Why does "Wholesaling" have a negative connotation?

[Grant Sylvester]

Hi Everyone! I'm newer to BP, the forum that is, but I've been a huge fan of the podcast over the last year and a half. I've learned a lot and I'm grateful for the platform! I'm interested to hear from different people if they think "Wholesaling" has a negative association and why? Any thoughts, feedback or questions are welcome!

Thanks in advance, Friends! 

[Kamil Baldyga]

Hey Grant! So as an investor specialist agent I work with a lot of wholesalers who help source properties for my investor clients. I think that, in general, wholesalers are awesome. However, there are definitely some wholesalers who are better than others. When it comes to wholesaling, there isn't much barrier to entry or regulation (though it seems like everywhere is slowly pushing towards it). Because of that, nothing is preventing some wholesalers from performing sketchy practices and skewing their numbers to make a sale. A wholesaler's reputation is incredibly important.

[Grant Sylvester]

Originally posted by @Kamil Baldyga:

Hey Grant! So as an investor specialist agent I work with a lot of wholesalers who help source properties for my investor clients. I think that, in general, wholesalers are awesome. However, there are definitely some wholesalers who are better than others. When it comes to wholesaling, there isn't much barrier to entry or regulation (though it seems like everywhere is slowly pushing towards it). Because of that, nothing is preventing some wholesalers from performing sketchy practices and skewing their numbers to make a sale. A wholesaler's reputation is incredibly important.

Hi Kamil! Thanks for the response. I agree with you 100% man, the low barrier to entry is a double edged sword that can have negative consequences. It certainly puts a lot of faith into an individual who may or may not know what they are doing.

[Nick C.]

Lying to sellers, lying to buyers, lying about ARVs, lying about rehab costs, annoying marketing tactics. And all this stuff could be ignored and wouldn't be such a big deal except there's sooo many of them. So one here and there isn't a big deal, but being inundated with texts, cold calls, and unsolicited emails from them and their VA's making the phone unanswerable is a bummer.

And I know the common response will be that there's some good ones out there, but they are few and far between. 

[Will Barnard]

Many of them operate illegally (unlicensed), lie about rehab and exit value numbers, lie to the seller about their "partners" or inspectors coming to view the property (when it is actually potential buyers), etc. You also have wholesalers coming on this platform and advising others to do illegal or immoral things. This angers and frustrates others who operate above board, including the few good wholesalers out there. It is argued that they rob sellers of their equity and take advantage of the uninformed as they have NO fiduciary duty to the seller.

[Account Closed]

Originally posted by @Grant Sylvester:

Hi Everyone! I'm newer to BP, the forum that is, but I've been a huge fan of the podcast over the last year and a half. I've learned a lot and I'm grateful for the platform! I'm interested to hear from different people if they think "Wholesaling" has a negative association and why? Any thoughts, feedback or questions are welcome!

Thanks in advance, Friends! 

It's like saying "what is the color "green"? Everybody has a different idea of the variations of the color "green" and there are a million shades. Everybody has their idea of what "wholesaling" is. 

Wholesaling, when done legally, transfers a piece of paper between two parties. There just happens to be some real estate attached to the paper in this case. What can get you into trouble is that, I think in almost all states, it's illegal for a non-licensed individual to represent a third party in a real estate transaction and collect consideration for doing so. It's also wrong & illegal to misrepresent the transaction to any party, seller, buyer, financier, (it's called lying). That can get you prosecuted and sued. So don't do that.  It is however legal to sell (or assign) a contract from yourself to another person.  Just understand that you can't advertise the property but you can advertise the contract. Among other things. 

[Grant Sylvester]

@Account Closed - Brilliant break down, Mike! Thanks for response. It sounds like you have a neutral viewpoint on Wholesaling then? After reading a small sampling of BP forums on the topic it's my opinion that most traditional investors don't understand what it is or have had poor experiences with wholesalers.

[Grant Sylvester]

Originally posted by @Nick C.:

Lying to sellers, lying to buyers, lying about ARVs, lying about rehab costs, annoying marketing tactics. And all this stuff could be ignored and wouldn't be such a big deal except there's sooo many of them. So one here and there isn't a big deal, but being inundated with texts, cold calls, and unsolicited emails from them and their VA's making the phone unanswerable is a bummer.

And I know the common response will be that there's some good ones out there, but they are few and far between. 

