The pros and cons of working with real estate wholesalers

You Need to Hear These Pros and Cons of Working with Real Estate Wholesalers when buying a property.  The hardest part of finding any good investment property is the purchase!  Many investors think (know) that the key to making money with investing is to buy it right. However, it can take weeks or even months to do all the research necessary to find undervalued properties. Working with Wholesalers can save time by letting them do the work to find those rare properties.  Wholesalers get properties under contract to purchase but have no intention of actually purchasing the property themselves. They make money by assigning that contract to a buyer (you) for a fee. Most of the time, the purchase price, including the assignment fee, still makes sense for the end investor and is still less expensive than purchasing on-market properties or paying retail prices, but there are certainly things to consider.


Reduced Purchase Prices

A good wholesaler spends significant time and money finding undervalued properties.  They reach out to off-market buyers through various marketing channels to help find those properties that must close fast. Buyers may not have the time, knowledge, or energy to go through a long, drawn-out process of listing the property through a realtor so wholesalers can find properties at an attractive price. Their fee plus the purchase price SHOULD still be under the amount that the seller could get if they sold the property retail and if so, the wholesaler just did a large amount of the hard work for you.


A key benefit of working with a real estate wholesaler is they can speed up buying a property. Buying property can be a long, drawn-out process. Finding buyers and sellers can be exhausting, and using a realtor to find buyers or sellers can drive up costs. As real estate wholesalers have a long list of buyers and sellers, they can help speed up the process by identifying the best parties to execute the deals.


No Financing Contingencies

When you get a property under contract yourself, you will often have a financing contingency which will allow you to break the contract with no penalty in case there is an issue during the inspection. Since the wholesaler has the contract and it is most often a cash contract, a buyer will most often not have those clauses. These properties are truly “buyer beware”, and you must be 100% able to close on the deal once you sign on the dotted line with a wholesaler. In the Fix & Flip business, lenders such as Lendmarq facilitate loans so quickly that the loan process typically does not put the deal at risk. However, if the property does not appraise for what you think it will appraise for, you must be ready and willing to put more cash into the deal if necessary since there will be no ability to break the contract due to a low appraisal. The deal still can be done, but maybe with a larger down payment.

No Inspection Period

Just as in the above example, you must be ready to purchase the property, and you will not have the ability to ask the seller for additional concessions due to any findings there may be upon property inspection. For a Fix & Flip, this is usually not a problem since you plan to rehab the property anyway. However, if you were budgeting $20,000 for the rehab and it turns out it will need more like $50,000, you must be prepared for that.

Time to Close

When you control the contract, you can often ask for an extension if something unforeseen comes up. Extensions are usually not available with wholesale contracts, so you must be ready to close. Lendmarq will make sure financing does not get in the way, but you have to be prepared to move quickly. Additionally, wholesalers have several investors they typically work with, so they are working very hard to flip that purchase contract to the first available buyer. So when they say, “you have 24 hours to make the decision” they usually mean it.

Size of the Assignment Fee

Finally, good wholesalers know the business, and they know what can often cause problems. An assignment fee that is too large can mess up deals, so good wholesalers know to keep it at 10% of the original purchase price or less. However, often they will find those rare “steals” where they can market up the property by a larger percentage and still give the buyer a great deal. Lendamarq (like most lenders) will only allow for a 10% assignment fee to be considered as part of the purchase price. So you might have to make a larger down payment than you were planning for to account for that “steal”. Make sure you know what their fee is, and check with your lender (us) to make sure it won’t be an issue.


Lendmarq works with many deals that have wholesalers involved, and they can be great deals! Be prepared though, and be ready when working with them.

