Ethical Wholesaling and Making $47K Off One Phone Call

The words “ethical” and “wholesaling” are rarely used in the same sentence. For the most part, many real estate investors and agents look at wholesalers as deceptive, hard to read, and for the most part just looking to make a quick buck. While this may be true for many new wholesalers, it's far from the truth for Jamil Damji. If anything, Jamil wants to put an end to inexperienced, and often financially dangerous wholesaling.
You could say Jamil was made to be a wholesaler. He had hustle, cold calling skills, and the will to succeed after being rejected from medical school simply due to his age. He set up a website-building business and got the hang of cold-calling quite quickly. After overhearing a discussion about a real estate deal between his partner and his partner’s father, Jamil decided to take his sales skills and turn them into something a bit more profitable. He made a phone call to a local property owner, secured a deal for his partner, and walked away with a $47,000 assignment fee.
Now, Jamil runs one of the most respected wholesaling companies in the United States. He’s set up an “everyone wins” style of wholesaling where sellers, buyers, and intermediaries in between all get paid fair prices while incentivizing each party to do what’s best for the other. This is a brand new concept in the field of wholesaling and one that Jamil wants to see flourish throughout the industry. If you want to learn how Jamil and his team do sixty to eighty deals a month, all while building a loyal customer base, this is the place to be.
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Episode 593
Show notes at: www.biggerpockets.com/blog/re...
00:00 Intro
04:10 Quick Tip
05:12 Join Jamil "On The Market"
09:10 Accidentally Making $47K from One Phone Call
19:33 Losing it All and Starting from Scratch
23:50 What if Wholesaling Becomes Illegal?
34:07 The Ethical Wholesaler
52:20 How to Find "Win-Win" Wholesale Deals
01:04:28 Deal Deep Dive
01:07:22 Famous Four

[@albertthuilot8299]

What a hypocrite, he started by assignment and doesn’t want anyone else to have the chance he did. Real estate licensing came about for ethical reasons, but the amount of ethical realtors out there is low. If anything, a realtor should have a minimum amount of deals per year to keep their license. I hate when people elevate themselves from how they started, then go back and say no one should be allowed to do it.

[@nightscesar]

Jamil is a people person, sales sound up this kind of persons alley, by his ability to talk but what he said on the assignment is actually retarded. “Wholesalers writing up contracts on homes they cant afford should be illegal. Its fraud” Bish what? And how did you make your money??

[@dacr0708]

This is kinda hypocritical. Starts wholesaling with no money or reserves can’t close on multiple homes because he doesn’t have the funds. Yet preaches to not do that to only wholesale if you have the funds now that he has the money from wholesaling. when he didn’t have the funds to start with Do as I say not as I do….. I guess

[@ashleymonique8776]

I was thinking the same thing!

[@bramsey87]

Exactly!

[@asiameowingtons]

The way I see it, he started out in a more ethical way because he already had his end buyer lined up. There are a lot of wholesalers who jump into it without having end buyers, while lying to the sellers. There is a difference when you bridge the gap between cash buyer and motivated seller

[@RICKDOEZ1]

Bro.... I'm definitely going to start over in real estate thanks to this podcast, I always thought i was going to be robbing folks. but creating a win win, is the Key.

[@emilyvoght9180]

Jamil is the best! He’s paving a whole new name for wholesalers. Conducting business with love!

[@Trentmack13]

Absolutely!

[@juan_ctzz]

What market are you in?

[@dnabart]

Wholesalers can market the contract and charge assignment fee on top. It's not illegal

[@Trentmack13]

This was special, I love the break downs on why wholesale helps distressed home owners with ethical resources.

[@emilyvoght9180]

Me too!

[@alanbobowicz141]

There are “good” and “bad” wholesalers, realtors, investors, etc, etc. I can’t believe the lead complaint about using a wholesaler actually comes down to a sloppy investor that didn’t due proper due diligence. Sorry your BRRR wasn’t on a silver platter.

[@emilyvoght9180]

FACTS

[@raheemtheinvestor]

Emily Voght 🥶

[@calebrights8712]

Preach it Alan! No disrespect to anyone but if you are going to buy real estate you should verify all the facts before the purchase.