Thanks for the response, Nick! I'm with you man, you forgot one though, "Lying to other wholesalers about not being a wholesaler" lol. Unfortunately, your words ring true. You're also right, I think there are some good ones out there but the lack of regulation and accountability means that all the parties involved have to work with integrity and that doesn't happen all of the time. If you were to work with a wholesaler what would you expect or require?

[Grant Sylvester]

Originally posted by @Will Barnard:

Many of them operate illegally (unlicensed), lie about rehab and exit value numbers, lie to the seller about their "partners" or inspectors coming to view the property (when it is actually potential buyers), etc. You also have wholesalers coming on this platform and advising others to do illegal or immoral things. This angers and frustrates others who operate above board, including the few good wholesalers out there. It is argued that they rob sellers of their equity and take advantage of the uninformed as they have NO fiduciary duty to the seller.

Thanks for the response, Will! I've seen a lot of your responses and, they're always super detailed and insightful. At the current date of this post, I believe only Oklahoma and Illinois require a license to wholesale and, Pennsylvania and Ohio require information(code of ethics/rules) to be made known to the seller. Therefore most are not technically operating illegally right. As an investor, do you expect or prefer the wholesaler to provide information on the rehab or ARV? I've always been of the thought process that each investor should do his or her due diligence. I think you're right about the fiduciary part and, long term, wholesaling will eventually become regulated across all states, not just a select few. Then that should hopefully weed out the ones that are dishonest or teach others to do illegal or immoral things. Lastly, do you buy from wholesalers? If so how, do you structure a working relationship?

Thanks, Will!

[Brandon Goldsmith]

The low barrier of entry makes it very easy for anyone to get in and get started. I think a lot of them are ethical but also a good handful that give wholesaling a bad name. I think people who plan to stay in real estate long enough should just get licensed @Grant Sylvester

[Joe S.]

Originally posted by @Grant Sylvester:

Hi Everyone! I'm newer to BP, the forum that is, but I've been a huge fan of the podcast over the last year and a half. I've learned a lot and I'm grateful for the platform! I'm interested to hear from different people if they think "Wholesaling" has a negative association and why? Any thoughts, feedback or questions are welcome!

Thanks in advance, Friends! 

 I don’t necessarily have a problem with wholesalers. What I do have a problem with is people that have never wholesaled for a living run around saying start with wholesaling… Or someone says they’re broke, don’t have a job, bad credit, and they’re going to build great wealth by wholesaling in order to put down payment on properties and then cheered on by a bunch of newbies.

[Will Barnard]

Originally posted by @Grant Sylvester:

Originally posted by @Will Barnard:

Many of them operate illegally (unlicensed), lie about rehab and exit value numbers, lie to the seller about their "partners" or inspectors coming to view the property (when it is actually potential buyers), etc. You also have wholesalers coming on this platform and advising others to do illegal or immoral things. This angers and frustrates others who operate above board, including the few good wholesalers out there. It is argued that they rob sellers of their equity and take advantage of the uninformed as they have NO fiduciary duty to the seller.

Thanks for the response, Will! I've seen a lot of your responses and, they're always super detailed and insightful. At the current date of this post, I believe only Oklahoma and Illinois require a license to wholesale and, Pennsylvania and Ohio require information(code of ethics/rules) to be made known to the seller. Therefore most are not technically operating illegally right. As an investor, do you expect or prefer the wholesaler to provide information on the rehab or ARV? I've always been of the thought process that each investor should do his or her due diligence. I think you're right about the fiduciary part and, long term, wholesaling will eventually become regulated across all states, not just a select few. Then that should hopefully weed out the ones that are dishonest or teach others to do illegal or immoral things. Lastly, do you buy from wholesalers? If so how, do you structure a working relationship?

Thanks, Will!  

Thanks for the kind words.

The legalities mentioned above are not quite accurate, as many wholesale by assigning a contract which involves them finding the deal, negotiating the deal, locking the deal, marketing the deal publicly to find a buyer and then selling the deal for a fee which brings buyer and seller together. In the eyes of the law here in CA, that is brokering and without a license, you have violated the law. This holds true in almost all states. Now, if you buy, purchase, then market and sell your deal via double closing where you do not market it until you own it, then you have not brokered anything, you are acting in the capacity of an owner who can market and sell their own property without any license requirements. There are several other ways and means to legally wholesale in all states without brokering without a license but your process must be done correctly.

