I sure wish I could sell my house to a wholesaler!

Tyco Bronye · 2013-08-04T08:38:36-07:00

Sorry if this offends anyone. Also thanks for everyone who has responded to my other questions. This message board is awesome! True learning takes place here at BP forums with real people in real situations. It seems to me a wholesaler is a middle man who yes serves a purpose to an investor but at the expense of screwing over the seller. It seems like a lose-win-win scenario. I have looked into this and I have heard analogies to a store like Target or Walmart. That in essence they are middle men, since they buy their products for one price then raise the price when they sell it to you the consumer. However, this analogy doesn't seem to work in my opinion because those stores offer a convenience to the consumer that they are willing to pay for. You pay more at the small hardware shop located a block from you than you would at the Home Depot 12 miles from you, but I will still occasionally shop and pay a higher price at the ma and pa store if I want the convenience. But a wholesaler doesn't offer a convenience. I guess I don't understand why and how real estate wholesaling exists in the market. Basically I'm saying: Sellers and buyers should be able to come together without this middle man. If I want to sell my house fast and it's in bad condition why can't I just put an add out on craigslist saying : "House for Sale - Priced at 70 percent ARV minus repairs" Then just hook up directly with the cash buyer, instead of adding this extra person who takes another 20 percent. Why hasn't 70 percent ARV minus repairs made it to the popular lexicon even for people outside of the real estate business in this age of information? My parents are not real estate investors but they just bought a second house for retirement and they are familiar with concepts like "comps" "points" Shouldn't the market have eliminated this unnecessary person called a wholesaler/middleman? I realize there is an advantage of all cash purchase because of the speed you can get your money guaranteed and also if the house is not in good condition you can't sell it on the market. But shouldn't their be a legitimate business out there that where a "motivated seller" can just hook up directly with the buyer and cut out this unnecessary person who is just taking thousands of dollars for doing nothing? (Doing nothing from the seller point of view, I realize wholesalers put in a lot of work to find their prey) This seller has to be taken advantage of is all I can conclude at this point. I've looked this question up on Google: Is Wholesaling ethical?" There was an article that broke this question down into two categories. 1. A deal is a deal. You approach the situation fully trying to deceive the seller. 2. Inform the seller of their options. The author of the article decided to take the second approach and would lose some deals because of it. I can't understand if you really are informed as a seller why would you sell to a wholesaler?

David C.

Real Estate Professional · Mechanicsburg, PA · Member since 2012 · 319 posts · 167 votes

13y

It is work to filter through the clowns and people without money who will reply to your craigslist ad. A wholesaler should have a list of 'buyers' who they can call, and quickly move the property to.

I believe you can put out that ad and serve as your own wholesaler. I suspect you'll spend between 10 and 100 hours dealing with the responses, doing showings, etc... You will likely get more for the house.

I did not understand wholesaling either until my in-laws were motivated sellers, rather than wholesaling, the did an auction. They did not get a great price for the house and the auctioneer got his cut.

0 Reply

John Rooster

Denver, CO · Member since 2013 · 409 posts · 105 votes

13y

While I agree with you in large part. I will argue that there is a place for wholesalers in theory. In theory it takes a lot of time for investors to screen potential deals, and it is worth paying a wholesaler something to find, vet, screen and negotiate potential deals, so that the investor can better utilize his/her time on remodeling, selling, managing and financing properties. But the reality is different. An investor needs to vet and screen the potential deals from the wholesaler, and this usually is just as time consuming as finding and screening deals from Sellers since most wholesalers are just failed or green wantabe investors that have an inflated valuation of their service. This is where the Walmart/Target analogy breaks down. And btw, your 20% wholesaler commission is a long way from reality. And yes, in normal markets, the really good deals that wholesalers do manage to score are usually from unsophisticated and infirm sellers.

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David G.

El Paso, TX · Member since 2013 · 5 posts · 0 votes

13y

Hey BP!

