i want anyone that brings us a deal to make as much money as humanly possible i want them to win win big and there's more money there's unlimited amount of money out there so if they make 200 grand god bless him i'm so happy for them and that is the attitude in which you need to have when you're communicating with that whole sailor.

Welcome to the big fat real estate checks podcast with Marco Kaislowski where we help investors like you get the knowledge and skills you need to replace your J.O.B. with passive cash flow for life.

Hey everyone welcome to another episode of big fat real estate checks.

I'm the fearless leader Marco Kaislowski where I'm joined today with Gabrielle Aresha from Montreal where I'm originally from there be no frank today he is not going to be joining us and we're going to be discussing hashing out how to handle wholesalers when they bring us opportunities and of course if you have not yet listen to the first 10 episodes I highly recommend that you do so you understand our processes what we do how we do things of course our philosophy is to buy as many cash flowing assets as we can.

Using existing resources asset based lenders and developing the skills necessary in order to put all the pieces together taking money that is available for us helping sellers that need to sell and the more skills you have the more refined they are the more money you can make out of pretty much thin air just using all the opportunities that are on the ground.

And a lot of my followers are always confused hey there's a wholesaler you know he has possibly a great deal smells like a deal looks like a deal talks like a deal and how do we actually handle this prickly pair I say with quotation marks air quotation marks if you will and how do we actually buy a contract or how do we actually deal with a wholesaler and make sure that the deal doesn't go sideways.

And there are some inherent obstacles for example if we're dealing with a agent directly which does happen we can use our agreements and directly with a seller and the agent will be taking care of of course through our agreements and through the contract that they have with the seller to get paid their commission but when there's a wholesaler they already have a contract which is most likely not going to be ours in fact it never is ours and a lot of the things that protect us are in that contract.

Like the things that we need for due diligence the time of closing earnest money deposits when they're refundable a whole lot of things that most wholesalers just don't do or don't have or don't know so how do we handle this is really the big question so Gabriel I don't know if you want to want to start or let's get into.

Perhaps the things that are not on the contract that we that are very important and the biggest fears I guess that most wholesalers would have a shelling over the the agreement that we're wanting to buy because at the end of the day a wholesaler is selling the agreement not the property.

And there are definitely things that are going to be lacking in the agreement which could be a red flag and we're going to discuss how to possibly fix all that and should be an interesting organic discussion.

Yeah and I think before getting to the actual contract stage if we can couch that for a minute or two it's understanding that you know we have a process to purchase properties and the wholesaler does not or has their own process that's nowhere and doesn't look like ours that's for sure you know they have no idea what an impasse is how to get there and their idea when they're getting into a property they already know that their only exit is to sell it to someone else they don't have the mindset of let me get the best possible deals so that I can you know buy it first.

You know buy it first and if I can't buy it or things don't check out I'm going to sell it as an exit strategy or wholesalers and exit strategy which is the way you know as you know if you've listened to the prior podcast this is how we operate at wholesaling is part of us it's one exit strategy but it's not the only one and it's not the first one that we look for.

So because of this their contracts now we can get back there don't include certain protections first and foremost is the due diligence items we have no idea what they've done and for the most part you know from my history that I have dealing with wholesalers is they don't even do due diligence or didn't even ask or barely ask for anything so you know when we're having discussions with them and asking them well you know what's the condition of the property well you know I haven't seen it yet or the seller told me this the seller told me that so it's always a game of well you know he said she said.

Well that's great but how do we know and same thing with rents you know well this is the right role they sent me okay good well did you check that they're getting paid are their leases so there's a lot of what we traditionally do is due diligence that's not included again it makes sense to a certain extent because they just want to sell the property to someone else we're in it to buy it and hold it so the operations are going to fall on us once they get their check they don't care what happens to the property they don't care if somebody pays or doesn't pay if everybody leaves the next day and so that's that's one of the largest.

Issues I guess with the difference in contracts and obviously the timeline where usually a wholesaler when they're willing to come down to a price that you were you know you're willing to pay based on what they've told you obviously before checking so you know we trust but verify so we're still in a trust phase where they're telling us you know this is the numbers okay so based on those numbers is what we pay and it's always a struggle no no no no no eventually they say yes and why did they say yes it's because they're near the end their fuse which is I got a close next week or I got a close you know in three days well okay well you know we have no

diligence how are we supposed to do that exactly and if we get into an agreement with a wholesaler where we only have three days to check the leases check the financials make sure the building is is sturdy it's not a bad buy you don't want to get into something that's going to be completely terrible can we get the right management team in there that takes time we can't make promises to anyone else based on someone else's timeline so the sad part is in many cases when there is a wholesaler involved they don't have the right mechanisms to really do the right checks and balances as

they're real with saying and if they're their end of their rope or their time and their contract is about to expire with the seller you know the seller is going to be a little cheesed off or let's call it pissed off that you know nothing has happened within a certain amount of time and then once we get involved and we ask for all these things that the wholesaler just doesn't have it can really be a difficult position for the wholesaler to be in and the seller to be in because you know bad things could happen you know nothing's happened for 30 days and now you have 15 days left and suddenly you know this is what you want

why didn't you ask me for this at the very beginning what's going on so it can be a little bit rough and it doesn't mean that it can't be done it's just that it can be rough so you have to be conscious of the timeline and honor whatever contract that they're trying to present to you to make sure that you have all the right checks and balances at the right time now again this can all be resolved and we've done this multiple times now do I like deal you know dealing with a wholesaler absolutely because they're spending their time their money their energy their perhaps driving for dollars

if you're listening to this and you are a wholesaler you know you're putting a lot of time and energy into finding the right deal so you can make a paycheck and take care of your family and you're just trying to you've done the work

and you just want to be compensated for getting the right property the right price get it I understand that but at the same time as buyers and we're using asset based lenders we're using other people's or institutional money to acquire these things we also have to protect our investors to make sure not stepping into something that's going to be a disaster

because that's not really what we're trying to do so how do we fix this how do we really figure this out well of course it starts with a contract

and the biggest challenge that most wholesalers will have is giving us the contract for us to take a look at before something is in place or some paperwork is in place to know that they're going to get paid in some cases they just want you to just hear right the check and then I'll give you the contract

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