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.
Dave:
Hey, everyone. Welcome to On The Market. I’m Dave Meyer, your host, and we have an awesome show for you today. I’m going to be joined by Henry Washington, Jamil Damji and James Danerd for a deep dive discussion on wholesaling. We cover what wholesaling is. We address the elephant in the room, which is, is wholesaling actually ethical? And we’ll learn how, as an investor, you can best work with wholesalers. Then at the end, we got goaded into playing investor truth or dare. It goes completely off the rails, but it was very fun and very…