Yes, I have purchased from wholesalers but I am very cautious in doing so and they are almost always very greedy in their profit margin making the deals so tight, they are risky for me and no risk to them (a completely unfair situation). I have lost money on two of the approx 6-7 homes I have purchased from wholesalers. That is about a 33% deal loss margin which I would say is very high. One was a simple case of bad circumstances and mis-calculations on my part for the ARV, but the wholesaler also pitched an even higher ARV on that one too.

Yes, I expect to be provided a ballpark rehab budget and ARV from the wholesaler so at quick glance, I can see if it is something worth analyzing. Besides, it is my opinion that a wholesaler cannot possible know what to offer if they do not know how much the correct ARV or rehab is, otherwise, how the heck can they know if there is a spread or not? Most inflate ARV and deflate rehab to make the deal the "best case scenario" so they can sell it, this is where I and many others take issue with that as it is nothing more than lying, plain and simple. Yes the investor should still run there own numbers, we have to as so many wholesalers are lying or are just ignorant to the truth on numbers but that does not relieve the wholesaler from doing his/her part of providing their numbers based on real due diligence and not some number pulled out of their rear end to paint the picture rosy.

In my business, my reputation is EVERYTHING and I have spent a lifetime building it. No way I let it get tarnished over any one deal by screwing over another. I have lost over $250k on one flip and 6 figures on another where the deals went bad for one reason or another and NEVER did I walk away from my investors telling them sorry, I lost, you lost. I paid them off anyways and moved on. So when wholesalers lie or cheat, or act in the greedy manner I see every week, I become frustrated and angry and will stand up for what is right and legal.

[Daniel Smyth]

@Grant Sylvester

Wholesalers are great!

They find the deals, work some figures, and expect some cash for their work.

Just like a used car or mobile home salesman.

If you do too many at once, you are actually in business, and as with any regulated business, you need a license. Most of the issues are with those working a business without the license every realtor is required to get and maintain.

It's the same for cars, boats, firearms, or timeshares. Once every now and then can be tolerated. If you intend to Wholesale as a business, you should look into proper legal rules in your area.

I work with Wholesalers. I work my numbers too. When the numbers are close, I usually get a deal I can live with. If the numbers are way off, I walk the other way.

[Jennie Berger]

@Nick C. I would agree in part with this. Though I'd add that many newbie and inexperienced wholesalers are not lying but rather unknowing/clueless. Their repair estimates, timelines, and ARVs are calculated based on their best guess. Or the best info they received from so called 'experts' in those fields.

.

I am not a wholesaler, per se. And though you don't technically need to have construction experience to wholesale, I believe wholeheartedly that those of us who GC our own projects, sell to retail buyers on the back end (projects we completed), and have construction backgrounds, usually prove to be the BEST wholesalers since our numbers are typically as honest and spot on as you're gonna find anywhere.

[Grant Sylvester]

Originally posted by @Will Barnard:

Originally posted by @Grant Sylvester:

Originally posted by @Will Barnard:

Many of them operate illegally (unlicensed), lie about rehab and exit value numbers, lie to the seller about their "partners" or inspectors coming to view the property (when it is actually potential buyers), etc. You also have wholesalers coming on this platform and advising others to do illegal or immoral things. This angers and frustrates others who operate above board, including the few good wholesalers out there. It is argued that they rob sellers of their equity and take advantage of the uninformed as they have NO fiduciary duty to the seller.

Thanks for the response, Will! I've seen a lot of your responses and, they're always super detailed and insightful. At the current date of this post, I believe only Oklahoma and Illinois require a license to wholesale and, Pennsylvania and Ohio require information(code of ethics/rules) to be made known to the seller. Therefore most are not technically operating illegally right. As an investor, do you expect or prefer the wholesaler to provide information on the rehab or ARV? I've always been of the thought process that each investor should do his or her due diligence. I think you're right about the fiduciary part and, long term, wholesaling will eventually become regulated across all states, not just a select few. Then that should hopefully weed out the ones that are dishonest or teach others to do illegal or immoral things. Lastly, do you buy from wholesalers? If so how, do you structure a working relationship?

Thanks, Will!  

Thanks for the kind words.

The legalities mentioned above are not quite accurate, as many wholesale by assigning a contract which involves them finding the deal, negotiating the deal, locking the deal, marketing the deal publicly to find a buyer and then selling the deal for a fee which brings buyer and seller together. In the eyes of the law here in CA, that is brokering and without a license, you have violated the law. This holds true in almost all states. Now, if you buy, purchase, then market and sell your deal via double closing where you do not market it until you own it, then you have not brokered anything, you are acting in the capacity of an owner who can market and sell their own property without any license requirements. There are several other ways and means to legally wholesale in all states without brokering without a license but your process must be done correctly.