95 thoughts on “The pros and cons of working with real estate wholesalers”

  1. Pingback: cialis lilly brand

  2. Pingback: 100mg sildenafil 1 pill

  3. Pingback: discount viagra canada

  4. Pingback: how much is sildenafil 25 mg

  5. Pingback: generic sildenafil 25 mg

  6. Pingback: how much is generic sildenafil

  7. Pingback: tadalafil costco

  8. Pingback: cialis generic china

  9. Pingback: how long before sex to take cialis

  10. Pingback: tadalafil 40 mg online reviews

  11. Pingback: neurontin australia

  12. Pingback: sulfamethoxazole / trimethoprim and alcohol

  13. Pingback: flagyl sibo

  14. Pingback: valacyclovir alternatives

  15. Pingback: nolvadex everyday

  16. Pingback: reversing lyrica weight gain

  17. Pingback: lisinopril fass

  18. Pingback: metformin diverticulitis

  19. Pingback: furosemide antagonist

  20. Pingback: diabetes medicine for weight loss rybelsus

  21. Pingback: rybelsus 3 mg side effects

  22. Pingback: rybelsus semaglutide for weight loss

  23. Pingback: keflex for blepharitis

  24. Pingback: how fast does zoloft work

  25. Pingback: rovamycine metronidazole

  26. Pingback: gabapentin singhiozzo

  27. Pingback: duloxetine and lorazepam

  28. Pingback: 100mg viagra cost

  29. Pingback: fluoxetine and quetiapine

  30. Pingback: can you stop taking cymbalta

  31. Pingback: lexapro reviews anxiety

  32. Pingback: azithromycin kids dose

  33. Pingback: nortriptyline and escitalopram

  34. Pingback: cephalexin vs cefazolin

  35. Pingback: ciprofloxacin over the counter

  36. Pingback: how long does an allergic reaction to bactrim last

  37. Pingback: bactrim headache

  38. Pingback: amoxicillin used for

  39. Pingback: who makes cozaar

  40. Pingback: diltiazem overdose

  41. Pingback: glp-1 vs contrave

  42. Pingback: does augmentin treat strep throat

  43. Pingback: ezetimibe farmacodinamia

  44. Pingback: ddavp nasal spray for hemophilia

  45. Pingback: is flexeril a benzo

  46. Pingback: how long does it take depakote to reach therapeutic levels

  47. Pingback: effexor xr side effects first week

  48. Pingback: diclofenac misoprostol

  49. Pingback: flomax for postoperative urinary retention

  50. Pingback: alcohol and citalopram

  51. Pingback: amitriptyline side effects blood pressure

  52. Pingback: can i give my dog baby aspirin

  53. Pingback: allopurinol package insert

  54. Pingback: aripiprazole 15 mg side effects

  55. Pingback: celecoxib 200 mg dosage

  56. Pingback: celebrex vs mobic my review

  57. Pingback: side effects of buspar

  58. Pingback: can you take bupropion while pregnant

  59. Pingback: celexa and anxiety

  60. Pingback: .4 ml semaglutide

  61. Pingback: what does remeron treat

  62. Pingback: acarbose sucrose

  63. Pingback: arcoxia lactose

  64. Pingback: repaglinide içeren ilaçlar

  65. Pingback: is robaxin 500 mg a narcotic

  66. Pingback: is abilify addictive

  67. Pingback: protonix davis

  68. Pingback: sitagliptin januvia side effects

  69. Pingback: what does tizanidine do

  70. Pingback: stromectol order

  71. Pingback: tamsulosin generic

  72. Pingback: venlafaxine urinary retention

  73. Pingback: spironolactone weight gain

  74. Pingback: use and dosage voltaren gel

  75. Pingback: synthroid safety

  76. Pingback: levitra pills cheap

  77. Pingback: sildenafil how long does it last

  78. Pingback: pharmacy online prescription

  79. Pingback: viagra levitra order

  80. Pingback: cialis online pills

  81. Pingback: trusted online pharmacy reviews

  82. Pingback: best liquid tadalafil

  83. Pingback: sildenafil used for

  84. Pingback: what are the side effects of tadalafil

  85. Pingback: sildenafil 100mg canadian pharmacy

  86. Pingback: brand name viagra

  87. Pingback: ivermectin 6mg

  88. Pingback: levitra vardenafil price

  89. Pingback: ivermectin medicine

  90. Pingback: ivermectin 10 ml

  91. Pingback: ivermectin 2ml

  92. Pingback: ivermectin 50

  93. Pingback: vardenafil india

  94. Pingback: tadalafil high blood pressure

  95. Pingback: how to buy stromectol

Comments are closed.