Wholesaling integrity does it matter?

[Louis Ford]

While this is something i am interested in i wanted to know how do you tactfully wholesale and is it best to tell the seller your intentions from the beginning. seems like its kind of misleading at times. Have you guys ever ran into any problems as in a seller backs out when they see youre not the actual buyer or the seller feeling you were disingenuous?

[Account Closed]

Originally posted by @Louis Ford:

Originally posted by @Jerryll Noorden:

Originally posted by @Louis Ford:

Originally posted by @John Thedford:

Originally posted by @Louis Ford:

Originally posted by @Amy Aziz:

@Louis Ford It's how I go through life, direct, honest and simple. lol, no fluffy here. Thankfully, 10 plus yrs in customer service helped me in eliminating BS and built tough skin. 

Transparency is so much less stressful and  Yes indeed i hear you on that tough skin...its a vital attribute to have...ppl can get nasty i try to prepare myself for that as it seems some ppl dont respect the wholesales approach for various reasons 

Do people that skirt and break brokerage laws deserve respect? NO! The same goes for dishonest agents that do the wrong thing. NO. 

 Youre very passionate on this matter...but wholesalers arent the only one ripping ppl off im sure you can agree with that...i understand your views but if youre upfront about what it is you do and the seller is fine with it i dont see the problem respectfully...however if you exercise deception license or not thats where the wrong is done 

 Lol i was wondering why the hate?

There's hate because it can be really skeezy. It attracts people who hustle hard, but sometimes at the expense of honesty. When you start to accumulate property, you start getting contacted by these guys. As buyers, they use fake names on their mailings, they claim they are "cash buyers" (but you know they aren't), they really don't care what claims are made on the postcards as long as you call.. Then as sellers (re-assigners?) they hide the exact address (because they know they can be cut out easily), they mis-estimate the rehab costs or ARV, and a lot of times their deals aren't even their own (daisy chained) or are just flat out no good.

And honestly, put yourself in the original seller's shoes.  You just want this problem property off your hands, and this guy is here telling you he's a cash buyer and ready to roll.  Sounds good, right? But if he was honest about it and told you he's going to tie up your property with a one-sided contract while he tries to find a real buyer, and bail if he can't, would you want to sign with that guy? That is part of why the average wholesaler just isn't competitive and almost has to lie to make it work. 

Plus, it honestly is illegal in most states unless the wholesaler takes title.  It actually is brokering without a license, so right off the bat you have a big ethical issue with the business model. 

Personally, what I dislike about it is the SMS spam and constant calls from pushy (but polite) virtual assistants.   I accept it as part of the business, but the online databases they use are all messed up so they harass my parents and brother, because somehow our phone numbers and addresses got all mixed up.  And there's no way to stop it, since everyone's hiding who they really are and how they got the information in the first place. 

Some here are trying to write it all off as irrational "hate", but they might also be selling services to wholesalers, or are one themselves, so they have a vested interest in convincing you its a valid business model.

Also a lot of these "haters" have been in the game a long time, longer than the shovel-sellers and other wholesalers, so there's probably actual valid reasons for their opinions.. Keep that in mind as you figure your place out in this game, you don't want to be a wholesaler forever, right?  What do you want your reputation to be? 

Disclaimer though: I am not an agent, nor a wholesaler. I have bought deals direct from homeowners where the wholesaler completely wasted their time and lied to them.  I would never cut a wholesaler out if they brought me a deal, but I am very suspicious of any wholesaler and their deal when I do encounter them.