[@collectingkeys]

Right?? No ones fault but his own at that point. On something so basic too.

[@guyger429]

I have a problem with this. He is basically telling people not to hustle and try to learn the business and wholesale without the money behind them yet he was broke and didn't have the money behind him either. There's nothing wrong with writing a contract and going to find a list of buyers. Maybe you put up your own earnest money so if you don't perform the seller still get something out of you and you risk a little bit on the table.

[@F.REEDOM]

Agree!

[@oreyh8971]

At the time he didn't know that. You can't learn how to ride with out falling off of it.

[@Andys_Auto]

The story at the beginning about his first wholesale deal making 47k is incredible

[@Andys_Auto]

All some people need is one deal like that and they are off to the races

[@joshuab1046]

Really looking forward to learning from Jamil and his amazing team. Also man, you are an amazing comedian. Those ads are hilarious, endearing and are the reason I’m here right now.

[@brodytrainor7153]

It’s always truly inspiring to see such honest people offering their knowledge, experience and perspective to help others along their path to discovering their ideal life. Thanks BP and thank you Jamil!! 🚀✌️

[@Charlie.Lockwood]

Wow...one of the best, if not THE best, episodes I’ve heard on this podcast.

[@lo-mar-TP]

I love Paulie. Great information. New to RE, looking forward to learning more.

[@waleedyousif1546]

Amazing video Jamil. So much value 👍

[@alexandervalladares2501]

Jamil your comments are 100% on point regarding Realtors... coming from a Realtor... Its all about Ethics and BDPR (Florida) they do not even teach you how to comp properly.. I know comping because of one individual JAMIL DAMJI...

[@damngshow]

Thank you brother!

[@TechOutAdam]

If there’s suppose to be regulation on how much someone can wholesale a house for, well then, why hasn’t there been a cap on how much more someone can list and sell their house for on the MLS?…

[@TheForexApostle]

That is huge, this is very inspirational to all people starting from the bottom.

[@9xqspx6]

This address my ever-existing issue with wholesaling. Glad to be reassured that there is an ethical way of doing it!

[@Sir.Black.]

This guy is just mad anyone with just the will to do wholesale deals is a potential competitor to his business, that's the only reason he's advocating for a license. Enforcing it's Not always the solution, don't be greedy...

[@ernestosazo299]

Hey Jamil, if you happen to read this, love your story bro, One thing though I don't have my real agent estate license but yes I took all the courses back in the day and passed the state exam and was already hired be realty world back then, but sadly denied my license. But besides the point, I was taught how to comp properties. I can't remember what course it was, because you have to take Real Estate Principles, is the main one then then you have to take any one of the others. I believe now you have to take 2 more to qualify now. There's Real Estate Law, Real estate Appraisal, Real Estate Loans, etc....Now I remember what course it was. lol but you only had to take 2 at the time I took the exam at that time I had already taken 7.

[@falards]

This is a great interview but the tone of this episode contradicts at least 100 other BP podcast episodes. Seems rash to slam traditional wholesaling at this point.

[@olacraig2883]

more like bigger pocket being usurped by the wef’s woke agenda of virtue signaling!! Remember the ESG agenda!It is not for the small business owner, wholesaler or small investor...

[@F.REEDOM]

Totally Agree! It's bias

[@keilongeorge6027]

This was a great conversation.

[@miguelochoa6837]

This was such a good podcast. It was like David vs Goliath (pun intended) realtor vs whole seller the battle of who helps end seller more#teamJamil

[@alanbobowicz141]

As an investor that survived 2008-2010 the predatory practice is collecting 6% commission after encouraging your client to waive appraisal contingencies and lose all their equity during a correction. Buying multiple properties you are accustomed to limiting your risk, but owner occupants can easily lose their nest egg with the average licensed agent.