Yes, I have purchased from wholesalers but I am very cautious in doing so and they are almost always very greedy in their profit margin making the deals so tight, they are risky for me and no risk to them (a completely unfair situation). I have lost money on two of the approx 6-7 homes I have purchased from wholesalers. That is about a 33% deal loss margin which I would say is very high. One was a simple case of bad circumstances and mis-calculations on my part for the ARV, but the wholesaler also pitched an even higher ARV on that one too.

Yes, I expect to be provided a ballpark rehab budget and ARV from the wholesaler so at quick glance, I can see if it is something worth analyzing. Besides, it is my opinion that a wholesaler cannot possible know what to offer if they do not know how much the correct ARV or rehab is, otherwise, how the heck can they know if there is a spread or not? Most inflate ARV and deflate rehab to make the deal the "best case scenario" so they can sell it, this is where I and many others take issue with that as it is nothing more than lying, plain and simple. Yes the investor should still run there own numbers, we have to as so many wholesalers are lying or are just ignorant to the truth on numbers but that does not relieve the wholesaler from doing his/her part of providing their numbers based on real due diligence and not some number pulled out of their rear end to paint the picture rosy.

In my business, my reputation is EVERYTHING and I have spent a lifetime building it. No way I let it get tarnished over any one deal by screwing over another. I have lost over $250k on one flip and 6 figures on another where the deals went bad for one reason or another and NEVER did I walk away from my investors telling them sorry, I lost, you lost. I paid them off anyways and moved on. So when wholesalers lie or cheat, or act in the greedy manner I see every week, I become frustrated and angry and will stand up for what is right and legal.

Super detailed post breakdown, Will! I appreciate you explaining everything in a very simple manner. I understand what you mean regarding the legality issues, inflation or outright lying on the ARV, and lack of morality that is encountered the majority of the time when others interact with wholesalers.

This is very helpful information as it helps me get a better understanding of what a good relationship looks like between a seller, wholesaler, and finally the end buyer. Anddd what it would mean to operate a wholesale business legally and ethically that other investors would enjoy partnering with. :)

[Grant Sylvester]

Originally posted by @Brandon Goldsmith:

The low barrier of entry makes it very easy for anyone to get in and get started. I think a lot of them are ethical but also a good handful that give wholesaling a bad name. I think people who plan to stay in real estate long enough should just get licensed @Grant Sylvester

 That last part you said is spot on, Brandon! I totally agree!

Thanks man!

[Grant Sylvester]

Originally posted by @Daniel Smyth:

@Grant Sylvester

Wholesalers are great!

They find the deals, work some figures, and expect some cash for their work.

Just like a used car or mobile home salesman.

If you do too many at once, you are actually in business, and as with any regulated business, you need a license. Most of the issues are with those working a business without the license every realtor is required to get and maintain.

It's the same for cars, boats, firearms, or timeshares. Once every now and then can be tolerated. If you intend to Wholesale as a business, you should look into proper legal rules in your area.

I work with Wholesalers. I work my numbers too. When the numbers are close, I usually get a deal I can live with. If the numbers are way off, I walk the other way.

Hi Daniel, thanks for the response! I like your explanation of it as well. It can become a business and, like any business, it needs to operate within the rules if it is going to achieve long term success and sustainability.

Thanks, Daniel!

[Grant Sylvester]

Originally posted by @Joe S.:

Originally posted by @Grant Sylvester:

Hi Everyone! I'm newer to BP, the forum that is, but I've been a huge fan of the podcast over the last year and a half. I've learned a lot and I'm grateful for the platform! I'm interested to hear from different people if they think "Wholesaling" has a negative association and why? Any thoughts, feedback or questions are welcome!

Thanks in advance, Friends! 

 I don’t necessarily have a problem with wholesalers. What I do have a problem with is people that have never wholesaled for a living run around saying start with wholesaling… Or someone says they’re broke, don’t have a job, bad credit, and they’re going to build great wealth by wholesaling in order to put down payment on properties and then cheered on by a bunch of newbies.

Hi Joe, thanks for the response! Another great point, wholesaling can be falsely romanticized into something that it is not and that can lead to others negatively impacting other sellers and investors. I guess that's one of the downsizes to a low barrier to entry model.

