Working with a real estate wholesaler in Memphis can be risky. Anyone can call themselves a wholesaler. There’s no licensing or special schooling required. Make sure you’re working with a reputable wholesaler before doing a deal with them. Read their reviews and talk to other people who have worked with them if you can. Look them up with the Better Business Bureau. If you do your research to protect yourself, you may be pleasantly surprised by the benefits of working with a professional real estate wholesaler.
Cheap Off-Market Deals
The biggest benefit of working with a real estate wholesaler is that they have the means to find off-market deals. They focus their marketing on off-market properties and typically try to get them under contract at a steep discount from what a property would sell for listed on the MLS. A good wholesaler can be a valuable deal source. They can save you a lot of time finding all your deals yourself.
Running the Numbers
An experienced wholesaler knows how to analyze sales comps and estimate rehab costs. They run the numbers and provide them to their investor buyers, along with photos and other information about the property they have under contract. This is very convenient, but make sure you verify the information and due your own due diligence. Don’t rely solely on the information provided by the wholesaler.
Wholesalers often have relationships with investor-friendly real estate agents, title companies/closing attorneys, handymen, contractors, lenders, insurance companies, property managers, and more. They’re a great source of referrals for all the people you need on your team to be a successful real estate investor.
The Bottom Line
Wholesalers make money when you make money. Don’t get upset if they’re making a large assignment fee on a deal you’re purchasing. They’ve likely put a lot of money into marketing and have educated themselves well on negotiating real estate deals. This is their return on that investment! Complaining about their assignment fee could lead to getting blacklisted from receiving access to their deals.