All Forum Posts by: Katlynn Teague

I think social media glorified being a wholesaler the past couple years..

BUT I have met some fantastic ones. Just like anything else there are great ones and terrible ones. Same for agents! The great ones will stand the test of time and be invaluable to many people's path to financial freedom.

Being in the real estate business. People are people. Not ALL wholesalers are bad, not all Investors are bad, not all home owners are bad. Everyone has a choice, who they choose to deal with business or not. I can only speak for me. Everything I do is HONEST to my core.....For me there is no need to lie about anything to be frank.....I have worked with great honest people in this business even thou I am fairly new you have to know your stuff and know how to read peoples actions, actions will show you everything you need to know about a person. I am a TRUE people person, I actually care about EVERYONE being able to work together and win. Not saying any of this to get attention, in any regard. I am very picky on who I work with, I know my numbers, I actually LOVE this business. When you love people and you love what you do, GREAT things follow all the time!!!!

Here is the difference. A good real estate agent will bring value to a property owner and get their property sold for the highest price.

A good wholesaler will get the lowest price and extract the most value away from the property owner for themselves and the investor.

If a property never hits the open market there is no way its true value will ever be determined. Wholesaling is like any other off market ploy like (Opendoor). 

It’s a free market so go for it but unless a property owner has to sell this very minute, wholesaling does not have the best interest of the owner in mind. 

Quote from @Crystal Smith:

Quote from @Katlynn Teague:

Good morning BP,

I have a couple of questions this morning

-What is your opinion on wholesalers?

-Have you had a good experience when working with a wholesaler?

-What has been your biggest draw back from working with wholesalers, when purchasing properties to flip?

I am a licensed real estate agent who works at a national wholesale brokerage. I started this path to build capital so I can start purchasing my own properties to build a rental portfolio. As well as learn from the investors I work with, make connections in the industry and learn real estate investment from the inside out. My company has a five-week training course that teaches you all of the ins and outs of the wholesaling business. The training is intense, but the training also never stops and that is what makes me good at my job! 

However, I have many... "wholesalers" reach out to me who really do not have a clue in the world what they are doing. These people bring me daisy chained properties with inflated ARV's, laughable rehabs and obnoxious sales prices. All of this to say, that these kinds of wholesalers tarnish the reputation of the wholesalers who are in this business to help people on their path to financial freedom. I have seen many investors cringe at the word wholesale because they had such a bad experience with one in the past and officially write wholesalers off.

I absolutely love what I do, I love getting to meet people that started with nothing and were able to build an empire for themselves and their families. I love helping home owners who are on the verge of foreclosure pay off their debt to start over. Families who had a house fire and lost everything, being able to give them a fresh start. I also love helping people on their journey to financial freedom while helping them build that generational wealth. 

With that being said, What are your thoughts?

My thoughts on wholesalers- We have no problems with wholesalers. For us, they are the equivalent of property finders or bird dogs.  The more the better.  We do our due diligence on deals we receive from wholesalers; run our own analysis on the ARV; rental rate and/or what's required for a renovation. The only time we write a wholesaler off is if they do not properly control a property; i.e. have it under con

 You need wholesalers like you need trash men, plumbers, and title companies.  It doesn’t matter that they are making X amount on the deal they are apart of your funnel system.  If you take them out of the equation your funnel for new properties will shrink.  All of this is market dependent and how good your relationships are in your community.

Quote from @Katlynn Teague:

Good morning BP,

I have a couple of questions this morning

-What is your opinion on wholesalers?

-Have you had a good experience when working with a wholesaler?

-What has been your biggest draw back from working with wholesalers, when purchasing properties to flip?

I am a licensed real estate agent who works at a national wholesale brokerage. I started this path to build capital so I can start purchasing my own properties to build a rental portfolio. As well as learn from the investors I work with, make connections in the industry and learn real estate investment from the inside out. My company has a five-week training course that teaches you all of the ins and outs of the wholesaling business. The training is intense, but the training also never stops and that is what makes me good at my job! 

