Where do realtors fit into the wholesale process?

[tampasteph]

Raj,

One of the wholesalers/rehabbers in my market who I do a lot of business with just started going after REOs (after I wholesaled a sweet deal to him that I got from a bank).  I've been telling him for the last 6 months that there is money to be made in REOs, and his response was pretty much exactly the same as yours.   Over and over again he told me that the only way you could make money in REOs was if you had an "in" with one of the agents.  Well, he's on course to make 40k this month, and I know for a fact (because I talk to him on a daily basis), that he does not have an "in" with any of the REO agents.  What he does have is a solid buyers list, and the ability to make nice, clean offers (large deposits, quick closes, no contingencies).  He is cleaning house right now, and he just got started.

The opportunity is there.  Take it or leave it.

That's not a knee-jerk reaction, btw.  I'm just telling it like it is.

Steph

[Roger J]

And steph, we've all agreed that markets are different.  No offense, but yours sucks right now.  Deals will be more and better.  The opportunity is THERE.

But you said it yourself, wholesaler/REHABBER.  Not a pure wholesaler, and I'd wager, not necessarily selling his "wholesale" deals to another true rehabber either, but I could be wrong.

Raj

[tampasteph]

Raj,

Regarding the Tampa market sucking- I guess that depends on how you look at it.   I think it's great.  My buyers think it's great.  The guys who were making easy money during the boom might have a different opinion, however. 

What difference does it make who he's selling his deals to?  They are still wholesale deals  no matter who the end buyer is.  And, he's getting all of them off of the mls.  The majority of them he is wholesaling, and he's cherry picking the best ones to keep as rentals.  Not a bad strategy, I'd say.

It's only going to get better (or worse, according to some), as the market continues to get innundated with REOs.   Almost all of the houses that are listed under 100k right now are either short sales or REOs.  It's crazy.  It's creating the perfect storm for a wholesaler who has a nice buyers list.  I plan on taking full advantage....

Steph 

[Roger J]

What difference does it make who he's selling his deals to?  They are still wholesale deals

Well, if we're talking about the same thing, actually it does make a difference.  A wholesaler in the strict term, buys a property at a big discount in order to sell to another investor (a rehabber) in order for them to make a profit retailing.  If we're both not talking about this, then we're disagreeing on two different things.

Yes, you can BUY wholesale deals off the MLS.  That is a deal that is wholesale priced.  I buy 90% of my deals through the MLS.  It is much harder to buy deals that can be flipped to a retailer in which they can make money (not that you can't flip them, just that they won't make any money on it).

And who is buying IS important because there is wholesaling and then there is, what I like to call, wholetailing, where the property is still sold at a discount where a landlord or a handyman/buyer would love it, but not at a price for a true rehabber/retailer.

Just trying to get to the same page. 

Raj

[HardMoneyTampa]

Raj...

i posted this topic because i was looking for some clarification.  Considering you were the first to respond, and totally misinformed me with your blanket ASSumption, i find it funny that you insist on having the last word in this discussion... i dont care how many properties you've bought or how many posts you have on this forum, or how much money you have in your bank account, plain and simple, you were wrong.... cut your losses short and please stop knit picking other peoples words... im getting second hand embarrassment from you...

[tampasteph]

Raj,

The deals I'm getting, and those that other wholesalers are getting off the mls right now are great deals.  They aren't semi-retail deals, they are 50 and 60 cents on the dollar. 

Can't you just admit that you were wrong?  Geeze Louise.

 

[raquel]

A wholesaler in the strict term, buys a property at a big discount in order to sell to another investor (a rehabber) in order for them to make a profit retailing.

What a bunch of hogwash! Now you want to invent definitions to defend your posts? That's crazy. A wholesaler is someone who buys and sells property at a discount. Doesn't matter who's buying.