I'm new to Bp as well as new to real estate investing.
I'm posting since wholesaling caught my eye in a way to begin in rei.

From what I understand its a service we provide to sellers by saving them time, headaches, and to an extent money.

Your right of course they could just do a craigslist ad and even a few classifieds but how many of those will be a waste of time , cancelled appointments, having to missed work to meet a potential buyer who may not even make an offer.

The way I see it is I'm saving the seller the headache and time and working for him with of course a fee for my services (commission).

David

0 Reply

Patrick G.

Abingdon, MD · Member since 2013 · 193 posts · 60 votes

13y

Ummm... What?

So if there is a 'business' that hooks you up with a cash buyer, then it is ethical, but if it is a 'wholesaler' than it is unethical?

Everyone should know that wholesalers give you a low price for a fast closing. I'm sure some of them are unethical. However there is a time and a place for people who need fast money.

Also consider things from the cash buyers end. If you had $50k to invest in a property, would you want to sort through hundreds if not thousands of craigslist spam postings and go see dozens of completely overpriced run down houses? A good wholesaler offers them a legitimate deal. If the wholesaler is giving honest comps and knowledgeable repair estimates. Some buyers may enjoy the shopping experience and want to squeeze every bit of value for their dollar out of their house. But I suspect most do not.

4 Reply

Christopher Arias

Real Estate Investor · Los Angeles, CA · Member since 2010 · 7 posts · 3 votes

13y

It all begins with the seller's issue. There are seemingly infinite reasons why distressed sellers want to rid themselves of property. One example that comes to mind is probate. When a family member passes away, there is a house left behind to deal with.

Well, let's say the children of the deceased are already grown up with kids of their own and live out-of-state. Now they've got this property to deal with, it's all beat up, it's been vandalized in its vacancy, they don't have time, money, energy, knowledge, skills, ability, whatever to deal with this house. This property is definitely not fit for the retail market.

To the layman who doesn't deal with too many real estate transactions in their lifetime a wholesaler is a convenience. Remember your ma and pa shop analogy? You're willing to pay more to ma and pa because they offer convenience. The convenience you provide as a wholesaler is ridding someone of their problem property really fast.

Even the informed people are willing to take a lower price if their situation warrants it. They are willing to pay for this convenience because it's a stressful, emotional, whatever situation they don't want to deal with anymore. Wholesalers know people who have the means to put cash in the seller's hand and rid them of a problem property.

Why didn't they just list list it FSBO (For Sale By Owner)? Why didn't the seller just contact someone to buy the property themselves? If they are informed, they will. They'll still receive 70% - Repairs offers because their situation must warrant such an offer.

Personally, I want to buy all these properties for cash myself just like anyone else. If I can't close every deal myself I'm willing to pass it off to my buyer for a fee. Buyers understand the property is a great deal and are willing to pay for the convenience of not having to find the deal themselves.

In conclusion, the convenience a wholesaler provides to a seller in a tight spot is of tremendous value. We know people who are ready to buy the property fast if that person is not ourselves. Sellers pay for this convenience all the time for an infinitely wide variety of reasons. The situation has to warrant the offer. Making a low ball offer for the sake of making a low ball offer won't fly. Every wholesaler should explain to the seller why they offered the price they did and back it up with data.

1 Reply

Rob Powell

Real Estate Investor · Oklahoma City, OK · Member since 2012 · 81 posts · 20 votes

13y

The wholesaler is offering a "convenience" to the rehabber or buy and hold investor who has neither the time nor the desire to field a couple 100 calls a week. Their time is better spent focusing on their specific niche.
Simply put they don't have time to look at 3-5 houses a day on top of their considerable other duties.

If they are only working on 1-2 house a month they may have time to do the significant marketing that wholesaling takes, nut as their business grows they have less time to do the task that good wholesalers specialize in.

In closing i will say that doing business with a wholesaler is not for all investors , but they are a god send to busy investors.