[@miguelochoa6837]

@@alanbobowicz141 agreed

[@beverlybonne4211]

I first saw Jamil on a pod cast with Pace. I have been following Pace for a year in July. I have been learning from Lochk, Grant, and Rubel to mention a few. But, after watching this podcast, I am thoroughly confused. Rubel, who was my first mentor, taught us " above all, do no harm." Pace promoted the importance of "community. " But after watching this podcast, I don't see how they could have been in the same podcast together? The two of them seemed to be on the same page;when they aren't reading from the same playbook. What happened?

[@freidaachona3525]

Jamil you rock and glad to be part of Astro coz u neveeeeeeer disappoint . Your presence is very contagious 🥰🥰🥰

[@collectingkeys]

These guys have the boomer mindset of how wholesaling works. Its not just out buying outdated properties that need cosmetic fixes anymore. Sure theres some of that but these days for legit wholesale operations it's about solving the problems of sellers who are unable to sell. My business is coming up on 100 transactions in the last 2 years and half the stuff we do is dealing with things like probates, encumbrances, really bad tenants, things that legitimately hinder a seller from going to market and that no realtor would ever help with. Also, how can you honestly say you dont take advantage of people and then tell a story where you flipped a 6 unit and made half a million dollars by just "realizing" you could raise the rents. Bruh if you were all "ethical" in the way you were preaching you wouldve offered him $400k more and explained to him the situation. Come on bigger pockets you can do better. Theres so many other folks out there running actual real estate wholesale operations but they just dont have the social media backing you need to make them a part of your ecosystem.

[@guyger429]

It's easy to talk about making less after he made a bunch and now has volume but he can do that. Using ripping off grandma is the extreme example is a bad view of wholesaling. Why would you be required to have all the money behind you when you're riding the contract if that was the case you would probably just cash by it yourself and flip it and again you're taking all the risk on not knowing what the repairs might end up being and where the market's going to go and putting in the time and work.

[@loviebello6408]

Have you guys actually ever interviewed an agent? This guy is basically assuming that agents don’t know anything about Wholesaling when in fact Many of us are wholesaler/investors and developers. Also, you should refer to agents as RE agents and not Realtors. Realtors are just Agents that are members of the NAR, and there is no such thing as a licensed Realtor. So RE Agent is always the correct term if you’re going to refer to us as a whole group.

[@jeffrey7160]

They interviewed Ryan Serhant and Graham Stephan

[@alexandervalladares2501]

Jamil has an amazing program called Astroflipping…. Jamil is so savvy about Wholesale but he is even a better human being… Jamil you are a Rock Start

[@jackjack4412]

You know the readers understand that you're a paid reviewer right?

[@dhowto3005]

Thanks Mr. Jamil Damji.

[@sawyermarketingservices]

@BiggerPockets Have you guys done a video on short sales? If so what episode is it, if not will you please do one???

[@Thenatalyteran]

Jamil 👏👏 knowledgeable and humble 😌😌

[@ClareMartinez-mj6qe]

Wow. Alot of fix and flippers are locked in on the formula Jamil Damji described as predatorial: 70% ARV less cost of repairs and less assignment fee. Rehabbers have to consider costs of repair to make sure they profit while retailing the house they bought. His perspective is really refreshing.

[@davidc8560]

Just a marketing spin on exactly what all good wholesalers do. If he said i only take a max fee of 5k or 10k after I find an end-buyer, now that would be different. Oh and btw, you didn't pay top dollar for the 6-unit if you sold it 4 days later for a $450k profit. I have NO problem with it at all, but please stop trying to act like it was an ethical move.

[@Thenatalyteran]

It’s ethical if the seller wants to sell quickly no commissions.

[@collectingkeys]

Boom. Thank you. Took the words right outta my mouth

[@nancychatman7571]

I appreciate the private lender back for ur students that's very important to me

[@redryder8834]

I like your style Jamil!

[@reodconstructionfacilities1619]

Great Information

[@mildredgoeyns8653]

You go Jamil, soooo proud of you? Let’s go

[@damngshow]

Thank you!!

[@keilongeorge6027]

That ending line by Jamil was something serious

[@olacraig2883]

Yeah Jamil, how much did you have in your account when you got started? License as a realtor, very different mindset from an investor. Please do not confuse the 2 as does not make you a better investor or wholesaler. Appreciate Mr Green’s insight. Mitigate risks by having the seller get independent opinion on due diligence before going under contract.As investors, we need to keep an open tool box to handle all eventualities that may come up

[@jackjack4412]

He's the second person I've seen that really harped on that point but they were hypocrites.

