Wholesaling Homes: Opinion

[John J Garza]

So I saw someone asking a question about wholesaling and another person shot them down and said if they’re not a broker they’re basically the lowest of lows in real estate investing. It was also said that if a wholesaler brought a deal to that “buyer” they’d cut out the middle man (wholesaler) and go straight to seller with all the information and just buy it straight from the source.

My question is, why? Why was/is it that big of a deal? This was something I was interested in and I’ve always been interested in wholesaling but that kind of changed my look on it and was sort of discouraging to read as a new investor.

[Barry Pekin]

There are definitely people out there who don't like wholesalers. Honestly, that's on them. Wholesalers provide a very legitimate service. Buyers often don't have the bandwidth to do proper marketing. So we do it for them. If you meet someone who doesn't like wholesalers, you have two options. Convince them you're legitimate and valuable (and then live up to it), or move on. I was at a REIA meeting a few weeks ago. The rehabbers there were begging the wholesalers to bring them deals. If it worked for the rehabber, they didn't care what the wholesaler was making.

That said, some "wholesalers" out there are not professionals.  They bring bad deals to the buyers, they try to screw over the seller, and they don't know what they're doing.  Remember, we're also doing the seller a service, but if we are trying to screw them over, we're doing them a disservice, and then we earn the "lowest of the low" badge.  I get the feeling there are too many bad wholesalers out there.  You need to rise above and prove your worth to both sides.

As for going around you, if you're doing it right, they can't.  You already have the property under contract.