Learning to deal with Wholesalers

I went on a trip to help find some more areas to buy more investment real estate in. Tim my agent in the Ohio area set up a meeting with a big wholesaler that owned over 80 properties in one of the areas I liked.

We usually buy directly from the bank, but in this one area things were getting bought up very quickly by my company and others. Leaving a void for some my investors.

We met with the wholesalers for two days and looked at there properties. They did have some good and bad properties. In fact we purchased one that day that I thought was a super deal. It was a duplex that cash flowed very well. I know the rents because of past purchases in the same area.

The wholesaler was well connected and had another assistant with him that was showing us his homes also. I liked some and some I didn't.

We looked at 4 properties that we liked and said we would purchase them. They had told us what the properties were worth and based on that we said we would purchase them. When we went back and comped the properties( I always do this to make sure of what the properties are worth) and didn't like what we saw on two of them.

We went back the next day to tell them our concerns and the assistant got verbally upset. I later learned he was in some financial trouble and needed to dump some properties to get some much needed funding. So his opinion of the properties were very screwd because he was looking out for himself not me or my clients.

I wanted to write this story to make sure when your buying wholesale real estate make sure you comp the properties out and get the real price of a home. If they get upset over that then don't do business with them. I ended up do business with the wholesaler because he understood my concerns and wanted me to get a great deal. The assistant was upset both verbally and visually and I didn't want to deal with him.

I always like to buy real estate anyway I can as long as everything is verified. Wholesalers can be very good for your business but always verify the values of the properties you intend to invest in.

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Brett young
Valley Realty
Owner/ CEO Roof Top Investment
Real Estate Investment