However, I have many... "wholesalers" reach out to me who really do not have a clue in the world what they are doing. These people bring me daisy chained properties with inflated ARV's, laughable rehabs and obnoxious sales prices. All of this to say, that these kinds of wholesalers tarnish the reputation of the wholesalers who are in this business to help people on their path to financial freedom. I have seen many investors cringe at the word wholesale because they had such a bad experience with one in the past and officially write wholesalers off.

I absolutely love what I do, I love getting to meet people that started with nothing and were able to build an empire for themselves and their families. I love helping home owners who are on the verge of foreclosure pay off their debt to start over. Families who had a house fire and lost everything, being able to give them a fresh start. I also love helping people on their journey to financial freedom while helping them build that generational wealth. 

With that being said, What are your thoughts?

My thoughts on wholesalers- We have no problems with wholesalers. For us, they are the equivalent of property finders or bird dogs.  The more the better.  We do our due diligence on deals we receive from wholesalers; run our own analysis on the ARV; rental rate and/or what's required for a renovation. The only time we write a wholesaler off is if they do not properly control a property; i.e. have it under contract or an LOI. 

It's never good to generalize, but haven't ever done a deal with a wholesaler. Have only found a few that had a clue. It's tough. I feel like too many watch youtube or go to a seminar and try to learn "how to get rich quick with other people's money, etc." I think many don't have the resources to actually purchase the property if they don't find a buyer - and that bothers me. I also feel that many take advantage of uneducated people. Currently, there is nearly zero people who couldn't make more money just selling their homes through traditional means on the mls market etc. Nearly everyone is at a breakeven point if even bought last year. Most people have a massive amount of equity and leave it on the table for the wholesaler to consume. There is a market for everything and everyone. I guess I just get tired of lowball offers in my inbox on every listing in my brokerage saying that we could get it done in 30 days, cash, for literally half the value of the home... If that was the case, I would personally buy every listing in my brokerage lol. 

Again I have learned that it isn't good to put everyone in the same category. If they can close a deal that they don't resell in the time period, I'm more ok with it. It's just when they drag a potential seller on and have zero means of closing where it hurts the potential seller who is only getting a fraction of their equity anyway. Just my 2 cents

As others have said, there are a FEW wholesalers that can bring you realistic deals but 99% will bring you deals that have overstated ARVs, underestimated rehabs and unrealistic reno periods.  I know if several investors that got burned going that route.  The vast majority of wholesalers do not know the business and after investing in one of the online courses that promise instant riches, you can imagine what type of deals you start to see being offered.  I have found that if you even so much as do a search on wholesalers, your Facebook and Google feeds will be jammed with wholesale programs that promise money with no effort. I have reached out to some of the bandit sign posters to see what they know and what they can bring me and have yet to find one that was not asking me for tips before the call ended.  There are some wholesalers that can bring you off market deals that work but if you do not know the market and what reno costs are, there are some better deals on Florida property east of Miami. Do you research and see if you have wholesalers in your area that can find the deals and re not greedy.  Check with your local REIG and see if they have wholesaler members you can meet with.

I just think that with the plethora of people selling the magic elixir of wholesaling on the Internet that there are way more bad ones than good ones anywhere.  Do your homework to find a good one or more than one but as I said, do one search and see how many "get rich quick" offers start popping up . . . get started with no money and no knowledge . . that says it all.

@Katlynn Teague I’m an agent too and I sometimes think it’s funny how much hate agents give to wholesalers, not realizing they are in the same boat to the general public.

The licensing process is not intensive and there is just as many bad agents as there are whole-sellers. I think as an investor you should keep your doors open to both if they present a decent offer. But just like how we’re going to filter through a ton of crap on our own, we’re going to have to filter out the same amount that comes from whole sellers and agents as well.

Gotta agree with @Bob Stevens. The bar is really low for becoming a wholesaler. The  bar is only slightly higher for becoming a realtor and they can be every bit as bad and shady as wholesalers.

The truly good wholesalers and truly good real estate agents who work really hard—they’re great.  That said, like Bob, I haven’t bought a listed property in a long time.

My mother taught us to eat food even if from someone you don’t like.

Pick wholesalers who are in the geographical area you want.  Train them in the types of property you’re looking for.  Develop a fee based approach for them.   Tell them how you want deals Served up.