All Forum Posts by: Marty True

@Shawn Ackerman to clarify... I made the point of receiving deals from wholesalers (who have the property under contract) and then later started receiving those same deals from other wholesalers/agents, after multiple inflated prices, to demonstrate how I found that this "daisy-chaining" was happening. Obviously I would not opt to do business with one of the higher deals than what I had already gotten from the original wholesaler.

My concern and point in posting this original post is to say that I don't always get the deals coming from the original wholesaler who has a deal under contract and it is not easy sometimes, to find out which wholesaler has it under contract. So these "re-wholesalers" are sending me deals that they do not have under contract but are "re-marketing" the deals to their own lists of buyers. If you read through this thread, you will see that many people concur that this is happening, throughout many markets in the US. I simply wanted to bring it to the power of the BP forums, to have the discussion about it and see if there's a way to stop it. It has pretty much caused me to stop using wholesalers at all, for deal sourcing. I have one wholesale company, that is doing things completely legit, that I will consider deals from...

@Mike Snyder there are a lot of tasks that I have a VA do in my businesses however, vetting real estate deals is definitely not one that I would give them. Having someone in another country, that is not in the real estate business, determine what are good or bad deals is not something I feel would be successful. Especially South Florida real estate investing. It has taken me 6 months to really get acclimated to the areas down here, since moving here back in December, so I would never give that task to a VA.

To your second question - yes there are some things that agents can be reported for but unfortunately all that happens in cases like this are mere "hand slaps" so it's not worth the time/effort.

@Josh Malenfant been a couple months since I contacted you and gave you my criteria - still haven't seen anything come in from you. I agree with everything you wrote above. You sounded like you had deals outside of the so-called "wholesale" deals in South Florida - would love to hear back from you to see how your deals are different.

@Dylan Tettemer send me a connect request and then I'll PM it to you (to avoid spam by putting it in here).

Hi @Dylan Tettemer I'd be happy to connect for your future relocation here to the Miami area.

Hi @Nick Yates I can give you great recommendations for realtors in all three of those areas. I've personally lived in all three of those cities and have personal connections to great realtors. Private message me and I can give you their contact info.

@Dalia S. There are a lot of gurus out there selling courses, teaching people how to do wholesaling unethically, illegally, and simply incorrectly. There are some wholesalers that are doing it right but unfortunately there is a much larger percentage that aren't - and it's hurting the relationship between wholesalers and cash buyers. And the sad part is... us cash buyers are the wholesalers' lifeblood. 

Back when I was starting out, I thought about potentially wholesaling and then I saw some people were "joint-wholesaling" to maximize the buyer pool. The way it worked in those "JV" situations is that the original wholesaler agreed to share the assignment fee not let the secondary wholesaler add a fee on top. This was an ethical way to maximize the buyer reach and still present cash buyers with a good wholesale deal, with plenty of room left, for them to make money.

Unfortunately, because of greed, now most wholesalers' lists ALL say somewhere on the list "Agents and Wholesalers Add Your Fee" or something to that effect. And that is where the term "daisy-chaining" comes from, in regards to this new "headache" us cash buyers have now, when dealing with wholesalers.

I'm not sure why anyone thinks it's a good idea to blatantly show their lifeblood (cash buyers) that they no longer care about us making money, as long as they get their fees.

I've pretty much stopped working with wholesalers completely because of this.

I hope this helps and good luck to you in your new pursuit! And I'm glad to see that you have a good idea of how you should approach wholesaling!

Hi @Dalia S. I'm not a wholesaler myself but as an investor, I have worked with various wholesalers. I'm not saying you have to do everything yourself, in that you could have a small team to help you. But yes, the process you mentioned above is pretty spot on. 

Cherish, that would be the right way to do it. Here in Florida, it has been a trend for brokers/agents to get on all the wholesalers' buyers lists and then they just add anywhere from 3% to $10k on top of the deal and send out to their own clients, adding zero value to the deal. This has made it so us buyers are not getting true "wholesale" deals because of the "daisy-chaining" of these deals. 

If you do decide to wholesale, please do us investors a favor and do real wholesaling rather than just adding more fees on top of the other wholesalers, deals.