1 Reply

Jon Holdman

Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes

13y

You might want to read through The Truth About Wholesaling for other folks' thoughts.

I think you are correct that for something to be a deal a wholesaler can make a share from, the seller has to leave lot of money on the table. There are, however, sellers who are willing to do just that, though.

The 70% of ARV - repairs has nothing to do with wholesaling, though. That number is the reality of fix and flipping, regardless of where the rehabber finds the property. That's the number you need to hit to make a profit, if 1) you're using a hard money lender to fund the deal, 2) your numbers are accurate, and 3) you can sell within about six months. If all those are true, a rehabber can make about 13% of ARV for a profit. Number 2 is the tough part of this. Its really easy to underestimate rehab costs and overestimate the selling price. So, its really easy for that 13% to turn into 6% and then into nothing. Or a loss. So if you're really pushing back on these numbers as being fair to any seller who sells to a rehabber, well, that's what it takes. If a rehabber can't hit these numbers, there's no point in being in the business.

Now, there's another dynamic at work. Many retail buyers, that is, someone who's going to move in, what a house that's move in ready. Defects in a house tend to knock more off the price than the cost to fix the defects. Further, many retail buyers, especially at the lower end, tend to end up house poor after the purchase and have little money for renovations. Paint and carpet, perhaps. For many, even putting up mini-blinds and curtains is a stretch. Serious rehab greatly reduces the number of potential buyers and reduces the price much more than the cost of the rehab. So, a house that needs serious rehab, and many do, will be greatly discounted vs. retail. These are the ones where wholesalers and rehabbers can make money.

I do not for a minute believe most wholesale deals involve 20% to the wholesaler. Those deals do happen, and certainly the gurus who pitch wholesaling as quick and easy money love to talk about them. But they are the outlier, not the common situation. Most deals have the wholesaler making a few percent.

In other words, about the same sort of cuts that go to real estate commissions on most deals. When you ask:

You're really asking "why is the real estate market so inefficient?" Other markets have evolved to eliminate the middlemen. "Disintermediation" is the business term for this. Think of travel. If you've used a middle man recently, it was probably Expedia or Travelocity and not a human travel agent. Where middlemen still exist, their commissions have been reduced. Think about stocks. Commissions and loads on mutual funds used to be similar to real estate. Now they're nearly nothing.

So, why not real estate? My take is that its a much different market. Plane tickets and stocks are fungible. They're the same regardless of where you buy them or which specific one you buy. Not so with houses. Everyone is unique. The transactions are very large. Many buyers want something they can't have at the price they can afford. Many sellers have unrealistic views on the value of their one and only one item they're selling. Matching buyers and sellers is a complex process. The transactions are complex and most buyers and sellers do only a few of those transactions in their entire life. My dad did only one real estate transaction in his entire life and that was to sell a partial interest in his grandma's house to his niece. And so we continue to have intermediaries. And they continue to demand and get high commissions.

Wholesalers are, IMHO, just another form of real estate agent. They deal, usually, with a slightly different group of buyers and sellers and work in a space where most retail agents are uncomfortable. Retail agents focus on "finding a home you love". "Home" and "love" are emotional words. They belie the emotion involved in buying a house, for most people. How many people have you heard say "that's my dream house?" For investors, houses are just numbers. And, frankly, they are for everyone involved in the real estate business. Real estate, like most business, plays on people's emotions to convince them to buy something.

If you read "The E-Myth", the author argues almost all buying decisions are, in fact, emotional and subconscious. He argues that if you want your business to succeed, you better understand that and work it to your advantage. The real estate business thoroughly understands that and plays it to the hilt.

4 Reply

Anson YoungBusiness Member

Flipper/Rehabber · Denver, CO · Member since 2009 · 1k+ posts · 726 votes

13y

I'm not touching this one, and I don't have much more to add than Jon already did.

