4 Questions for a Wholesaler! I Need to Know! before...

[Marc Frage]

Hey,  I am doing a little bit of research on what it is like to be a wholesaler! To see what the industry is like as a wholesaler....so far I've gotten a few feedback from a few wholesalers Need more! to make my decision. 

• What keeps YOU as a wholesaler awake at night, eyes open, staring at the ceiling? 
• What are your top 3 daily frustrations as a wholesaler?
• What do YOU secretly, ardently desire the most as a wholesaler? 
• Where are you at now on your wholesaling journey and where do you want to be in the next year? 

Ohhh the wholesalers mentioned...
They mentioned other wholesalers not knowing their numbers! and the lack of seller leads! and not having a buyers list..... So far thats the top three... is there anything else...?

[Will Barnard]

Originally posted by @Marc Frage:

@Will Barnard Thanks for the response, 

Can you elaborate more on the statement "How about the legal hurdles." What do you mean by that? 

Certainly. The legal hurdles are due to the fact that just about every state has laws now that state that you must be the owner of record (on title) to publicly market a property for sale or be a licensed agent or broker with the department of real estate. Many wholesalers lock up a contract with an assignment clause, market the property for a buyer at a higher price, then assign the contract. That constitutes brokering without a license and in many states, can be punishable by fines or even jail.

There are legal ways to wholesale and illegal ways to wholesale, many new wholesalers do it illegally and as such, the “legal hurdle” I referenced.

Wholesalers will also tell you that they provide a valuable service, however, the argument to that is in order for them to have enough spread for both their end buyer and their wholesale fee, they must convince a seller to sell well below market value. Granted some sellers are in desperate need for a quick sale or prefer to take less for their home without the hassles or time of listing on the MLS, but the truth is, in most cases (not all), they are stealing equity from the seller who is likely unsophisticated regarding real estate and have not been given all the info they should have. In fact, many wholesalers are not telling the seller what exactly they are doing and how much money they will be making by simply being a middle man (and unlicensed at that).

These are the legal hurdles any wholesaler should be concerning themselves with. As a licensed agent, the agent who wants to wholesale can make an all cash offer to the seller and also tell them what they feel they could list and sell their property for. With both these numbers in hand, the seller is now armed with proper info to make a good decision that fits their needs at that time. This info is rarely given out by an unlicensed wholesaler.