Quote from @Jennifer Dixon:
Quote from @Scott Mac:
Quote from @John Slater:
Quote from @Scott Mac:
Regarding wholesaling,
( I know zero about wholesaling SFH's).
It seems like it would take a lot of time to find someone who does not want (a Realtor to set a value) and list a home properly?
How do you wholesalers set a price that's below market enough to make a profit (that's more than a Realtor & Broker would charge a deal for)?
Do you tell them you are valuation experts or something (but are misleading them to make a profit)?
Basically it seems like finding someone "ignorant of the process" enough to sell for a price cut to you (but secretly to someone else would be like finding a needle in a haystack.
Wouldn't just being a legal Realtor bring in more money with the same amount of time and effort--due to more available potential clients?
Just my 2 cents!
strong opinion for “no experience” in wholesaling haha
without a doubt I know there are wholesalers who take advantage, mislead, and get sellers under contract at a lower price than might make sense to you or I. But then again, I know flippers and buy n hold investors who would do the same. Isn’t most of investors business about getting a discount?? does that mean ALL take advantage, of course not.
a wholesaler is calculating their numbers based on ARV, condition, cost of rehab etc. same as a flipper, but taking an assignment fee instead. It’s still the same, finding motivated sellers who “need” to sell at a discount for whatever reason.
I’m an agent and have wholesaled. The numbers just made sense. The challenge I have with wholesalers is to the seller they are buying the house and if they can’t find a buyer, then what???
Thanks,
I really have no opinion on it, I was just guessing how it worked.
It seems like a long shot finding people willing to sell like this at a price point where you can make a profit.
I also see people who intend to rely on this tactic to get a down payment together vs work a 2nd job for the money.
Kind of like , if you're looking for golden nuggets in Golden Gate Park, your going to have to look aa long time just to find one.
Or am I wrong and someone can do a ton of deals like this every year and outstrip the income from working a second job?
There are several companies wholesaling ALL over - yes, some are not --what we would call the most upstanding, but I think you're missing a very real and surprisingly larger portion of the demographic - or at least discounting it far too heavily in the form of a negative perception based on ignorance vs actual knowledge.
Truthfully, some people wholesale their homes - ie sell to a wholesaler bec the process is just plain easier. I bought a property at wholesale bec the owner was a LEGIT hoarder. Could that house been listed on the MLS? sure. Would people have wanted to go in ? Only a few. Would the person with the hoarding propensity be able to tolerate other "strangers" rummaging through their precious belongings? Probably not.
Wholesaling definitely serves a purpose. Some folks do give it a bad name, but, I for one, am thrilled to partner with wholesalers as much as possible, and I'd like to amp up my own wholesaling expertise bec I am doing the home owner a service.
Many realtors talk badly about wholesalers and I frankly just think it is a lack of knowledge forming strong opinions.
Agreed - I have tried working with many wholesalers but am yet to find a good one in 10 years. That being said, I have wholesaled and it is great strategy that does serve a purpose.
@Scott Mac - you're not wrong, it isn't an easy business but if you can make a solid 10-15k per transaction you don't need to do many to stay away from the 2nd job.
@Thomas Heyde - the biggest challenge people miss when getting into wholesaling is whether a flipper or wholesaler, the business is about finding motivated sellers to work with. As a wholesaler you might not carry the weight to flip, but you are looking to sell to an investor who still wants some meat on the bone. Some wholesalers try to hit that home run and make the big bucks without doing the work of a flipper and is when they run in to trouble finding an end buyer. Be conservative in your numbers, take the singles, and with consistent lead gen (probate and pre-foreclosures and vacant) are my favorites, occasionally you come across a home run.