[@misunderstoodkj]

@47:29. David is right. This is why I prefer the newbies to start as a Deal Finder (a.k.a. bird dog) not a Wholesaler.

[@RichHomieFatFresh]

Y’all sell courses to people every single day that you know don’t have money or licenses. So if you don’t want them to wholesale then stop selling courses!

[@africanqueen552]

I’m so glad he never made it to be a Doctor it just showed that his destiny was to be in Real estate there is no such thing as luck in this world. He was meant to be in real estate business look at him now he is the Best in his game. I’m so proud of him. Look how at many people he has helped financially and be Free. I’m definitely going to look into his Astro flipping. He is such adorable to watch. I can guarantee y’all his family are very proud of him.

[@ElizabethGalarza1]

Isn't it illegal for a Real estate agent to get into a contract, assign it and make a profit instead of getting a commission?

[@ronniemartinez1070]

I believe it is not as long as the agent discloses in the contract that they are licensed.

[@damngshow]

Absolutely not. The agent only needs to disclose that they aren’t representing the seller, that they are licensed, and that they intend to make a profit on the deal. Happens all the time :)

[@phuk5]

@@damngshow Teach me Jamil! Teach me the way of the force “How to leave a Profit” - Jim Rohn I’m a Brand New Agent in NYC as of 30days now how can I be of service?

[@mathiaslwolf]

Getting a license will never be made mandatory, because the law for a commercial seller is already regulated at a certain rate. Meaning, sell over X 00 amount of homes in a certain period of time, is a commercial activity... anything under that is non-commercial, meaning private. That's why in some jurisdictions it's called a "private whole-seller". The same principle applies to residential property, a duplex, 3 family town-home, and a 4 family complex is a residential, not a commercial, even though the homes are "for rent" as a business, get it? We have private natural rights, protected by the constitution here in the USA. WE are not china-da. You cannot license, or make illegal, what is a natural right, but the legislature is authorized by the US Constitution to regulate commercial activity, without violating Individual Rights and Personal Jurisdiction. With great freedom comes great responsibility. Freedom can only be measured by a highly moral man.

[@MauricioMacias2010]

Do you guys help with getting a license?

[@niragurung4091]

If not body knows what the value is worth and the only way to make profit is by the price going up in value that’s call “speculation “. I’m the public markets the mispricing pricing in assets are opportunities but in real estate is no possible cuz the owner is only one person and sometimes someone who is old and wants to retire and that creates Moral issues. 🤔 Warren Buffet was right.

[@kelcysiddall5146]

Jamil's Astroflipping mentorship is one of the best in the Real Estate field! Highly recommended.

[@emilyvoght9180]

Agreed!

[@alexandervalladares2501]

Jamil's program ASTROFLIPPING is the best program !!!!!

[@levihouse5345]

Any insight to what it is? Newb here

[@kelcysiddall5146]

@@levihouse5345 It is basically a wholesaling mentorship that teaches you all the strategies and techniques to operate your wholesaling business, by leveraging relationships. Also shows you how to run your business ethically, as Jamil explains in this interview. It's perfect for newbies, so check it out!

[@Thenatalyteran]

How much is it ?

[@thehomegirl]

THE INTRO CLIP ALONE IS FIRE 🔥 VERY TRUE!!!

[@damngshow]

Thank you so much!!

[@phil1954]

I've always loved Jamil

[@emilyvoght9180]

He’s the best

[@Andre-ot6hp]

I just don’t understand they need to remember where they came from they was at a point in life where they didn’t once have money to put a house under contract now that he’s paid he’s so against it and that ain’t right at all!

[@tedd7028]

How do you find good wholesalers? The ones I've come across lately are not leaving much on the table.

[@emilyvoght9180]

Reach out to an Astroflipping member! They are taught and mentored by Jamil

[@jackjack4412]

@@sophondanielm7377 how much should they leave on the top?