Thanks, Joe!

[Brandon Sturgill]

@Grant Sylvester the only reason wholesalers are wholesaling is they never learn to structure a deal...they'll pay $5,000 for a class to learn to wholesale and never learn to structure a purchase money mortgage or work with other peoples money to secure deals for themselves...seems like a vicious cycle to me...

Wholesaling is not investing...period...it has a marginal place at the bottom of the continuum...you can be the best trash man in the city, but you're still a trash man...nothing personal against trash men, of course. 

[Account Closed]

Originally posted by @Grant Sylvester:

Originally posted by @Will Barnard:

Originally posted by @Grant Sylvester:

Originally posted by @Will Barnard:

Many of them operate illegally (unlicensed), lie about rehab and exit value numbers, lie to the seller about their "partners" or inspectors coming to view the property (when it is actually potential buyers), etc. You also have wholesalers coming on this platform and advising others to do illegal or immoral things. This angers and frustrates others who operate above board, including the few good wholesalers out there. It is argued that they rob sellers of their equity and take advantage of the uninformed as they have NO fiduciary duty to the seller.

Thanks for the response, Will! I've seen a lot of your responses and, they're always super detailed and insightful. At the current date of this post, I believe only Oklahoma and Illinois require a license to wholesale and, Pennsylvania and Ohio require information(code of ethics/rules) to be made known to the seller. Therefore most are not technically operating illegally right. As an investor, do you expect or prefer the wholesaler to provide information on the rehab or ARV? I've always been of the thought process that each investor should do his or her due diligence. I think you're right about the fiduciary part and, long term, wholesaling will eventually become regulated across all states, not just a select few. Then that should hopefully weed out the ones that are dishonest or teach others to do illegal or immoral things. Lastly, do you buy from wholesalers? If so how, do you structure a working relationship?

Thanks, Will!  

Thanks for the kind words.

The legalities mentioned above are not quite accurate, as many wholesale by assigning a contract which involves them finding the deal, negotiating the deal, locking the deal, marketing the deal publicly to find a buyer and then selling the deal for a fee which brings buyer and seller together. In the eyes of the law here in CA, that is brokering and without a license, you have violated the law. This holds true in almost all states. Now, if you buy, purchase, then market and sell your deal via double closing where you do not market it until you own it, then you have not brokered anything, you are acting in the capacity of an owner who can market and sell their own property without any license requirements. There are several other ways and means to legally wholesale in all states without brokering without a license but your process must be done correctly.

Yes, I have purchased from wholesalers but I am very cautious in doing so and they are almost always very greedy in their profit margin making the deals so tight, they are risky for me and no risk to them (a completely unfair situation). I have lost money on two of the approx 6-7 homes I have purchased from wholesalers. That is about a 33% deal loss margin which I would say is very high. One was a simple case of bad circumstances and mis-calculations on my part for the ARV, but the wholesaler also pitched an even higher ARV on that one too.

Yes, I expect to be provided a ballpark rehab budget and ARV from the wholesaler so at quick glance, I can see if it is something worth analyzing. Besides, it is my opinion that a wholesaler cannot possible know what to offer if they do not know how much the correct ARV or rehab is, otherwise, how the heck can they know if there is a spread or not? Most inflate ARV and deflate rehab to make the deal the "best case scenario" so they can sell it, this is where I and many others take issue with that as it is nothing more than lying, plain and simple. Yes the investor should still run there own numbers, we have to as so many wholesalers are lying or are just ignorant to the truth on numbers but that does not relieve the wholesaler from doing his/her part of providing their numbers based on real due diligence and not some number pulled out of their rear end to paint the picture rosy.

In my business, my reputation is EVERYTHING and I have spent a lifetime building it. No way I let it get tarnished over any one deal by screwing over another. I have lost over $250k on one flip and 6 figures on another where the deals went bad for one reason or another and NEVER did I walk away from my investors telling them sorry, I lost, you lost. I paid them off anyways and moved on. So when wholesalers lie or cheat, or act in the greedy manner I see every week, I become frustrated and angry and will stand up for what is right and legal.

Super detailed post breakdown, Will! I appreciate you explaining everything in a very simple manner. I understand what you mean regarding the legality issues, inflation or outright lying on the ARV, and lack of morality that is encountered the majority of the time when others interact with wholesalers.

