Hello, how did wholesaling in real estate come about ? thank you
Hi,
UuuGggg Me Caveman, You Cave divorcee, I buy your cave for 2 bronasourus burgers, a club and three stones!
I Caveman, I sell cave for 5 bronasourus burgers, 5 clubs, 10 rocks, and fire!
Me successful Caveman, pretty soon buy Flintstone mobile! (Laugh out Loud!!!)
GR
Good question, Mrrwep.
I think because the smart people who first started it and paved the way for all of us, found the need to do it. They found a niche in the market that wasn’t catered to anyone else specializing in any kind of real estate investing.
There has always been homeowners wanting to sell quickly, get paid cash while selling their houses as is and investors who’d rather dedicate their time and effort to rehabbing these houses rather than looking for them. So some guys acted on it and we are doing the same now, too.
But I gotta give it to you, Gold River. :biglaugh
I’ve also found that many homeowners absolutely do not want to deal with real estate agents. You won’t believe how often property owners ask me, “Are you a real estate agent?” Then immediately add, “Because I don’t want to deal with any real estate agents.” They’re worried about the fees involved with selling a house and some may even have legal issues or be “non-US citizens” so they want to stay under the radar but they have no idea about selling or buying a property. Or they may have had bad experiences with agents who list their property and never market the property and worse, never bring them any lowball offers.
In Texas, where I live, agents are supposed to take all offers to the seller but so many times I learn the agent did not even call the owner with my offer, nor will they ask them if they are willing to owner finance. Other times the home is up for foreclosure auction in weeks and the agent blocks any ‘creative’ offers that include subject to or can’t get a short sale done and the homeowners lose the property and walk away with nothing b/c the agent did not know any thing other than traditional commission-based retail sales.
Now, there are some great agents out there and I’m considering getting my RE license just to get full MLS access and to start working on expired listings but it might not be worth it b/c then I have to tell them that “Yes, I am an agent but I’m not working as an agent in this transaction but as an investor.”
Wholesaling is definitely a niche that needs more leeway than traditional real estate agents can provide. Agents are not taught to think like or work with investors successfully but those that do are incredibly valuable. Agents need to know that investors are not trying to do anything illegal or get around ‘the system’ but instead are just trying to help homeowners.
So, there ya go, wholesaling is a niche like the Mall kiosk located across from the Apple store that charges $35 to fix your cracked iPhone screen b/c the Apple store just told you it would cost $300 and what you really need is a new phone!
My first experience with wholesaling. I was looking thru the newspaper and came across an ad for a Table saw for 35 buks, I called the seller and he said he wud take $30, he explained it was an older unit but ran good. I placed my own ad for this saw asking $90. I was really surprised when I starting getting calls and one guy willing to pay $75 for it.
I called the seller back up and explained I was sending someone over to buy the saw for 75 dollars and told him I wud come by later for my cut. He said that was fine.
Sure enuf later that day I drove by his houses and introduced myself and picked up my $35.
I was really excited that I had made grocery and gas money for doing almost nothing. This was back in the 70’s when gas was 60 cents a gallon and a loaf of bread was 25 cents.
The sad part is, I was too young and stupid to realize what I had just done.
Kenny Rushing birthed wholesaling
Hi,
Kenny Rushing is no where near old enough to birth wholesaling!
Try taking a look at 1960’s and 1970’s real estate guru’s for modern wholesaling!
GR
If we really looked back the beginning of real estate transactions I would bet that there has always been real estate “Pimps”. I reality if you look at it wholesalers are basically doing the job of a real estate agent with just a little twist. We are putting a buyer and seller together for a small fee ( just like agents do) the only difference is that we have equitable title which allows us to do the transaction legally without a license.
I learned about it in 1956 during a situation that my brother and I were in. I had contracted too many properties and had limited time. I was in high school, had a 20 hour a week part time job and a full time girlfriend. Well my dad and I were at the counter of a coffee shop and my dad asked me how is every thing going with the real estate barons. I said we had too much on the plate, and the guy on the stool next to me asked what do you have. I told him and he said he would be interested, he was a contractor and took deals like this to keep his crews working. My dad was a contractor and asked him his name and then said to me he is OK. Our next door neighbor was a lawyer and he said we could assign our contract and made up a quick form, the only time I ever had a lawyer do something for free.
I couldn’t find a single person doing this in the entire S.F. East Bat doing this stuff we call wholesaling but we jumped on it. In 1965 got my real estate license and was lucky enough to meet my real estate sales mentor. An old timer that started in the real estate business in 1909. Most agents took a quick hike when he showed up in order to avoid his long stories. Well, turns out they were stupid and Old Henry was a goldmine and I am forever grateful we met, I was going to quit and he turned me into a first class broker. Whenever it seemed like the weight of the world was on me I would go over to he and his wifes grave and get a pep talk. The real point here is he told me of something that was basically wholesaling he and his partner did back in their start up days. So it has been around but really known by only a few people.