20: Real Estate Wholesalers: Profit Parasites or Property Investors’ Best Friend?

Real estate wholesaling is one of the most hated, commonly criticized, and least-trusted types of real estate investing. Most people paint real estate wholesalers as those who lie to sellers, incorrectly run comps, and try to market bad deals to unexpected investors. This is all said while top real estate investors around the country continue to buy from wholesalers . So what is it? Are real estate wholesalers a parasite to the property investing industry or are they the symbiotic counterpart every successful investor needs? To put it simply, wholesaling real estate is when a wholesaler will put a property under contract for a certain price , then market the property to investors at a higher price, and keep the difference once the property is handed off. Think of wholesalers as the middlemen between a distressed seller and a real estate investor looking for undervalued deals. In a perfect world, all three parties walk away from the transaction happy. But how often does this happen? Jamil Damji, James Dainard, and Henry Washington are on this week to talk about how to wholesale , what most wholesalers get wrong , and whether or not real estate wholesaling still works in 2022. Jamil and James are both active wholesalers, while Henry often buys his properties from wholesalers. They give a “ wholesaling 101 ” course to any new investor looking to find deals as well as to new wholesalers trying to get their seed money started. In This Episode We Cover Whether or not a recession is here and how high interest rates may go in 2022 What is wholesaling and why real estate wholesalers are so hated in the industry Is 2022 a good time to start wholesaling or should investors wait until home prices drop Why wholesaling may be the single best way to get a world-class real estate investing education Which properties to wholesale vs. keep when investing and flipping contracts Vetting your wholesaler and how to know you’re buying a real deal And So Much More! Links from the Show BiggerPockets Forums BiggerPockets Agent Join BiggerPockets for FREE On The Market Join the Future of Real Estate Investing with Fundrise Connect with Other Investors in the “On The Market” Forums Subscribe to The “On The Market” YouTube Channel Find an Investor Friendly Agent in Your Area Dave’s BiggerPockets Profile Henry's BiggerPockets Profile James' BiggerPockets Profile Jamil's BiggerPockets Profile Dave’s Instagram Henry's Instagram James' Instagram Jamil's Instagram Grab This Episode's Data Drop (Questions to Ask Your Wholesaler) The Newbie’s Guide to Wholesaling in 7 Simple Steps The Big Mistake I Used to Make When Qualifying Wholesaling Leads Check the full show notes here: https://www.biggerpockets.com/blog/on-the-market-20 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Check out our sponsor page ! Learn more about your ad choices. Visit megaphone.fm/adchoices