Wholesaler representing Lenders

Im about to do a walk thru with a wholesaler who represents many mortgage lenders that have properties they are trying to sell. what he is telling me is that his numbers are the bottom selling price, and that they wont go any lower, and that they wont look at a short sale, but in 2 weeks his agreement deadline ends with them and after that the lenders will put the property on the market themselves and ask alot more. hmmm Im thinking to myself, the numbers are close to 70% under ARV but that doesnt include repair cost,holding cost, or fees. How can I make this deal more attractive to me? Thats what Im asking myself, but I dont know the answer, is there anyone who might have some tips? thanks for replying.


He’s lying. They won’t go down any more because he doesn’t want them too. He’s saying that partly because it’s his job to look out for the banks best interest as their Realtor, but more so because the lower the price goes, so does his commission. If none of the properties are listed at a price below 70% then there’s no way the bank is at rock bottom.

As for the short sale, that is only possible when you are buying from the homeowner and negotiating a discount on the liens. When the bank already owns the property a short sale is not possible. But the same low offers are. If the properties are new to the banks inventory, then they won’t be as willing to let them go for less, but once they hit 60 days they generally drop a little, then again at 90 days. Once they get over 100 days on the market they will start to drop weekly or every two to three weeks until sold.

Personally, I would submit my offer based on what I thought the property was worth. Chances are, anyone else who has put in a bid on the property knows what they are doing and, if the property is in the condition you say, they would not have made any offers at 70% ARV either. They more than likely would have made a rational offer, or lower. It is the Realtors responsibility to submit ALL offers to the lenders for review. It is not their right to do the review for the lender.

Finally, if this Realtor is losing his contract with the lender then he isn’t worth a lick anyway. The only time I have known banks to fire Realtors, or not renew their contracts, is when the Realtors fails. If a Realtor is successful in selling the bank owned properties, then it’s in the banks best interest to keep them around to continue selling their REO stock. Unfortunately, most bank Realtors are satisfied with listing volume and hoping for the best. They get comfortable with the seemingly endless supply of REO’s so they fail to do their basic Realtor marketing duties. They’ll list in the MLS or like and that’s about it. It’s no wonder they lose their agreements.

GooD Luck! :beer