Institutional Wholesalers?? Question! Need Help fast!

Hey guys,

I need your help fast on this one. I have a property under contract, and I’ve had several buyers contact me with offers. One of them is a buyer from an “Institutional Wholesaler”. He says they work with large buyers that buy about 50-100 properties a week, and my property was one they desired. Has anybody heard of this? I don’t want to make a rookie mistake and accept the first offer that comes my way. Especially if it is not legit. Also, if they’re a wholesaler, would some of my money get cut short? Because I am a wholesaler as well. So would assigning the contract to another wholesaler that assigns it to a buyer, cut into my spread?

Need help fast!


Sometimes we make this much harder than it needs to be, the whole idea of wholesaling is to provide properties at a wholesale price to investors or for owner occupied buyers! (We don't care who buys the house.)

Now I don’t look at real estate (Homes) as personal, it is just business and I don’t turn around a week or month later and say "Jeez I could have made a dollar and fifty cents more for that property if I had just spent another 5, 10, 20 or 50 hours of my time working on marketing it to just the right buyer.

Typically the right buyer is the first one to come along and offer a decent reasonable price, “Sold” and that ones gone and we go on to the next. Now obviously the buyer has to be able to perform, this includes a mortgage or hard / private money commitment, proof of down payment funds (With new buyer) and earnest money deposit that equals or exceeds what you have down for the contract.

Now I have never had a problem working with other investors including wholesalers, but business is business if your best other qualified offer is for x dollars then this “Institutional Wholesaler” needs to exceed the other offers. Now I don’t care what another wholesaler makes provided I make mine. If their serious they need to put their offer in writing!

The only time I usually consider working with another wholesaler is on the rare occasion I don’t have a buyer and I am willing to share the spread (Joint Venture) the deal with another wholesaler to get it sold. Wholesaling is all about buying and selling quickly for a reasonable profit, new wholesalers sometimes make the mistake of playing with the numbers and trying to sway buyers to up their offers to “Best and Final”; but in wholesaling reputation is everything and if you try to nickel and dime the buyers they get a bad taste in their mouth and will not come back to you again as a buyer.

Your in control, sell the property for the easiest and cleanest deal and go on to the next one, “No Regrets”!

If this “Institutional Investor” was really the cleanest and quickest deal great, but they should know then they have a buyer and be able to provide proof of funds, closing date and need to buy it above your best “Other Offer Price” or go away!

Personally I would rather take a few less dollars for a cleaner deal I know will close quickly allowing me to go to the next deal!