Warning to people starting out !
I want to share this experience for the benefit of all new investors:
My partner found this awesome contact somewhere who was a guy specializing in REOs and distressed properties. We met him two days ago. He showed us a fixer upper in Linden and spoke to us for a long time on how the bank will keep giving great deals only to investors who buy so-so deals at first, from them. The numbers did not work out and we didn't take it.
The next morning he sent my friend this awesome foreclosure house in awesome Westfield where there are all houses 700k and above, The holding company was asking only 250K but wanted an answer in under an hour. We said ok immediately and I rushed to view the house as a drive by We then called him to find out where his office was, to come to give the deposit. He did not want to meet in the office. He asked to meet outside, but he wanted a cashier's check for 10k. We said ok. We asked him the name of the Trust Account to which to make out the check. He said no attorneys were to be involved-they would need to come in only after 60 days. Now , the hedge fund company that was holding the property needed a deposit in their company's name . This guy did not know I was a real estate agent myself or that we had done any deals prior to this. He called us "scared investors" and said the company would not give any more properties if we did not give him a deposit right away. I googled-the "hedge fund company " who was the seller . It turned out it was this guy's own company !Everything he said was a red signal and sounded so fishy!
We politely said we would give him any deposit he wanted, to His attorney of choice , provided our attorney could be involved. Boy, was he pissed off! He tried at length to convince us, to the point where my partner was even tempted slightly to give him the money. I would hear nothing of it. And I could sleep well at night.
Please do not be lured by too-good-to-be true deals that promise you instant success. I almost made 400K that day , lol
Please be aware, ask people around you for advice and DO NOT LET GREED OVERTAKE YOUR SANITY! WIsh you success!