[@brendanlyons3688]

David, i'm just gonna say, maybe it's time to come down off that pedestal for a moment. Ive read all your books and YOU ENCOURAGE us to buy our investment properties from WHOLESALERS. In "Long-distance RE Investing" you specifically teach to use wholesalers to help you find properties to lighten our own workload.Did you ever consider that by encouraging "Buyer" to purchase your "Seller's" homes for top dollar at the top of an inflated SF market you also MIGHT not be the most ethical from the buyer's perspective?? I'm just saying you should preface the word as "unethical wholesalers" instead of grouping anyone who is wholesaling into one big category. I'm disappointed.

[@andytyler6252]

I don't believe regulation is necessarily the answer. Before watching this video, I was thinking of sharing my assignment fee with the seller as a way to compete with other wholesalers. I haven't found a deal yet. I was thinking that I want to be pre-approved for any offer I make, simply because I want to honor my contracts if I can't find a buyer. That's good business, and the decent thing to do. I wouldn't want this as a career if I felt like I was ripping people off. I would be ecstatic flipping one or two contracts per month, at $2,000 per deal.

[@BIGDRXXMR444]

Do you guys think you can wholesale without faking like a buyer ? Can you offer being the middleman to a homeowner during a wholesale and have successful deals ? Why wouldn't they just go to a real estate agent ?

[@dinosimmons8210]

Looking at these comments…It’s not hypocritical what they’re saying. All they’re saying is when you’re wholesaling, have a buyer ready to go to get business done in an orderly fashion. Assigning a contract with a seller & not having a buyer is self sabotage. He got that $47K because he knew buyers who were looking for inventory. It’s all about establishing business relationships to enhance your skillsets & resources to have real estate success.

[@patriciathompson6228]

I agree many of them are hypocrites now. I find it happening when those of us who are trying to become should not have the opportunities that have had.

[@nore2887]

Jamil that dude no cap

[@nelvimiranda1009]

Let's go Bahia

[@BatistaInvests]

For less than 50k pure spread, or, a free house - i would not take on the risk.

[@tiffanynunez5957]

How do you become a student 😳

[@christopherkarpinski424]

Him saying "Don't rip off people" makes me think this whole thing is a waste of time. But ill stay and watch the whole thing

[@levihouse5345]

Why would wholesaleing be unethical?

[@RevZoneSafari]

35:40

[@altivoindustries8162]

Where the heck is Brandon? Nothing against Rob, but why is he there all of a sudden?

[@rydercotton1184]

He's no longer hosting BP. He needed a break to focus on other things

[@jamesg1618]

Hold up Jamel, have you ever wholesale a house that you didn't came up with the money on you own?

[@jlopez1125]

Dave, please stop yelling into the mic, I'm begging you. I listen to the pod with headphones. I love the energy. I really do, but PLEASE stop yelling.

[@2rebel85]

David you sound kind of a hater when talking to Jamil …

[@projectflip6765]

Most of these wholesale gurus really irritate me. You teach people who want to get rich quick how to scam sellers by pretending to be cash buyers.

[@guyger429]

But if you provide the cash and close in the time frame on the contract what does it matter

[@projectflip6765]

@@guyger429 because that doesn’t always happen. Lying or deceiving sellers is shady business. A lot of these gurus will even sell fake proof of funds letters.

[@guyger429]

@@projectflip6765 I don't think most deals you make people are asking for proof of funds. If that was the case most wild be listing on the MLS. Just do an arv comp build in your profit plus risk of slippage. I don't see how this is ethical or unethical

[@guyger429]

@@projectflip6765 but that could be anyone in any business

[@CliffNotesAnesthesia]

Second

[@stephenhodge6441]

Throwing out a lot of terms that are above basic real estate terminology. Losing me quick...

[@Michaelwentsomewhere]

First

[@BuildingSelf]

He sounds like a hater 😂

[@DavidNovaa]

This guy is a "guru"

[@drgreenthumb5648]

Love Jamil and BiggerPockets. @Jamil I know where the best wings in my area are. I have a million questions and will buy you a wing per question