Podcast Guest on Show #235

0 Reply

Sharon Tzib

Real Estate Broker · Cypress, TX · Member since 2013 · 822 posts · 468 votes

13y

<quote>If I want to sell my house fast and it's in bad condition why can't I just put an add out on craigslist saying </quote>

Sure they could. In fact, a large amount of sellers who respond to wholesaler advertising either have their home on the market currently or their listing has recently expired. Or they're FSBOing and can't find a buyer.

The fact is, that a large % of wholesale deals are for distressed homes that the average buyer cannot get a loan for. And average buyers don't want to deal with huge amounts of repairs anyways.

Real estate is something that intimidates the large majority of people. So if someone can come along (the wholesaler) and solve their problem for them, without them having to spend any time on the issue, then that is a value to a seller.

Most sellers are dealing with some tremendous emotional, physical, or financial burden (divorce, death, illness or job loss). If a wholesaler can come along and relieve them of that, then I guarantee you they won't feel ripped off.

1 Reply

Tyco Bronye

OP

Minneapolis, MN · Member since 2013 · 25 posts · 2 votes

13y

Thanks to everyone who responded. To be clear to everyone I understand the advantage to the rehabber /buyer by using a wholesaler, that's obviously win-win. I also understand the advantage of the quick sale to the seller and that they would take less money for that advantage. I also understand the seller advantage if it's in bad condition and that they don't have to deal with a renovation to put it on the market.

I realize the equation 70 percent of ARV minus repairs is for the rehabber that's why I'm saying it should be a normal cultural thing for a seller who

1. wants to sell the property fast with all cash

2. Doesn't want to deal with a renovation himself

That seller should go on craigslist and say "House for sale for rehabbers selling for 70 percent ARV minus repairs"

That seller with be better off by not having to lose an extra 4-7k to a wholesaler who does nothing for the seller.

I'm just saying it strikes me as weird that this wholesaling industry even exists because it seems relatively easy to eliminate them. It seems the industry is based on sellers ignorance of just going on craiglist and putting an ad up that will appeal directly to the buyer/rehabber and that is "house for sale 70 percent ARV minus repairs"

To Jon H, yes the basic question was why does this intermediary even exist?

To Patrick who asked me so is it unethical to match a buyer and a seller? I'm not saying it's unethical, it just seems unnecessary in theory.

Maybe I'm revealing too much with this next analogy but here goes. 12 years ago I was living in San Diego. I was working at as an apprentice plumber and my fellow workers told me about this place called Tijuana, Mexico which is not very far away were prostitution was cheap and legal. They told me what to do and then I decided to check this out.

I walked over the boarder and headed down to Revolution and Constitution street and see all the available women just lining the streets there first hand. There were hundreds of women available wanting to sell you their services. I walk down the street with many offers of "****y or sucky" from many different women. I picked one out, paid her 25 bucks and spent 5 bucks on the room. We did our thing, deal was done.

An hour later I decided to do it all again with a different woman. This time while I'm walking down the street I am accosted by a Tijuana local guy with broken English saying he will find me a women. I wasn't interested but he was really annoying and just kept hanging around walking next to me. I'm looking at the women and he is doing the same thing looking at the same women. He picks one out, she was good looking and I asked her if she was interested and she was.

This local Tijuana guy who I just considered a gnat was asking me for money because of how he assisted me, I have him 5 bucks just to shut him up, but the point is he was "completely unnecessary" He was trying to make it seem like he had some role, but in reality he was not needed.

When I reported back to my fellow plumbers about my experience and told them about this local guy and his attempts to get money out of me, they said yea just stay away from them.

The Tijuana guy seems like the role the wholesaler plays.

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Tyco Bronye

OP

Minneapolis, MN · Member since 2013 · 25 posts · 2 votes

13y

Jon H,

Why is matching buyers and sellers a complicated process? It seems like one of the least complicated dynamic in life in general. You get pre approved for a certain limit of money say 200k, then you go out and choose from hundreds if not thousands of houses that are for sale 200k or under.