This is very helpful information as it helps me get a better understanding of what a good relationship looks like between a seller, wholesaler, and finally the end buyer. Anddd what it would mean to operate a wholesale business legally and ethically that other investors would enjoy partnering with. :) 

Real estate is hard. Or was that "math is hard"? I can't remember, I get the two mixed up.

[Grant Sylvester]

Originally posted by @Brandon Sturgill:

@Grant Sylvester the only reason wholesalers are wholesaling is they never learn to structure a deal...they'll pay $5,000 for a class to learn to wholesale and never learn to structure a purchase money mortgage or work with other peoples money to secure deals for themselves...seems like a vicious cycle to me...

Wholesaling is not investing...period...it has a marginal place at the bottom of the continuum...you can be the best trash man in the city, but you're still a trash man...nothing personal against trash men, of course. 

Hi Brandon! Thanks for the response man. Yours made me smile haha.

Sheesh, lol! "you can be the best trash man in the city, but you're still a trash man" strong opinions but I respect it. I do agree with you that wholesaling is not investing, it's a sales and marketing business, and real estate happens to be the product.

Do you work with wholesalers, Brandon? Or have you in the past?

[Derrick E.]

Easy answer.....

Real wholesalers who actually run a business and know what they are doing. Perfectly fine. Unfortunately, those are few and far between.

The barrier to entry for wholesaling is so low that it attracts a ton of dreamers, people who are inexperienced, and people looking to "get rich quick." This in turn, ruins the reputation for the entire industry. Everyone watches a few YouTube videos and thinks they can make some quick easy money through wholesaling. 

[Grant Sylvester]

Originally posted by @Derrick E.:

Easy answer.....

Real wholesalers who actually run a business and know what they are doing. Perfectly fine. Unfortunately, those are few and far between.

The barrier to entry for wholesaling is so low that it attracts a ton of dreamers, people who are inexperienced, and people looking to "get rich quick." This in turn, ruins the reputation for the entire industry. Everyone watches a few YouTube videos and thinks they can make some quick easy money through wholesaling. 

Hi Derrick! Thanks for the response man.

I think this is a pretty accurate depiction of what happens. The part about YouTube is pretty spot on!

[Brian Nally]

It's the easiest "system" to package up and sell to people that don't know any better, unfortunately.  As a result you have a lot of people calling themselves "experts" who have never done a deal in their lives.  Honestly, I find it to be easy competition to frame myself as a credible, experienced investor against. 

[Will Barnard]

Originally posted by @Derrick E.:

Easy answer.....

Real wholesalers who actually run a business and know what they are doing. Perfectly fine. Unfortunately, those are few and far between.

The barrier to entry for wholesaling is so low that it attracts a ton of dreamers, people who are inexperienced, and people looking to "get rich quick." This in turn, ruins the reputation for the entire industry. Everyone watches a few YouTube videos and thinks they can make some quick easy money through wholesaling. 

 This right here pretty much sums up the majority of wholesalers. To be clear, there are plenty who operate legally, morally, and ethically, bit they are in the minority of this group. Gurus selling and preaching their wholesaling courses and systems are a huge culprit to this. Perhaps one day they will go to jail for such profiteering, we can only hope.

[Steve K.]

@Grant Sylvester one example comes from right here on a BP thread from a few months ago: a first-time wholesaler connected with someone trying to sell a challenging property in the south (I believe it was rural Mississippi but could have been Louisiana or Alabama, somewhere in a small town in that neck of the woods anyway). The wholesaler connected the seller with a buyer and got an “investor friendly” title company from Michigan involved who he had never worked with before. Experienced folks from the local market were chiming in and criticizing the wholesaler, saying he didn’t know enough to handle that property, what he was doing was brokering without a license, etc. and other wholesalers were chiming in supporting the first-time wholesaler saying it’s not that hard don’t listen to the haters etc. Long story short the title company, which ended up being fake, made off with about $10k in earnest money and the deal fell through putting the seller in an even tougher spot than they were in before, and creating some finger-pointing as everyone blamed the others. It was clearly the wholesalers fault for involving the shady title company to hold the earnest money and handle the paperwork. Not that this couldn’t have happened with agents involved, wire fraud is unfortunately common in the industry, but an experienced agent would have been much less likely to set somebody up with a fake title company and have them wire $10k to complete strangers across the country without looking into them more. They also would have had coverage from errors and omissions insurance, oversight from a regulatory body, etc. It’s just one example of course but I thought it was eye opening. There is a lot that can go wrong when someone with no experience basically just starts brokering real estate off the couch.