I think the question should be why Investors work with knowledgeable Wholesalers—a good wholesaler should know the market and good areas to invest in, they can run comps, and all the skills a realtor has, except we know other strategies that realtors like seller financing and how to pitch it, Novations, run hard complex rehab numbers etc. A seasoned investor won't work with a newbie wholesaler unless this person knows how to find good deals. I am a wholesaler in the Cincinnati area and have worked with developers and other investors.
Most realtors don't have the skills to find off-market properties or don't want to work to find them; the listing comes to them from friends and family or through the broker, and they make the commission. But investors are looking for deals off the market, and a good wholesaler is how you can do that. Wholesalers will negotiate the best deals, do all the marketing, and deal with all the transaction headaches; all a buyer/investor has to do is make sure they fund the deal. Not to bash realtors most don't even know how to run numbers on real estate deals, trust me; I know I spent time as operation manager for a small real estate team, and I was the one teaching them about cap rate, ROI, MAO, ARV and all that. From my understanding, it's the same for brokers. They don't get off-market deals, or if they do it's already going to select investors they have built a connection with. And you have to understand sellers now are not looking to pay closing costs, so many realtors are losing because sellers are going off the market where an investor will pay their closing price. I hope this helped. But everybody can win if realtors stop worrying about wholesalers. They can eat too, but some get all butt hurt cause we make so much money when we can all work together to eat. Abundance mindset always.
