Investor vs. Wholesaler: Understanding the Difference
An Interview with Brad and Josh Rand
Brad: What is the difference between a wholesaler and an investor? I’m Brad with sellhousefastgeorgia.com, and I’m here with my business partner and attorney, Josh Rand.
Josh Rand: Hello.
Brad: You’ve closed 15,000 transactions over the last 20 years, many from investors and wholesalers. I wholesale properties and consider myself an investor. I buy properties, sometimes wholesale them, sometimes keep or flip them.Josh, could you elaborate on the difference between a wholesaler and an investor?
Josh Rand: Over the years, my law firm and I have closed over 15,000 real estate transactions, many involving investors or wholesalers. My personal definition of a wholesaler is an investor without money. This is important because, as we’ve discussed, when facing foreclosure, the clock starts ticking. You’ll encounter many people advertising to buy your house.Knowing who you’re dealing with is crucial.
The Importance of Due Diligence
Brad: Absolutely. I’ve been in this business for almost a decade and have been wholesaling properties for a long time. The difference is that I close on the property and buy it, then decide whether to flip, rent, or sell it to another investor.
Josh Rand: Because as an investor, you have the money to close.
Brad: Exactly. Many wholesalers don’t and will string you along until the last minute, then pull the rug out from under you. Vetting them is simple. Do they have a website or web presence? Can you research them online? Check county deed records for their LLC name and personal name. If no deed records exist, they’re likely wholesalers or closing under a different entity.
Read online reviews and talk to the closing attorney, who can tell you how many transactions they handle with these individuals. This will give you a sense of the business’s legitimacy. Money talks, so ensure you’re working with a reputable company that does what they say.
Avoiding the Investor Dog and Pony Show
Brad: We often see a mistake where sellers invite multiple investors to bid on their property. I usually don’t participate in these because I avoid bidding wars. My offer is my offer. However, if you receive multiple offers close to each other,choose from that group. These are the people who know what they’re doing. Don’t take the highest offer, as it’s unlikely to close.
Pick the group with offers close together after researching the companies. The internet makes research easy. We’re usually in that group because we know the house is worth what it’ll be worth when sold, the market dictates that, and renovation costs are known. We operate on the same formulas in this industry.
In Conclusion
I hope this helps you choose the right company to work with. Thanks for checking out this video. Click the link below to visit our website or fill out the form if you’re already there. Our team will contact you ASAP to offer options for your situation. Thanks for watching. I’m Brad, and this is Josh. Have a good day!