We’ve recently both bought and sold properties involving wholesalers. We also receive a lot of useless spam pitches from wannabe wholesalers/flippers.
We purchased a property in Cleburne from a wholesaler. He was very clear up front that he was a wholesaler and that he had a property under contract. He told us the price that he wanted for the house. It was an acceptable price for us, so we did not negotiate with him. We view transactions like this as partnerships, so we want him to want to work with us again rather than feeling like he was squeezed for every last dollar of profit he could make. It’s the difference between long-term and transactional relationships. We asked if we could send our our property manager over to check out the house. He and she coordinated a time to walk the property, and after the property walkthrough, she gave me a rundown of the repair costs and the after repair value. Subsequently, we confirmed with him, scheduled the closing, and closed the next week. Easy peasy, and both sides were happy; he got the price he wanted for his flip and we paid an acceptable price to add to our portfolio.
We also recently sold one of our Cleburne properties to a wholesaler. He had contacted our property manager, who knew of the group. He was very upfront with his process:
Hey Misty, before I send over a contract, I would like to go over and take a look at the property, but I wanted to let your client know what I’m thinking before we disturb the tenants.
For it to work for us I would like to offer your client $X. our buyer will cover all closing costs excluding any taxes, liens and agent commission.
I would ask for a 5 day option period in order for us to try to sell the property. I will put it out at $Y and set up a single showing at a specified day and time for our buyers to come out and view the property. I can let you know within an hour of the showing if we were able to sell it or not and we can move forward or terminate the contract so the property isn’t tied up.
I wanted you to know the price I’ll be putting it out at because I’m not just trying to throw a low ball offer at you.
He was clear about his process and we knew that he had the buyers and had done deals before, so we were comfortable moving ahead with this process because of this person’s transparency. The evening of the showings, we had an offer for $X, which we signed, and we closed two weeks later. Again, easy peasy because all parties were happy. The buyers got a property they wanted at an acceptable price. The wholesaler got $Y-$X as a flip fee. We sold a property at an acceptable price to us. Simple.
However, I’ve also encountered a lot of wholesaler/flipper wannabes. Here’s an example of a recent exchange from someone who contacted me via this website:
[INSERT CRAPPY “I BUY HOUSES” CLIPART HERE]
Hi my name is ***** *********
Im a investor/wholesaler
Please add me to your buyers list
Tue 6:12 PM
Message by You: Hi *****! Thanks for reaching out. If you can send me proof of funds, I’d be happy to shoot a property over to you. We can communicate via email if it’s easier…whatever works for you., Wednesday, January 12 2022, 9:33 AM
Message by (XXX) YYY-ZZZZ: Ok thanks, Wednesday, January 12 2022, 11:31 AM
Message by You:
Safe to assume that you don’t have funds?
Thu 11:26 AM
Message by (XXX) YYY-ZZZZ: I have funds and my buyers list has funds as well, Thursday, January 13 2022, 12:02 PM
Message by You: Excellent. After you shoot over the proof of funds, we can do business., Thursday, January 13 2022, 6:39 PM
Since then, it’s been crickets.
Let’s be clear. Having funds is like pregnancy. You either have them or you don’t, just like you’re either pregnant or you aren’t.
If you have funds, then showing that you have funds is very simple. We provide proof of funds with every offer that we make just to show that we’re not faking it until we can make it.
The moment you tell me that you are an investor, I’m going to ask for proof of funds. It’s that simple. Investors have capital. Proving it is simple.
We are happy to work with wholesalers, flippers, and investors. We have inventory that investors may want. We have capital to purchase properties that the flippers/wholesalers have. If the numbers work, we can do a deal.
However, in order for us to work with you, we need transparency. We also need a certain level of sophistication so that we don’t waste anyone’s time. If you want to wholesale our properties, that’s fine. Show us the proof of funds that you and/or your investors have. Don’t just tell me “our investors have a lot of money” or some other fluff. SHOW ME THE FUNDS. It’s very easy, and any investor who has done a deal before will be able to comply quickly.
Meet those criteria? Want to work with us? Contact us and let’s see what we can do!
You can also call or text us at (972) 808-6913.