All Forum Posts by: Riley Gilson

@Kenneth E.

My background is in web development. Would be interested in having a conversation with you. Send me a message on here and we can discuss.

I think the concept might need refinement but I like the direction.

Granted, we all know how @John Thedford feels about wholesaling - but - I on the other hand didn't find it to a "sketchy" (for lack of a better term) practice as some refer to it.

@Pratik P. I agree with you that nobody should be taking anyone's word in a business transaction. That applies to all industries even outside of wholesaling. 

My understanding is that in states even like mine (OHIO) you can wholesale and market a contract but you cannot market a property as though you would if you were an agent. You are representing the "Deal", not the house or their interest in the house. The deal or what I'd call from an investors perspective a "Lead" is something that you found and did the legwork on. Therefor, you should be compensated for said work.

There is clearly a market niche for wholesaling as the MLS an agents alike don't typically succeed in fulfilling investor needs. (generalization) There is a distinction between selling a personal interest in something and selling something for someone else's benefit.

If the concern was increased scrutiny from regulatory agencies is a concern, could you elaborate? Frankly, if I wanted to go after a wholesaler (as a regulator), I'd simply need to approach one as an investor and get added to their buyer's list.  

Please note that all of this is speculation at this point. I just wanted to get some feedback on the concept because conceptually it sounds like it might solve some "issues" in the industry. From the sounds of it I seem to be wrong. Which is OK, that was the point.

@David Faulkner The concept would essentially be a listing service. I don't follow your logic though. Do investors want to buy unlisted properties merely for the title of being unlisted? The MLS is not the place to buy properties as a savvy real estate investor. However, investors who leverage wholesalers currently and see the benefit, just want good deals w/ less work on their part. (generalization of course) 

The concept wasn't described to be another MLS w/ all the database etc, but rather a very simple listing service. Which, is something - albeit in a very indirect and inconsistent manner - investors subscribe to when working with a wholesaler.

Perhaps you can elaborate on your thought for me? The benefit would be broader access to deals below market value w/ increased ease of doing so. I thought that would be clear, but again the feedback seems to be generally opposed to such concept so I have a bias there I guess.

I think of it like this analogy. It's like shopping for a car, without having the option to look online. Sure I could call 7 dealerships for the car I want. Deal w/ 7 different people, ways of doing business, and price/quote formats. Or, I could look online w/ an easily digestible source of information about the cars. We are just talking about cars that are 5 years old w/ say specific features - to make the analogy seem more realistic.

@Sean Cole The thought is that it would be designed to abide by them. Focusing more on the contract then the property.

We are making some liberal assumptions here that there is no risk from that standpoint in the way it is managed. :)

Do appreciate the feedback though that you tend to reach out to more people to get them sold. The hope here would be to help drive more passive interest if you had that rapport. Might also create a sense of competition/urgency although not the prime directive here.

@Kevin O'Brien

It wouldn't provide the comps, but rather feedback from other investors like yourself. I don't think that is a value added product generally and definitely based off the feedback. Every investor has their own perspective when they look at those, so a system generating that would still be redundant.

The rating system is more so for the investors to reflect open feedback on wholesalers and deals as they evaluate them on their own. The intended benefit is to allow good wholesalers to shine and make life easier on the investor (really both parties at that point). 

The direction is intended to incentive quality wholesalers and discourage the opposite. At least for it to be a beneficial product anyway.

I appreciate the conversation and feedback on here. The general consensus I get is that the quality of the analysis is always a bit up in the air or is just something to be re-reviewed as a general rule of thumb. Most seem to agree on the generic value of someone essentially being a deal finder or marketer for you.

Follow up question to: @Pratik P. @Omid A. @Percy N. @Tony Gunter and @Kevin O'Brien

If there was a dedicated listing service on the web for these types of deals, would you utilize it to browse for them? The point would be not just list the deals but also provide a quality rating system for the wholesalers presenting the deals. Barrier to entry w/ cost to list could also be another mitigating factor. Benefit to the wholesaler would obviously be increased visibility and buyer pool.

I see something like this streamlining that deal transition period for all parties - hypothetically. Which is why I'm seeking your feedback.

Disclaimer: Make some assumptions that the above has also been flushed out w/  additional common sense features. My background is in web development/consulting.

Not sure if this is the best place to get the feedback I'm looking for, but hopefully someone has a keyword filter up just in case.

For those of you who buy from wholesalers on a regular or semi regular (open to interpretation) basis, what is your main driver?

Is it the fact that they have done a lot of the legwork for you? Do you trust their ability to spot good deals for your hold or flip strategy?

If you are a wholesaler who feels you have a good understanding of why your buyer continues to utilize your services, please feel free to chime in.

@Andrew Davis I'm curious as to what your model of execution looks like.

I was considering something similar for the industry but on a more scale able basis. Would be interested in seeing what your approach was like when it came to wholesalers.

Yeah it can be done legally as long as your not participating in ILLEGAL activities. For instance, marketing a property that you don't own. It is also recommended that you have some type of transnational lender in case you need to close. As long as you can prove you had the means and (stated at this point cause who would know better) intent to close, the state will not bother you.

Most don't do that last part. Hence the warnings above and other issues. Although if you are doing a good job in the first place this wouldn't or rather shouldn't be relevant.

It's really a matter of education. Ensure you get a broad range of comments/information before being scared or gung-ho about wholesaling. 

@Jacob Michaels would you be willing to send it my way as well?