This week’s question comes from Rob on the Real Estate Rookie Facebook Group. Rob is asking: How do I make sure a wholesaler that is sending me deals is not a scam?

With wholesaling, as with any other sector of real estate, you’re always going to have your good and bad actors. Many wholesalers are running professional businesses, but some are simply inexperienced, while others have malicious intent.

Here are some suggestions on weeding out wholesalers:

Have your attorney look over the assignment contract to ensure it’s legal

If a wholesaler ever asks you to send funds directly to them, they’re probably not legit

Know your numbers, so any suspiciously good (or bad) deals can be written off

Contact wholesalers on your own so you can do due diligence upfront

And more in the episode…

If you want Ashley and Tony to answer a real estate question, you can post in the Real Estate Rookie Facebook Group! Or, call us at the Rookie Request Line (1-888-5-ROOKIE).

Check the full show notes here: http://www.biggerpockets.com/rookie130

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130: Rookie Reply: How to Spot Scam Wholesale Deals 10:19 Share

Real Estate Rookie

Shownotes Transcript

130: Rookie Reply: How to Spot Scam Wholesale Deals