⚠️ REAL TALK: The Daisy Chain Disaster: Is Wholesaling Broken or Just Evolving?

If you need a daisy chain to get your deal across the finish line, maybe this business isn’t for you. Real operators close with control, transparency, and confidence. The rest are just fueling confusion and killing trust in the market. Stop hiding behind chains and start taking ownership.

We work hard to build confidence with our clients and even harder to negotiate a deal.  Much less actually open escrow on our assignable contract.  We have been in the business a very long time and are extremely confident in our numbers.  We want full control of our assigned escrows, we like to keep everything clean and disclosed from start to finish.  Otherwise you don’t know what’s going on behind your back and we have been burned multiple times by not keeping control.

🔥 Let’s talk about the conversation NO ONE wants to have: The broken trust of the JV daisy chain.

Ever chased a deal, only to find out it’s been passed through 5 people, marked up $40K, and nobody knows who even controls the contract?

Yeah, same.

Here’s my truth:
👉🏽 I don’t do JV in the early stages.
I’m more open to collaboration after the paperwork is tight, numbers are clear, and I know what I’m handing off.

Why? Because real buyers want to know if the deal is direct and clean. Not passed through a telephone game of wholesalers.

🧨The Industry Is Sparking Debate Right Now:

Is wholesaling broken… or just evolving?

🗣 Some say daisy chains are killing trust.
🗣 Others argue it’s the new wave — fast-moving, networked, and collaborative.

But let’s get real — if everyone’s adding $5K–$15K on top of each other, it’s not a deal anymore.

✅ EARLY JV PROS (when done right):

• Faster exposure
• Support with volume

❌ EARLY JV CONS:

• Loss of control
• Deal gets messy
• Real buyers walk away

I’ll JV — but on the back end. Once the deal is tight, paperwork’s clean, and there’s a strategy.

Let’s call it what it is:
📉 Daisy-chaining with no value add = pipeline poison, just my perspective💃🏽💵

Everyone hates them but they will always be there.

Recently, I genuinely took some time to get to know some of these daisy chainers that would constantly call me about my deals. Turns out majority of all of them had the same story, they were somewhat new to real estate, had very little guidance, and learned daisy chaining from IG and tiktok hehe. All of them were tight on money and needed some extra cash quick, that’s why they think daisy chaining will work. After explaining the negative connotation of daisy chaining in the industry, and why everyone is hesitant to work with them. For the ones that genuinely opened up to me and were open minded I turned them into a simple dispo agent (calling god mode data) or birddog for my JV partnerships. 

Gave them a simple script and box buy of deals we work with and sent them off. So far I’ve had 3 of them generate around 10 deals for me. They are now on the path of learning wholesaling the right way, no more lying! Just generating business!

So next time a daisy chainer is trying to lock up your deal. You never know, you might be able to slot them in somewhere in your business where they can be successful.

I’ve been in the game long enough to see the best and worst of what wholesaling can be and daisy chains are hands-down one of the most damaging evolutions we’ve allowed to spiral.

Sure, a tight value chain where each person actually adds real value bringing a vetted buyer, solving a title issue, structuring the dispo creatively can work.

But that’s the exception, not the rule. Most chains are noise. No added value. Just layers of markup and confusion. If you’re not in control of the contract, not transparent about your role, and can’t answer questions, you’re not part of a team. You’re part of the problem.

This thread’s already heating up - love to see it. Let’s get some heavy hitters in here to weigh in.
 

​@Cory Boatright ​@Dispomoneymike ​@Sherman Ledesma ​@Peter Osmanski ​@Max Rigler ​@John Cleare ​@Ruben Jimenez you’ve all seen the good, the bad, and the messy when it comes to deal flow.

How are you navigating the daisy chain dynamic in today’s market? 
 

This convo i s a chance to reshape how we move in this game. Who else has seen both sides of the chain?

Daisy chains are killing deals and credibility. I’ve seen buyers walk the moment they sense five hands on one contract and I don’t blame them. If you don’t have control, you don’t have a deal. Period. I get the whole “more eyes, more exposure” argument, but if no one can answer basic questions or get on the phone with title, it’s just noise. We need more real players, less middleman madness.

Not going to beat a dead horse here but I feel like a lot of people in this discussion have made some great points around this idea: a daisy chain has to generate value to be worth it.  At the risk of oversimplifying, my thoughts on a quick “back of napkin math” formula for that value add:

(IDP) + (TVOM) > Wholesaler fee = possibly worth using a dispo shop

IF increased dispo price (IDP) + ease of sale expressed as time value of money with opportunity cost weighed (TVOM) is equal to or greater than the fee the dispo shop can justify, I think the dispo operation makes sense on certain deals. 

There’s a combination of more money in your pocket with less work that works. I think realistically this combination could be modeled on a bell curve decently well. 

On the left of the curve, wholesalers that have solid deals but little connection to buyers and little closing & sales experience may find value in leaving the close to a dispo shop. On the other end of the bell curve, wholesalers that are wheeling and dealing at scale likely have a unique ability to lock up deals and work with sellers and their time is not best spent searching for a highly curated list of end buyers paying closer to retail. Folks in the middle of the bell curve probably aren’t a great use case for dispo shops unless the dispo shop is just generating better offers or you can’t find a buyer. 

If a dispo shop does the following, it is likely worth it. If not, kick rocks. 
1) Get you the same amount of money and grant you time back and ease of closing 
2) Pay you more than another more bearish direct end buyer that is an InvestorLift Hawk and is already running direct mail, PPC, etc. 
3) A combination of both 
 

The assumptions above run on the idea that some folks in the dispo industry choose to live their instead of just starting there as a logical first place in off market real estate. I think the days of sloppily daisy chaining a deal to one buyer because you saw it first on InvestorLift are under siege. If you have a stable of trigger-pull ready investors that know how to behave, I think it’s a different story and some folks can offer that experience. 

