How to deal with wholesalers

[Michael Lauther]

[b]I have made an offer on a property through a wholesaler. Is there any reason that we can't just close through the title company with the current owner and have the wholesaler paid from the owners proceeds. I would feel more comfortable if the contract for sale were with the owner and not the wholesaler who does not own the property at this time. Wholesaler says he has Equitable title but I have no evidence of this. I have no trouble with the fee which looks to be around $5000 on a property that will sell for $23000 because I believe the property is worth what I am paying. Also asking for $5,000 earnest money. this seems excessive. I have never paid more than $1,000.

I would appreciate any thoughts on this issue.

[Dan Koch]

If I am understanding this correctly there is a 2nd wholesaler trying to make money off of a property that another wholesaler has tied up???

If this is the case you need to be working directly with the guy who has the property under contract.

This is why I never let other wholesalers shop my deals. They can bring me a buyer only "if we prearrange a fee" for them.

I understand what this guy is trying to do.....it is not uncommon for newbie wholesalers to get into real estate and start trying to shop other peoples deals even if they don't have permission.

Bottom line, get in touch with the first wholesaler. The second guy should have an arrangement with him and be getting paid through him, not by you.

Oh, and don't give him any earnest money. I'm sure you know this, but only give your escrow money to the title company, not some guy trying to shop another wholesalers deal.