Why are wholesalers still needed

[curiositygirl]

With all of the dicounted houses and reos and foreclosures listed with mls etc why are wholesalers still needed right now?

[Rastusracing]

In my humble oppinion there is one simple answer here.

Wholesalers are in some way performing a service to their clients.....the buyers oh and lets not forget the sellers as well. Yes prices are cheap in relation to past years but that alone doesnt make for a sold and funded deal. In the end if as a wholesaler they are completing the transaction, quicker, easier, with more options than the seller can bring to bear and same for the buyer then I say hell yeah the wholesaler has a place and always will.

What are the services that your bringing to your clients, both the sellers and buyers, get that nailed own and you now have your niche, once that happens, expand and improve upon it and you will have a life long and rewarding career.

Enough said......Kevin

[fadi]

If you find good deal, there are those who will want it. Not every investor knows how to find good deals.

[Mr Investor]

If you find good deal, there are those who will want it. Not every investor knows how to find good deals.

Not just that but some don't know how to analyze a deal. If you know how to analyze a deal,crunch the numbers and doing a lot of due diligence than you're set.

[phillyinvestor]

If you find good deal, there are those who will want it. Not every investor knows how to find good deals.

I agree. Also in my experience I deal with distressed properties and many investors I wholesale to spend most of their time managing their rehab crews. They want more deals but don't have the time to find them or don't analyze them well.

[ericmedem]

Here is a mathematical answer to your question.  That you can take to the bank

Basically in a great market wholesalers look to find propeties at 50-70% of fair market value and then resell for a profit.

Now in a bad market wholesaler still are looking to find properties that are 50-70% of fair market value.  The only difference is that in a bad market the Fair market value has decreased, but the percentage of the fair market value that you need to buy at doesn't decrease at all.



Example:

House #1 is worth 100,000 in a good market
A wholesaler buying at 60% of fair market value would pay 60,000

House #1 in a crap market is worth $80,000
A wholesaler will now need to buy at 60% of the fair market value $48,000

The problem most people have in grasping this concept is that they are trying to compare finding homes at a deep discount relative to previous market prices.  The previous market prices are no longer of any value.

I hope this helps.

[philkat2007]

We all work together!
That's is the reason you don't
cheat another Investor! There
is enough to go around and when
you have found a good deal, if you
do it right you can prosper years to
come. JMO! I don't look at other
Investors as competition, they are
business partners and if you help
them, chances are they will remember
you later on! No matter what you do in
Real Estate, there will always be a need
for you. That's why I love this life time
Investment!! JMO

[donrock]

A wholesaler is just a person who finds a good deal and resells it, usually right away without doing anything to it. Being a wholesaler doesn't mean you are in a specific field just that you are using the market forces to make money. Buy low and sell high quickly is the wholesalers mantra.

donrock