0 Reply

Jon Holdman

Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes

13y

Why do you think this? Sorry, but this belief makes little sense. Like I wrote, most people do very few real estate transactions in their entire life. Most sellers have no idea what their property is worth. Most people don't understand finances or business at all. Most people who start a small business doesn't understand what they get into and fail very quickly.

So, why would you expect a seller to understand how rehabbing works or the price a rehabber can pay and make a profit? For that matter, why would you think a seller would even care if a rehabber would make a profit? A seller simply wants to sell at the highest possible price.

Real estate agents and wholesalers (largely the same thing, IMHO) exist in this market because houses aren't fungible, transactions are complex, and buyer's and seller's lack the knowledge and ability to find each other and complete their transactions online.

That may change in the future. For that matter, it's already changing. This is exactly what zillow and trulia are trying to do. Just like for the auto industry, buyers are much more knowledgeable than they used to be. Unlike autos, most houses are sold by individuals, not big companies. So, the "lack of knowledge" applies to both sellers and buyers. Zillow, Trulia, and other are trying to provide knowledge to both buyers and sellers and to provide a marketplace for doing transactions directly.

Realize too that like many other industries there are entrenched players that don't want this to happen. And some of those players are very powerful politically. Why do you think there is a tax deduction for mortgage interest? Most countries don't have such a deduction. Nor 30 year fixed rate mortgages. Lobbying by the big players creates these perks, which in turn improves the real estate business. Those same players want to continue to be in the middle of RE transactions.

That said, they also create some stability. When a seller hires a listing agent rather than selling via a wholesaler, the listing agent is working for the seller. The listing agent agrees to get the highest possible price. That is a distinction from a wholesaler, who isn't bound by the same regulations as a licensed agent and is usually working for their own interest.

All that said, I think wholesaling is a much, much smaller niche than the gurus make it out to be. Its easy to describe and sounds easy to do so its easy to sell courses on doing it. I suspect that the actual percentage of transactions that are facilitated by wholesalers is very, very small.

0 Reply

Jon Holdman

Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes

13y

Originally posted by Tyco Bronye:

Jon H,

Why is matching buyers and sellers a complicated process? It seems like one of the least complicated dynamic in life in general. You get pre approved for a certain limit of money say 200k, then you go out and choose from hundreds if not thousands of houses that are for sale 200k or under.

And where do sellers look for those houses? Craigslist? Individual web sites that are set up by sellers? How do sellers verify all the information about the house?

Where do sellers offer their houses for sale? How do they market them? How do they decide on a price?

Most buyers and sellers do these transactions once or twice in their entire lifetime. This process is heavily regulated and bound by many laws. Large amounts of money are on the table. The risk of making a mistake is high and the cost of a mistake can bankrupt a buyer or seller.

Have you ever bought or sold a house?

0 Reply

Tyco Bronye

OP

Minneapolis, MN · Member since 2013 · 25 posts · 2 votes

13y

http://www.youtube.com/watch?v=Cj4CMj8KTKc

This link has a guy talking about the question "Is wholesaling real estate ethical?"

He brings up an example from his own life where he made a 6k wholesaling fee. The seller and the buyer later by chance found out they were selling to each other through this middle man. Once the seller found out about this he said to the wholesaler if I find out where you live I will shoot you with a shotgun.

I ask the question if wholesaling elicits that kind of response from the seller it seems to illustrate the point that it has no role for the seller who's basically feels like he's been robbed of 6k

Also the very fact that in general wholesalers don't want to go to a closing with all three parties there. That in itself shows they know they are screwing over the seller.

0 Reply

Tyco Bronye

OP

Minneapolis, MN · Member since 2013 · 25 posts · 2 votes

13y

Jon H,

We might of had a misunderstanding. I realize the legalities of buying a house. I have purchased one house in my life that I still live in and I hired a buyer's agent when I bought my house.

