So Let me tell you about my week. I found a Multi-Family home on Craigslist for 179K. Rehab of 17k (previous work recently done)with a AVR of 213K. Contacted the seller to submit an offer of $150K simply because i seen that's what it was last listed on the MLS for before it was removed. Also Had a Buyer on my List that was looking for this type of property and was willing to buy as-is for 163k.
So when I Contacted the seller I found out they where a third party. They said they where going to wholesale the property for a fee. I said hey we can all make money no problem if you can get me the property for 150k. The Wholesaler said let me see if they will accept that offer. Wholesaler calls me back and said good news they accept you offer all they need to see is pof.
So i get my bank statement online send it over and wait on the contract. I get the contract and it was okay No Emd all cash no loan. I had no problem with that because i was going to buy with my money and close the next day with my end buyer.
I have my team do there due diligence on the property and we find out that there is a loan on the property. and a assignment of Rent to the lender. Still No problem in our eyes. So we get the contract and notice its between us and the actual home owner not the wholesaler. So we still sign and say make sure both owners sign the contract. because we also found out there is more then one owner on this property.
I get a call from the wholesaler say well we can move forward with this deal if you want but we want a EMD Now. I said No that is not what i sign to and pull back my offer and found my end buyer another property.
I just want to say I am glad that i did cause now I see the house is going into foreclosure. I am still going to contact the owners and see if I can negotiate a deal with them.
Just always due your research.
As a wholesaler, dude, I feel for you and good thing you got out of it. Happy for you and your buyer!
Yeah lessons learned. Better now then later. Just thought I share some of the things you face in this world of RE.
That is a real problem. When we started out in wholesaling we quickly found that taking down the properties, then reselling them was a win-win for everyone involved. With that being said, there are many 'great' wholesalers, and its unfortunate you found one bad apple. Spend some time and find some reputable wholesalers in your area and you will have better experiences moving forward.
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