I think there’s a price for bird dogs and a healthy amount of experienced bird dogging isn’t a bad thing if done respectfully and disclosed and it helps your business if you choose to go that route for dispo. If you won’t let the bird dogs be bird dogs, you don’t want to create such a disconnect that you are losing money if an InvestorLift post alone is not fully bridging the gap directly to retail buyers like your local MLS might. It’s a more well behaved buyer class here that knows the deal but we price that into offers and buyers should only be allowed to be so bearish. 

Some great content already here. I try and have conversations with everyone who requests info even though some are flagged as daisy chainers. Fundamentally, I have no problem working with them if they have a buyer, especially if the property is remote or not in a great location. When there is open dialogue and transparency I have no issue with their strategy, they provide a service and I am open to learning if they can help.

However, I have had people contact me who text without naming themself or their company. Ask a vague question about the posted property. When I ask where they saw it and they respond Investorlift. When I ask why the text when all the details are on the platform. And I instruct them to submit their inquiry through the system. Then I get all kinds of excuses like can’t access it now, forgot my password, would be easier if you just text me…  Those character are the ones who get a hard pass, that is the last conversation I have with them. I have actually been marketed my own deal by someone who didn’t even know I posted it. Those are daisy chainers it seems we all can’t stand as they add zero value because they can’t even be honest about their intentions.

You nailed it. Let’s stop dressing it up as “natural evolution” and call it what it is: a mutation of the industry, driven by people who were never taught how to actually create value.

The argument for daisy chains is a fantasy—it exists to cover for a lack of skill.

“More eyes on a deal” is meaningless. It’s not about more eyes. It’s about the right eyes. One real buyer is worth more than 100 inbox-blasting wholesalers who don’t have a clue about the asset.

“Leverages specialized roles” is just spin. That’s called a Joint Venture—a real one. In a proper JV, everyone’s on one contract, roles are clear, equity is defined, and transparency is mandatory. A daisy chain? It’s a broken game of telephone—each person silently adds their “fee” and hopes no one upstream notices.

This isn’t evidence of a connected ecosystem. It’s proof the barrier to entry is too low. “Gurus” have sold the fantasy that you can earn six figures without ever speaking to a seller or taking on any risk.

So no—nobody’s mad they didn’t “get the deal first.”

We’re mad because the “deal” was never real. It was a house of cards stacked on fiction, inflated spreads, and zero control. It wastes time, erodes trust, and drags the whole industry down.

We don’t need more players.
We need more professionals.

It’s not a process. It’s a parasite.
If you can't answer basic questions about the property, the seller, or title—you're not a wholesaler. You're a forwarder.

Value Chain (Pro JV):
– One contract
– Defined roles
– Real value added

Daisy Chain (Amateur Hour):
– Hidden fees
– No control
– Nobody knows who’s actually in the deal

If your “skill” is hitting “forward,” you’re not helping—you’re hurting.

Buyers: Just ask, “Can I speak to the seller’s title company?”

Watch the chain snap.

MY 2 CENTS!! 

​@Tom_Williford 

Tom, this is one of the most thoughtful breakdowns I’ve seen on the dispo side of daisy chaining. 🔥 The (IDP + TVOM) > dispo fee formula really simplifies the decision-making in a way that’s actionable, especially for folks stuck in that “middle of the bell curve” zone.

I also appreciate how you called out the spectrum between beginner wholesalers and those who are seasoned but stretched thin. That framing alone helps clarify when leveraging a dispo shop is a smart move vs. just noise.

Curious on your take — do you think the rise of platforms like Investorlift is changing where the “middle” of the bell curve lands? In other words, is tech shifting more wholesalers into that intermediate zone faster, and if so, how should dispo operations evolve with that?

I feel like if you have a good deal and Investorlift AI - there is no reason that you don’t sell on your own. 

Would love to hear your thoughts. 

Polina, thanks for the kind words. You ask a very good question regarding where wholesalers land on the bell curve of selling deals with the ability to use InvestorLift. 

I think InvestorLift has really made it more challenging for a dispo shop to justify themselves and enabled wholesalers to move their own deals without dispo help. If you don’t mind making calls, wading through a little BS, and maintaining a finger to the pulse of the deal after contracted, why wouldn’t you just do it yourself?That being said, the ability to bring a true end buyer who knows how to behave and will pay more than the average InvestorLift hawk is still valuable. 

​@Tom_Williford Great points, for sure! I believe ​@Robert Wensley and I had a call with you recently — is that right? If I’m not mistaken, you have the unique advantage of seeing daisy chaining from both sides: as a New Western rep and as a wholesaler.

Really appreciate you being an active part of the community and sharing such valuable insights. Your perspective adds a lot to the conversation.

Hey Polina, yes we spoke earlier this year! I worked with New Western at the time we spoke and enjoyed buying deals from wholesalers for New Western’s investor list in the Raleigh market. I’d also personally buy deals our office couldn’t sell and I realized I just enjoyed the flipping world more than the world of teeing them up for others. Thankful for the time there but just focusing on flipping in NC currently. 

Excited to see the community grow here!

​@Tom_Williford Trust you are doing well!  Mind sharing your “Buy Box” with us, thank you.🤗

​@Tom_Williford Thanks for sharing! Love hearing your journey into flipping! Your experience is super valuable to the community, so don’t hesitate to drop more of your insights as we grow this space. 

Thank you all so much for your insight and wise perspective. And, my take is that the essence of this is to always bring, create and/or give VALUE in whatever role you assume in the deal. Or am I missing something here?