to a contractor for 54,000 within a span of 10 days. The story is true; which leads me to my question-how exactly do you get someone to sell you their house for half of what its apparently worth? I've heard all the marketing strategies. I'm not looking for marketing advice. I want to know who the audience is. What type of person agrees to a deal like this? And why?!

[Lydia R.]

@John Thedford You seem to talk so much about these “uneducated sellers” and how wholesalers are taking advantage of them, stealing their equity ect. I just want to point out a few things, because you seem to make a habit of posting in wholesaling forums...if you disagree with it or dont like it then why are you here in THIS forum? I am not a Trump supporter so you know what I dont do? Post my opinions in Pro-Trump forums/chats/facebook groups etc!

Secondly 99% of the sellers out there obviously know what the MLS is because Im pretty sure thats how they bought the home that they are selling in the first place! And they also probably used an agent to buy it! So the argument that these people are ignorant and uneducated doesnt hold up! They are making a conscious decision to not work with an agent. Perhaps they dont want to pay someone(and in some cases 2 someones) a percentage of their proceeds to sell a house that only an investor would buy anyway.

Yes I am aware that there are some bad apples that do some shady things and those individuals should be singled out and face consequences for their actions, but what you should NOT do is vilify an entire group because of the actions of a few. And because I am here to be part of the solution and not the problem I am here giving advice to newbies on how to do things properly and ethically!

I left the corporate world because I was tired of someone else telling me there was a ceiling on my income. Just because you chose to be bound by a 3% commission doesn’t mean that is the right decision for everyone. That doesn’t give you the right to come here and discourage people who are just starting out. Please go spew your venom elsewhere!