12 DEAL-KILLING RED FLAGS EVERY WHOLESALER NEEDS TO KNOW
After thousands of deals, I've learned to spot trouble from a mile away.
Here are the red flags that should make you pause (or run):
1. SELLER WON'T GET ON THE PHONE
- I've closed hundreds of deals via text, but if someone REFUSES to talk by phone, it's often because they're not the actual owner
- Don't send contracts until you've verified ownership through conversation
- Always verify they know enough property details to prove ownership
2. THE DEAL SEEMS TOO EASY
- When a seller offers an incredible price but can't explain WHY they're selling at a discount, something's fishy
- No motivation usually means hidden problems (judgments, liens, tax issues)
- Be direct: "Why are you selling this property at such a good price?"
3. TITLE COMPANY MOVING TOO SLOWLY
- They don't care about your closing timeline like you do
- Transaction coordination is YOUR job, not theirs
- Stay on them daily or watch your deal evaporate
4. BUYER'S FUNDING EXPLANATION IS VAGUE
- "I'm using hard money" isn't enough
- Ask: Which lender? Gap funding? Private money that's already committed or needs to be raised?
- Don't assign to buyers who can't clearly explain their funding plan
5. SELLER SLOW-ROLLING PROPERTY ACCESS
- If they're delaying pictures or walkthroughs, firmly communicate that this affects the closing timeline
- No access = contract extension
- Remind them that reasonable access was agreed to in the contract
6. GHOSTING (FROM ANYONE)
- Whether it's seller, buyer, title company, or JV partner - ghosting kills deals faster than anything
- Don't be afraid to be "aggressive" in your follow-up
- Call, voicemail, AND text - make it impossible to ignore you
7. "JV PARTNERS" WITHOUT CONTRACTS
- When someone says "let's JV, just add your fee on top" but can't show you their contract with the seller? Run
- If they say "my partner has that information"? Daisy chain alert!
- Real partners have immediate access to all deal documents
8. ATTORNEYS GETTING INVOLVED
- Controversial take: attorneys are deal-killers in simple transactions
- When they start red-lining simple cash purchase agreements, prepare for delays
- Especially problematic in attorney states
9. CHANGING EMD AMOUNT OR CONTRACT LANGUAGE
- The buyer who says "$5K is too much EMD, can we do $1K?" is the same buyer who won't perform
- Stand firm on your contract terms
- Changes to contract language are usually to create exit ramps for the buyer
10. "BIG MAN ON THE BLOCK" PROPERTIES
- When a 2,000 sq ft house sits in a neighborhood of 1,200 sq ft homes, you'll have comp issues
- Watch for unpermitted additions or converted garages - major rehab headaches
- These properties often take longer to sell and for less than expected
11. SELLER GHOSTING
- Often happens because wholesalers don't maintain regular communication
- Always leave voicemails AND text follow-ups
- Keep the seller and title company warm with regular updates
12. TITLE HASN'T HEARD FROM THE BUYER'S LENDER
- Hard money lenders move FAST and contact title immediately
- If title says they haven't heard from the lender, your buyer is probably daisy-chaining your deal
- Check with title directly - don't just take the buyer's word for it
QUESTION: Which red flag has killed YOUR deals in the past? Drop a comment with your story, and let's see which one has cost the most wholesalers money!
For a full video breakdown on this check the link in the comments!
RJ Bates III
12 DEAL-KILLING RED FLAGS EVERY WHOLESALER NEEDS TO KNOW
After thousands of deals, I've learned to spot trouble from a mile away.
Here are the red flags that should make you pause (or run):
1. SELLER WON'T GET ON THE PHONE
- I've closed hundreds of deals via text, but if someone REFUSES to talk by phone, it's often because they're not the actual owner
- Don't send contracts until you've verified ownership through conversation
- Always verify they know enough property details to prove ownership
2. THE DEAL SEEMS TOO EASY
- When a seller offers an incredible price but can't explain WHY they're selling at a discount, something's fishy
- No motivation usually means hidden problems (judgments, liens, tax issues)
- Be direct: "Why are you selling this property at such a good price?"
3. TITLE COMPANY MOVING TOO SLOWLY
- They don't care about your closing timeline like you do
- Transaction coordination is YOUR job, not theirs
- Stay on them daily or watch your deal evaporate
4. BUYER'S FUNDING EXPLANATION IS VAGUE
- "I'm using hard money" isn't enough
- Ask: Which lender? Gap funding? Private money that's already committed or needs to be raised?
- Don't assign to buyers who can't clearly explain their funding plan
5. SELLER SLOW-ROLLING PROPERTY ACCESS
- If they're delaying pictures or walkthroughs, firmly communicate that this affects the closing timeline
- No access = contract extension
- Remind them that reasonable access was agreed to in the contract
6. GHOSTING (FROM ANYONE)
- Whether it's seller, buyer, title company, or JV partner - ghosting kills deals faster than anything
- Don't be afraid to be "aggressive" in your follow-up
- Call, voicemail, AND text - make it impossible to ignore you
7. "JV PARTNERS" WITHOUT CONTRACTS
- When someone says "let's JV, just add your fee on top" but can't show you their contract with the seller? Run
- If they say "my partner has that information"? Daisy chain alert!
- Real partners have immediate access to all deal documents
8. ATTORNEYS GETTING INVOLVED
- Controversial take: attorneys are deal-killers in simple transactions
- When they start red-lining simple cash purchase agreements, prepare for delays
- Especially problematic in attorney states
9. CHANGING EMD AMOUNT OR CONTRACT LANGUAGE
- The buyer who says "$5K is too much EMD, can we do $1K?" is the same buyer who won't perform
- Stand firm on your contract terms
- Changes to contract language are usually to create exit ramps for the buyer
10. "BIG MAN ON THE BLOCK" PROPERTIES
- When a 2,000 sq ft house sits in a neighborhood of 1,200 sq ft homes, you'll have comp issues
- Watch for unpermitted additions or converted garages - major rehab headaches
- These properties often take longer to sell and for less than expected
11. SELLER GHOSTING
- Often happens because wholesalers don't maintain regular communication
- Always leave voicemails AND text follow-ups
- Keep the seller and title company warm with regular updates
12. TITLE HASN'T HEARD FROM THE BUYER'S LENDER
- Hard money lenders move FAST and contact title immediately
- If title says they haven't heard from the lender, your buyer is probably daisy-chaining your deal
- Check with title directly - don't just take the buyer's word for it
QUESTION: Which red flag has killed YOUR deals in the past? Drop a comment with your story, and let's see which one has cost the most wholesalers money!
For a full video breakdown on this check the link in the comments!
5 days ago | [YT] | 31