Why Everyone Hates Real Estate Wholesalers

Wholesaling homes can be both fun and rewarding in many ways, and today provides an incredibly valuable service to everyone. So why are real estate wholesalers so hated?

Those wholesaling homes today provide an invaluable service to struggling homeowners, to buy and hold investors struggling to compete for deals, to lenders needing to balance the books and recapitalize, to cities desperate for tax revenues, to communities and neighbors suffering from crime and declining home values and to the wider economy as a whole. So why the haters?

Some of the reasons investors wholesaling homes are disliked so much are justified, others aren’t. And before you get worried about getting into wholesaling homes, many wholesalers are really loved too.

However, Realtors get jealous when they miss out on big and easy commissions to investors, even though investors often offer more value and benefit to sellers and buyers than many real estate agents do.

Similarly buy and hold investors and those that actually fix and flip homes get envious of how much others make on wholesaling a house, especially if they are putting in far more sweat and real cash. Of course if you are wholesaling a house with no money of your own in the deal and make $50,000 in a day and another flipper buys it , puts $25,000 in repairs into it, and barely scrapes out with $10,000 it’s understandable, but still a win-win.

However, there are thousands of amateurs and shady investors out there that have given wholesaling a bad name. Some have been notorious for serving up real deals or value. Sometimes this is due to just trying to bleed out every cent they can, while others are just terrible at their jobs. Then there are some end investors that just wish flippers would be better team players and be serious about developing relationships, rather than gouging on every deal with a hit and run attitude.

However, good wholesalers really do offer good value and make invaluable partners. Some even do really offer better deals than they should.

The bottom line is that everyone, at every stage in the property recycling process should be fairly compensated for doing a good job. Just be the good kind of wholesaler; know your stuff, do excellent work, build solid relationships and  a good reputation if you want to make the real money, easily. and be around for a while.

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