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Does a marketplace service actually move the paper faster or am I just paying for the feeling of distribution

Sitting on capital so I watch a lot of these deals come through rather than originate them, and I keep trying to figure out what the marketplace layer is actually buying for a wholesaler. I see the same Phoenix and DFW properties hit three different inboxes I'm on, sometimes the same week, sometimes weeks apart, and the assignment fee changes between them. One came through at 18k attached, then I saw it again through a different channel at 24k. It closed, I think, but I have no idea which side got the buyer. So I don't know if the first sender moved it or just blasted it and someone downstream did the work. From where I sit, the marketplace fee looks like it might be compensating for a list that's wide but not deep, meaning a lot of names who aren't buying, and the few buyers who close are finding deals anyway. The 1 percent at closing model on top of a monthly fee is the one I can't make sense of at all. If I were the wholesaler I'd want to know whether the buyer who closed came from that network or from someone they already knew, and I'd want that tracked before month two. Is anyone on the wholesale side actually getting that data back from their marketplace partner, or is it just a closed number at the end.

4 replies

The same deal at two different assignment fees through different channels just means somebody in the middle re-wholesaled it and kept the spread. That's not a marketplace problem, that's a daisy chain, and it tells you nothing about whether the original platform moved it.

The 1 percent at closing on top of monthly is the only model that actually aligns incentives, the problem is nobody enforces attribution rigorously enough to know if it's honest. I'd demand a tagged buyer link per deal and proof of the originating inquiry before I paid that tail fee, full stop.

The attribution question is the one nobody wants to answer cleanly. I've watched deals close from the buyer's side and the wholesaler almost never knows which inbox actually triggered the call, because buyers don't tell them and marketplaces don't either. What I'd want to know before signing anything with a dual-fee structure is whether the marketplace can show you a single closed deal from the last ninety days where they can trace the buyer's first touch back to their platform specifically, not just "they were on our list." If they can't produce that for even one transaction you're probably paying for broadcast. The Phoenix spread you're describing, 18k to 24k on the same address, usually means the second sender is a daisy chain anyway and neither of them is the one with the actual buyer relationship.

The part I have never seen work is the wholesaler assuming the marketplace is doing the matching. What actually happens is the marketplace is doing the broadcasting, and the buyer who closes almost always came in through a relationship that predated the listing by months or years. I tracked this on my own end for about eight months, just keeping notes on every deal I got through a blast versus deals I got from someone I had an actual conversation with before. Out of twenty-two deals I seriously evaluated, three came purely from a blast with no prior contact. None of those three closed for me. Every deal I moved on came from someone who had already talked to me, knew my box, knew I could close without a financing contingency. The marketplace got me the memo, not the relationship.

The fee structure you're describing, monthly plus one percent at close, only makes sense if the close rate on marketplace-sourced buyers is high enough to justify both. And what I keep seeing is that the one percent gets paid and nobody can tell you whether the buyer found the deal through the platform or just saw it there after already being in the seller's pipeline. Phoenix is bad for this specifically because the buyer pool is so condensed. I've gotten the same Arcadia-adjacent deal through four separate channels in the same two-week window. The channel that got paid was probably just the last one before the buyer called back. If I were on the wholesale side I would want the platform to tell me, before I sign anything, what their average days-to-contract looks like on deals in my price range, broken out by whether the buyer was already on their list at time of submission or joined after. Nobody is offering that number because it would probably end the conversation.

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