I didn't mean one should sell a house on craigslist the same way one sells used dvd's on craigslist. I fully realize there are legal documents, title exchanges, escrow etc. all that legal stuff.

If a seller goes the traditional route through the listing agent or if the seller does a for sale by owner they both go a closing at a title company. I'm not arguing against that.

0 Reply

Tyco Bronye

OP

Minneapolis, MN · Member since 2013 · 25 posts · 2 votes

13y

John H, I guess to me I'm saying it's weird that wholesalers have to inform home owner of their options because it seems like there are only 2 options basically for a home owner who wants to sell.

1. FSBO

2. Agent

To Simplify: The way I understand it there are 2 basic ways a seller can sell their house free and clear (I realize there are creative ways like subject to's and rent to own) but I'm just talking free and clear in a short time.

Scenerio: Your mother died, you inherit her house, she lives across the country, the house has not been renovated since the 60's

Option 1.You call up a realtor and the realtor says. Get your house appraised, then this is what it's like going through me. I will try to get you top dollar for your house, but for the house to sell you need to get it renovated, then on top of that it will take on average 6 months to sell (or whatever is truly average for that time and area) minus 6 percent commissions and closing costs

-advantage ... most money, most likely

disadvantage...will take longer , all the headache of dealing with a renovation

Option 2. get house appraised at ARV, minus rehab cost by a professional appraiser. You can sell this house quickly and without messing around with a renovation by selling to an investor who will buy your house legally at 70 ARV minus rehab.

advantage -takes less time, don't have to deal with renovation

disadvantage -will not make as much money as option 1.

I'm just saying it seems that more sellers should be familiar with this concept in general, it seems odd that a wholesaler makes a seller aware of this option since there are basically 2 options total.

0 Reply

Jon Holdman

Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes

13y

Those are hardly your only options. And if I called an agent and they said "get it appraised", I'd scratch them off my list as an incompetent idiot.

If that situation, being a reasonably knowledgeable seller, I would first try to figure out the main listing agents in the area. That's often as simple as looking at current listings. Then I would call up a few and chat. I would get the three that I liked to give me their evaluations. I actually have done this process before, and a good agent will give you and in depth analysis of the market and what they think they can get for your house. I would tell them I wanted a contract on the house, as-is, within 90 days.

I can pretty much guarantee that this will produce the highest possible price for the house. I have been in the position of selling a house that needed work. My partner and I fixed it up and did eventually sell it. In hindsight, we should have sold it as-is, just like banks do when they are in the same position.

The reason the MLS and these process are used is because they work. To sell something it has to get in front of potential buyers. When buyers want to buy something, they look for where it is for sale. The MLS is that place. The MLS, real estate agents, and this system are that market you think should exist.

Yeah, why a seller would not just put something on the MLS is beyond me. I think in many cases its greed on the part of the seller. They see those 6% commissions and want to bypass them. So they try to sell it direct. But there is no way to sell it direct. Most buyers look on the MLS. If your property isn't there, its only getting exposed to the small fraction of buyers who look in other places. Further, the buyer who are looking in those places are the savvy ones. The ones who are going to take advantage of a niave seller who doesn't really understand the process.

The seller in your example is just silly. Had they put it on the MLS, they would have paid commissions. The wholesaler found them a buyer and got their house sold at a price they liked at the time. Now they find out someone else made some money of the deal and are mad? Ridiculous.

That said, I think wholesalers should be honest. I think they should say "I'm going to try to find a buyer for your property, I'm not going to buy it myself." And, yes, I'm sure some wholesalers take advantage of sellers who don't know better. One of the advantages of working with a licensed agent is they are bound by a code of ethics to get the seller the highest possible price. Are there bad apples, sure. But the seller would have some recourse if they found out the agent had deceived them.

1 Reply

Michael Quarles

Flipper/Rehabber · Bakersfield, CA · Member since 2008 · 3k+ posts · 3k+ votes

13y

The only person a wholesaler is screwing over as you put is themselves. Assuming you are applying the definition of an assignor to wholesaling. If so then your Wholesaling is by far the most expensive method of Real estate investing.

The fees paid for an assignment (wholesale) is little different than any marketing dollar spent to create a call to action and subsequent reaction.

And marketing is the truest fundamental requirement of all business. If a seller and buyer majically found one another the seller wouldn't earn more the buyer would pay less.

1 Reply

Patrick G.

Abingdon, MD · Member since 2013 · 193 posts · 60 votes

13y

Well that was a disgustingly creepy analogy. I'm going to go wash up with bleach now.

1 Reply

Jay H.

Tallahassee, FL · Member since 2013 · 108 posts · 55 votes

13y

Within every market place there are the ethical participants and unethical participants. My issue has been with the Wholesales who target underwater mortgage holders. Back in 2009 I began to see a trend whereas Wholeselles would approach borrowers facing foreclosure. These guys would put the borrowers property under an option contract for up to a year. They would then record the contract in order cloud the title, as a way to insure themselves a profit. They would then act as the sellers negoicator, attempting to convince the lender to accept their deflated offer price, all the while marketing the property for a much higher sale price. Once they secured the sale price they wanted they would do a double closing. If they didn't find a buyer to pay the spread they would simply wait out he lender. All the while, the borrower was facing an ever closer foreclosure ruling, in most cases the borrower was unaware. For the borrowers that met someone that enlightened them of the scam, and tried to sell to another party faced a clouded title. Many times having to pay the wholesaler a "break fee" to remove their NOC(notice of contract). I wrote this article way back in 2011 for Board of Realtors magazine regarding this practice. http://www.tbrnet.org/uploads/file/Magazines/Jan2011.pdf

0 Reply

Tim G.

Rental Property Investor · San Diego, CA · Member since 2011 · 1k+ posts · 1k+ votes

13y

I can appreciate anyone who is outspoken but not without knowing what they are talking about.

Hang around, read some blogs, listen to some podcasts and learn a little.

Cheers,

1 Reply

Wayne Woodson

Investor · Nashville, TN · Member since 2009 · 483 posts · 228 votes

13y

Wow a wholesale bashing post in a wholesale thread. I swear every other day there is someone on here saying "wholesalers serve no place in the RE market" and "wholesaling is illegal cause my realtor buddy told me so".

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Tim G.

Rental Property Investor · San Diego, CA · Member since 2011 · 1k+ posts · 1k+ votes

13y

I'm amazed anyone took time to write more than a sentence in response to the post.

Once you add value, you get paid. No business model will last from ripping off people. Whether its buyers or sellers.

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David Weiss

Investor · Dallas-Ft.Worth, TX · Member since 2013 · 74 posts · 18 votes

13y

If a wholesaler brings me a deal that I can make work that I wouldn't have gotten on my own, he deserves to be paid.

I'm better off getting my own deals (cutting out the middle man improves profits) but if my marketing isn't keeping me as busy as I want to be and a wholesaler can help remedy that, they've earned their money.

It's as simple as that.

0 Reply

Anson YoungBusiness Member

Flipper/Rehabber · Denver, CO · Member since 2009 · 1k+ posts · 726 votes

13y

Originally posted by Patrick G.:

Well that was a disgustingly creepy analogy. I'm going to go wash up with bleach now.

C'mon, we all know that our houses are advertising themselves on the corner in Tijuana, just waiting for a gringo to buy them! Where is the real estate red light district? In amsterdam, do houses shake their moneymakers in windows?

Ah crap, I said I wasnt touching this one, but its just getting better as time goes on.

Podcast Guest on Show #235

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I sure wish I could sell my house to a wholesaler!

I sure wish I could sell my house to a wholesaler!

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